Indices may react to US President Donald Trump's tweet last evening saying that India has long had a "field day" imposing tariffs on American products, which is "no longer acceptable" to the US.
Investors will also keenly watch Federal Reserve Chair Jerome Powell's testimony to the US Congress later in the day for possible future rate cut hints.
Apart from these, stock-specific action will be closely monitored.
Tata Consultancy Services (TCS) will be in focus after it announced its June quarter numbers post market hours on Tuesday. The IT bellwether posted a net profit of Rs 8,131 crore, a 10.8 per cent rise on a year-on-year (YoY) basis. However, a stronger rupee proved to be a drag on the operating margin, which fell 90 basis points sequentially.
In another key development, IndiGo promoters Rahul Bhatia and Rakesh Gangwal have made serious allegations against each other, forcing the Securities and Exchange Board of India (Sebi) to intervene. Gangwal, who holds 36.68 per cent, has sought permission to hold an extraordinary general (EGM) meeting, alleging that the company has participated in objectionable related-party transactions (RPTs) and has not complied with corporate governance standards.
On Tuesday, markets pared losses and ended the session on a flat note. The Sensex closed 10.25 points higher at 38,731 levels, while the broader Nifty50 settled 2.7 points lower at 11,556 levels.
The rupee settled lower at 68.55 against the US dollar.
In the results corner, GTPL Hathway, Himachal Futuristic Communications, and Inditalia Refcon are some of the companies that are scheduled to announce their Q1FY20 results today.
In the global cues, Asian shares inched ahead on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.2 per cent while South Korea climbed 0.6 per cent. However, Japan's Nikkei lagged with a loss of 0.15 per cent.
Wall Street was dully circumspect ahead of the Powell testimony, with the Dow ending Tuesday down 0.08 per cent, while the S&P 500 added 0.12 per cent and the Nasdaq was up 0.54 per cent.