(RTTNews) – Nifty futures trading suggests Indian markets are likely to open little change on Wednesday. With a drop in the number of COVID-19 cases, investors are placing hope for a gradual reopening of the economy.

India’s GDP may have contracted less than previously estimated in FY21, the State Bank of India said in its Ecowrap report.

UK broker Barclays said the second wave had started to recede and the overall situation was under control.

The benchmarks Sensex and the Nifty dropped early on their gains to end on a flat note on Tuesday, while the rupee rose 19 points to end a near two-month high of 72.77 against the US dollar.

Asian markets were flat this morning and Treasuries maintained a rally after Vice President Richard Clarida said talking about the cut will depend on the flow of data.

Separately, Federal Reserve Bank of San Francisco President Mary Daly stressed that the policy is in very good shape right now and that the Fed will remain patient.

The dollar wallowed near its lowest since early January against its major peers, while spot gold remained stable, after hitting its highest since Jan. 8 at $ 1,899.11 on Tuesday. Oil prices have stabilized as investors weighed the impact of a possible return of Iranian oil to the market.

US stocks fluctuated before ending slightly lower overnight as disappointing consumer confidence and home sales dampened sentiment.

The Dow and S&P 500 slipped around 0.2% while the high tech Nasdaq Composite ended slightly lower.

European stocks ended mixed on Tuesday after hitting record highs earlier in the session. The pan-European Stoxx 600 ended flat with a positive bias.

The German DAX edged up 0.2% to a new high, while the French CAC 40 index and the UK FTSE 100 both lost around 0.3%.

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