Global equity markets posted gains overnight as investor sentiment shifted decisively toward artificial intelligence and technology stocks.
The rally was bolstered by softer-than-expected US inflation data, which strengthened market expectations that the Federal Reserve will adopt a more dovish monetary policy stance in the coming months.
Cooling price pressures in the US provided a tailwind for risk assets, allowing the tech-led recovery to take hold ahead of critical earnings reports from major names including Alphabet and Tesla.
Despite the positive momentum in Western and Asian markets, Indian benchmark indices are set for a subdued opening on Wednesday.
The Gift Nifty, a key pre-market indicator for the Nifty 50 and Sensex, is trading around the 23,868 level, suggesting a flat start for domestic equities.
Cautious sentiment persists among local investors due to elevated crude oil prices and escalating geopolitical tensions in the Middle East, which continue to weigh on regional risk appetite.