India stock benchmarks set to track Asian peers higher; Fed policy in focus

India’s equity benchmarks are set to open higher on Wednesday, tracking gains in their Asian peers, ahead of the U.S. Federal Reserve’s policy decision later in the day.

Gift Nifty futures were trading at 26,149 points as of 7:44 a.m. IST, indicating that the benchmark Nifty 50 will open above Tuesday’s close of 25,936.20.

Most markets in Asia rose on the day, with MSCI’s broadest index for Asia Pacific stocks outside Japan up 0.5% following a fresh wave of optimism over artificial intelligence.

The focus is also on the Fed’s rate decision. Markets are pricing in a 99.9% chance for a 25-basis-point rate cut, according to CME’s FedWatch Tool.

“A dovish tone from the U.S. Federal Reserve could further boost liquidity flows into emerging markets like India, helping the Nifty and Sensex sustain their momentum near record highs,” said Ponmudi R, chief executive officer of Enrich Money.

Foreign investors bought Indian shares worth 103.4 billion rupees ($1.18 billion) on Tuesday, as per provisional data, marking their biggest single-day buying in months.

Signs of easing global trade tensions and a drop in crude oil prices will also aid investor sentiment on Wednesday.

U.S. President Donald Trump said on Wednesday that he expects to reduce fentanyl-linked tariffs on China.

Oil prices slipped about 2% as investors weighed U.S. sanctions on Russian suppliers and a potential OPEC+ plan to raise output.