Indian shares likely to open marginally lower after relief rally
India's benchmark indexes are likely to open marginally lower on Wednesday after sharp gains over the last two sessions in a relief rally, as investors await more clarity on global trade.
Gift Nifty futures were trading at 23,273 as of 7:50 a.m. IST, indicating a 0.2% decline for the Nifty 50 from its Tuesday's close of 23,328.55.
The rally, in which the BSE Sensex erased losses after the April 2 U.S. reciprocal tariffs announcement, was fuelled by a surprise pause on levies, followed by an exemption on electronic items.
Foreign portfolio investors, who have been offloading risk assets amid an uncertain global trade environment, snapped their nine-day selling streak in India, buying shares worth 60.66 billion rupees ($707.5 million) as per provisional data.
However, analysts said investors remain watchful of potential supply chain worries emerging from the U.S.-China trade war.
Most Asian markets declined, led by losses in China and Hong Kong, while chip-sector shares dragged Japan's Nikkei after Nvidia said the U.S. government is limiting exports of a key chip to China. [MKTS/GLOB]
Meanwhile, data showed that domestic retail inflation slipped to a more-than-five-year low of 3.34% in March, raising prospects of further rate cuts by the Reserve Bank of India.
"We expect the RBI (Reserve Bank of India) to cut policy rates further by 50 basis points in fiscal year 2026," said Paras Jasrai, associate director at India Ratings and Research.
Jasrai, however, said that data in the coming months will also be crucial factor for RBI to cut rates, with the central bank having already cut rates by 50 bps since February.
STOCKS TO WATCH
** IndusInd Bank estimates a 2.27% hit to its net worth as of December-end, after an external probe in the following the discrepancies in derivatives accounts.
** Vedanta and Cairn Oil & Gas acquire seven new blocks in a bid to increase oil and gas exploration and production in the West Coast.
** ICICI Prudential Life Insurance posts surge in fourth-quarter profit driven by strong demand for its group insurance offerings, while ICICI Lombard General Insurance posts surprise profit drop on higher claims paid.
