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Indian shares are likely to open higher on Wednesday, extending the week's gains, as investors await U.S. inflation print for possible rate cut clues, with Canara Bank and JSW Energy in focus after their inclusion in the emerging markets index.

The Gift Nifty was trading at 22,369 as of 8:15 a.m. IST, indicating that the Nifty 50 will open above Tuesday's close of 22,217.85.

The benchmark Nifty has gained 0.74% so far this week, recovering from a 1.87% drop it logged last week - its worst since mid-March.

Incessant foreign selling due to worries around the majority with which the ruling Bharatiya Janata Party is expected to return to power in the world's largest democracy has weighed on investor sentiment, analysts said.

The results of the seven-phase-long ongoing election are due on June 4.

Foreign investors sold Indian shares worth 40.66 billion Indian rupees ($487 million) on a net basis on Tuesday, while domestic institutional investors bought 35.28 billion rupees in stocks.

They have been sellers in 25 of the last 30 sessions.

Nifty's gauge for volatility closed Tuesday's session hovering around 19-month-high levels, despite snapping a 13-session-gaining run, while foreign investors loaded up on options to hedge their equity portfolio on election jitters.

On the day, Asian peers outside Japan were 0.43% higher. All three Wall Street equities advanced overnight. [.N]

Investors are keeping an eye out for key U.S. inflation data, due after the closing bell, for possible rate cut clues. [MKTS/GLOB]

On the domestic front, the market's reaction to the inclusion of lender Canara Bank and power producer JSW Energy, among others, in the MSCI Emerging Markets index post the operator's quarterly rejig will be in focus.

The Street's reaction to telecom operator Bharti Airtel's fourth-quarter revenue miss will also be eyed.

STOCKS TO WATCH:

Cipla: The promoter group of India's third-largest drugmaker is looking to sell a 2.53% stake via a block deal, CNBC-TV18 reported on Tuesday.

Colgate Palmolive (India): The consumer goods maker posted a higher fourth-quarter profit on price hikes and improved demand for its personal care products.

Patanjali Foods: The consumer goods maker's fourth-quarter profit falls on higher expenses, lower edible oils sales.