Consumer inflation (CPI) and Industrial Production (IIP) numbers for May and April, respectively will be the key data points that investors will track on Wednesday.
Besides, global developments, oil prices and rupee value against the dollar will also be watched.
On Tuesday, the benchmark S&P BSE Sensex rose 166 points, or 0.42 per cent, to 39,950 while the broader Nifty50 index added 43 points, or 0.36 per cent, to 11,966.
The rupee recovered by 21 paise to 69.44 against the US dollar.
Asian share markets got off to a cautious start on Wednesday after US President Donald Trump said he was holding up a trade deal with China till Beijing agrees to four or five major points.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up a slim 0.1 per cent while Japan’s Nikkei traded flat. Australian shares were up 0.3 per cent.
On Wall Street, the indices settled marginally lower during the overnight trade on Tuesday.
The Dow Jones Industrial Average settled 14 points lower at 26,049 while the S&P500 ended at 2,886, down 1 point. The Nasdaq also closed 0.6 points lower at 7,822.
In the commodities market, oil prices fell on Wednesday, weighed down by a weaker oil demand outlook and a rise in the US crude inventories. Brent crude futures were down 1.22 per cent at $61.53 a barrel by 6:00 am.