Sensex, Nifty Seen Higher At Open; RBI Rate Decision Eyed

(RTTNews) - Indian shares look set to open on a positive note Wednesday after Wall Street's major indexes staged a comeback overnight and oil prices fell from recent highs on concerns around China's economic outlook.

Trading later in the day may be influenced by the Reserve Bank of India's (RBI's) monetary policy decision.

Stock-specific action could be seen before TCS kickstarts the September quarter earnings season on Thursday.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent and 0.9 percent, respectively on Tuesday after six consecutive sessions of free fall. The rupee gained 4 paise to close at 83.96 against the dollar.

Asian markets traded mixed this morning, with China's Shanghai Composite index falling nearly 4 percent after a highly anticipated announcement on plans to boost the country's ailing economy fell short of market expectations.

The dollar drifted sideways and gold extended losses ahead of the release of the Federal Reserve's September meeting minutes.

Oil prices were seeing modest gains after tumbling the most in more than a year on worries over Chinese demand.

Brent crude futures lost 4.6 percent on Tuesday after Beijing held back on major fresh stimulus, raising concerns about the trajectory for demand growth from the world's biggest crude importer.

U.S. stocks closed higher overnight, with tech stocks outperforming due to easing of Treasury yields and ahead of the third-quarter earnings season.

The Dow edged up 0.3 percent, the S&P 500 rallied 1 percent and the tech-heavy Nasdaq Composite surged 1.5 percent.

European stocks drifted lower on Tuesday as Middle East worries persisted and China's state planner announced no new plans for major stimulus.

The pan European STOXX 600 dipped 0.6 percent. The German DAX slid 0.2 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 fell 1.4 percent.