Indian markets are likely to consolidate further on Wednesday while trends in SGX Nifty suggest a negative opening for benchmark indices.

On Tuesday, the BSE Sensex ended at 39,044.35, up 287.72 points or 0.74%. The 50-share index Nifty was at 11,521.80, adding 81.75 points or 0.71%.

Most Asian shares rose on Wednesday, extending a rally driven by upbeat Chinese and US economic data, but the dollar, US yields and gold held steady as investors awaited the Federal Reserve's view on the economy at its policy meeting.

Following robust industrial output and retail sales data from China and higher US factory production investors are focusing on the Fed's policy statement due Wednesday, the first since Chair Jerome Powell announced an increased tolerance for higher inflation.

The Fed is due to announce its decision at 1800 GMT Wednesday, followed by a news conference by Powell. The Fed meeting comes as US lawmakers remain at an impasse over a new stimulus package amid lingering concerns about the recovery of the world's largest economy from the coronavirus pandemic.

Back home, Life Insurance Corporation of India (LIC) is planning a gradual sale of its stake in IDBI Bank, According to a Mint report. In January 2019, India’s largest insurer bought 44% stake in IDBI Bank for 21,624 crore, saving it from collapse. After the stake purchase, LIC holds 51% in the bank.

No-frill carrier SpiceJet Limited on Tuesday reported a consolidated loss of 600.52 crore for the June quarter, primarily due to muted travel demand following the coronavirus outbreak. The airline had reported a profit of 262.89 crore during the same period of the previous year.

IT firm Hexaware Technologies on Tuesday said market regulator Sebi has allowed extension of closure of its delisting offer to 16 September. The voluntary delisting process of Hexaware Technologies from the BSE and the NSE had started on September 9. The delisting offer with a floor price of 264.97 per share was slated to close on September 15.

Private sector lender Lakshmi Vilas Bank on Tuesday said that the mutual due diligence for its deal with Clix Group is “substantially complete". “We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps," the bank said in a regulatory filing. The bank has shortlisted three firms for a valuation exercise and is likely to finalise one over the next week, said a person aware of the matter.

In the currency market, the yen touched a two-week high of 105.26 per dollar as traders bet that the Fed acting on a more accommodative approach to inflation could weaken the greenback.

The euro was down less than 0.1% to buy $1.1838, while the dollar index, which tracks the greenback against a basket of six major rivals, was treading water at 93.092.

The yield on benchmark 10-year Treasury notes US10YT was unchanged from Tuesday's close at 0.6789%, and spot gold held steady at $1,955.48 per ounce.

In contrast to the muted activity elsewhere, oil prices jumped as a hurricane disrupted US offshore oil and gas production and as US stockpiles fell.

Global benchmark Brent crude rose 0.79% to $40.85 per barrel and U.S. West Texas Intermediate crude ticked up 1.02% to $38.67 a barrel.