(fxcue news) - Indian shares may drift lower on Wednesday as investors react to weak global cues and signs of rising domestic inflation. Global sentiment remains fragile due to uncertainty over U.S.-President-election Trump's policy stance and Fed's policy. India's consumer price inflation accelerated in October to the highest level more than a year amid rising food costs, data from the National Statistical Office revealed Tuesday. Consumer prices surged 6.21 percent on a yearly basis in October, faster than the 5.49 percent rise seen in September. The expected rate was 5.81 percent. Further, this was the highest inflation rate since August 2023, when prices had risen 6.83 percent. Separate set of data revealed that India's industrial production expanded strongly in September after a slight fall in the previous month. Industrial production rose 3.1 percent from a year ago, reversing a 0.1 percent fall in August amid heavy rainfall effects. That was above the expected growth of 2.5 percent. Benchmark indexes Sensex and Nifty fell over 1 percent each on Tuesday amid concerns over FII outflows and disappointment stemming from a weak domestic earnings season. Asian markets traded lower this morning, and the dollar extended its post-election rally ahead of the release of U.S. consumer price inflation reading later in the day. Treasury 10-year yields were little changed after surging 12 basis points on Tuesday. Gold traded firm above $2,600 per ounce after hitting nearly a two-month low on Tuesday in the face of a stronger dollar. Oil steadied neared its lowest level this month, as OPEC cut its forecast for global oil demand growth in 2024. U.S. stocks fluctuated before ending slightly lower overnight as investors booked some profits from a post-election rally ahead of closely watched economic data due later in the week. The S&P 500 dipped 0.3 percent to snap a five-session winning streak and log its worst day since Oct. 31 as Treasury yields surged in anticipation that Donald Trump's pledged policies on tariffs will rekindle inflation and keep U.S. interest rates high. The Dow shed 0.9 percent and the tech-heavy Nasdaq Composite slid 0.1 percent. European shares fell sharply on Tuesday as ECB policymakers warned that Trump's protectionist policies would put upward pressure on inflation and hamper global growth. The pan-European STOXX 600 plummeted 2 percent. The German DAX lost 2.1 percent, France's CAC 40 tumbled 2.7 percent and the U.K.'s FTSE 100 gave up 1.2 percent.