Indian shares are likely to open higher on Wednesday, snapping a two-session losing streak, though caution may persist as a lack of progress in U.S.-Iran peace negotiations keeps geopolitical risks elevated.
The GIFT Nifty futures (.GIFc1) were trading at 23,982, indicating that benchmark Nifty 50 NSE:NIFTY index will open above 23,865.75, the closing level on Tuesday.
Iran said on Tuesday it would not meet senior U.S. envoys who travelled to the region following an outbreak of hostilities, clouding prospects for a lasting peace between the two countries.
Brent crude futures still trade near $73 per barrel, while Asian markets (.MIAPJ0000PUS) were down 0.3%.
India's benchmark 50-stock index and BSE Sensex BSE:SENSEX shed 0.8% each over the past two sessions, pressured by foreign outflows on concerns over potential U.S. Federal Reserve rate hikes and a weak monsoon.
Foreign investors sold Indian shares worth 25.57 billion rupees ($270.12 million) on Tuesday, as per provisional data. This was their second consecutive session of selling.
STOCKS TO WATCH
** KPIT Technologies NSE:KPITTECH expects a sequential decline in dollar revenue and operating profit in June quarter due to "sudden actions" by some European original equipment manufacturers (OEMs), triggered by their recent profit warnings and adverse business outlook.
** Kotak Mahindra Bank NSE:KOTAKBANK to acquire Deutsche Bank's XETR:DBK retail banking and wealth management business in India.
** Brokerage firm Citi Research upgrades jeweller Titan Company NSE:TITAN, wire maker Havells India NSE:HAVELLS, and retailer Page Industries NSE:PAGEIND to "buy" from "neutral".
($1 = 94.6600 Indian rupees)