Indian Shares Seen Tad Higher At Open

(RTTNews) - Indian shares may open higher on Wednesday as a continued fall in oil prices helped ease worries about inflation and the outlook for interest rates.

That said, investors remain cautious over the U.S.-Iran peace deal due to lack of clarity over the specifics of the deal that will be formally signed on Friday in Switzerland.

According to Bloomberg, Iran could have access to up to $300 billion in reconstruction funds as part of its agreement with the United States.

The proposed agreement could unlock billions in frozen Iranian assets and allow the country to immediately begin selling oil and fuel.

Benchmark indexes Sensex and Nifty rose by 0.7 percent and 0.6 percent, respectively on Tuesday to extend gains for a third consecutive session amid the easing of geopolitical tensions in West Asia.

The rupee settled 15 paise higher at 94.56 against the dollar, rising for the straight day on expectations that the ceasefire agreement between Washington and Tehran could help ease concerns over disruptions to global trade and energy supplies.

Foreign investors returned to selling Indian equities and offloaded shares worth Rs. 749.18 crore on a net basis on Tuesday, while domestic institutional investors net bought shares just worth about Rs. 0.06 crore, according to exchange provisional data.

Asian markets were muted this morning as investors rotated out of technology shares.

The dollar eased while gold was a tad higher at $4,341 an ounce, extending gains for a fifth straight session ahead of the U.S. Federal Reserve's policy meeting later in the day.

Investors are looking for fresh insights into the Fed's future rate path under new Chair Kevin Warsh.

Brent crude futures were marginally higher above $79 a barrel after tumbling nearly 5 percent in the previous session on expectations of increased supply.

Overnight, U.S. stocks ended mixed as markets waited for the U.S.-Iran peace deal to be finalized. The narrower Dow gained 0.6 percent to reach a new record closing high on eased inflation and rate worries after U.S. officials indicated that the interim peace deal will reopen the Strait of Hormuz to commercial traffic without tolls by Friday.

Yields on Treasuries fell and oil prices remained close to three-month lows after the Wall Street Journal reported that the United States will allow Iran to immediately resume oil exports, marking a significant shift in sanctions policy.

The tech-heavy Nasdaq Composite fell 1.2 percent and the S&P 500 gave up 0.6 percent, weighed down by losses in chip stocks.

European stocks edged higher on Tuesday, building on the previous session's record close, on eased energy supply concerns.

The pan-European STOXX 600 gained 0.3 percent. The German DAX inched up by marginally, France's CAC 40 surged 0.8 percent and the U.K.'s FTSE 100 added 0.6 percent.