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Indian shares are set to open little changed on Wednesday amid caution due to concerns of escalating trade conflict between the U.S. and China, and as investors await the U.S. Federal Reserve's June monetary policy meeting minutes.

India's GIFT Nifty on the NSE International Exchange was up 0.06% at 19,506, as of 8:15 a.m. IST.

The blue-chip Nifty 50 and Sensex indexes closed at fresh highs for the fourth session in a row on Tuesday, aided by gains in financials.

The rally has extended to broader markets as well, with the midcaps and smallcaps hovering near record and 52-week highs, respectively.

"Rising domestic demand and sector-specific recovery are more than offsetting negatives including tough global economic conditions and higher policy and borrowing rates," analysts at S&P Global Ratings wrote in a note on Tuesday.

Wall Street equities were closed for a public holiday on Tuesday. Investors await the minutes of the Fed's June policy meeting, due at 11:30 p.m. IST on Wednesday, for cues into the monetary policy trajectory.

While recent data after the June Fed meeting signalled moderation in inflation, the odds of a 25 basis points rate hike in its upcoming July 26 meeting stood at 86.2%.

Asian markets edged lower on concerns over slow post-COVID economic recovery in China, after data showed that services activity expanded at the slowest pace in the country in five months in June.

China's decision to impose export restrictions on gallium and germanium products - key chipmaking materials - from August 1 has fuelled fears of a trade war with the U.S. and weighed on sentiment. [MKTS/GLOB]

Foreign institutional investors bought 21.34 billion rupees ($260.2 million) of Indian equities on a net basis on Tuesday, while domestic investors sold 7.85 billion rupees of shares, as per provisional NSE data.

STOCKS TO WATCH:

** State Bank of India: Co accords approval for acquiring entire stake held by SBICAPS in SBICAP Ventures.

** LTIMindtree, HDFC: National Stock Exchange decides replace HDFC with LTIMindtree in the Nifty 50 from July 13.

** Aurobindo Pharma: Co's unit announces positive result in phase 3 clinical trial for drug to treat breast cancer.

** Bandhan Bank: Co's total deposits up 16.6% Y/Y in June quarter.

($1 = 82.0210 Indian rupees)