Equity benchmark indexes are set for a muted start on Wednesday as escalating hostilities in West Asia have pushed oil prices higher and spurred risk aversion.
The Gift Nifty futures were trading at 24,834 as of 7:43 a.m. IST, indicating that the Nifty 50 will open near the previous close of 24,853.4.
Other Asian markets opened lower, with the MSCI Asia ex-Japan index losing 0.5%.
Wall Street equities fell overnight while crude prices rose as the Israel-Iran war entered its sixth day, heightening investor concerns over a broader escalation in the oil-rich Middle East.
Rising crude prices hurt economies like India, where oil makes up a large portion of the import bill.
Middle East tensions, prolonged uncertainty over U.S. President Donald Trump's tariffs and signs of U.S. economic weakness create a fraught backdrop for the Federal Reserve's policy decision due later on Wednesday.
The Fed is expected to hold rates steady, and attention will be on its updated economic and rate projections.
Domestic institutional investors were net buyers of Indian stocks for the 21st session in a row on Tuesday, purchasing shares worth 82.07 billion rupees (about $950 million). Foreign portfolio investors snapped a four-session selling streak.
Among individual stocks, BSE will be in focus after India's markets regulator approved requests from the National Stock Exchange of India and BSE to move the expiry of equity derivatives contracts to Tuesdays and Thursdays, respectively.
The move can lead to a potential drop in volumes and impact BSE's market share gains, according to UBS and Goldman Sachs.
($1 = 86.2700 Indian rupees)