(fxcue news) - Indian shares look set to open a tad higher on Wednesday as a measure of calm returned to global markets and the government offered relief on long-term capital gains tax for immovable property, by giving taxpayers the option to choose between two tax rates. Focus shifts to the Reserve Bank of India's monetary policy decision due Thursday, with economists expecting a status quo on rates in view of inflation concerns and economic growth remaining steady. Benchmark indexes Sensex and Nifty gave up sharp early gains to end modestly lower on Tuesday. The rupee closed down 0.1 percent at 83.9525 against the dollar. Asian stocks were mostly firmer this morning, with Japanese markets experiencing heightened volatility. The yen slipped from a seven-month high, the dollar steadied, and Treasury yields ticked higher as markets scaled back wagers on an intra-meeting emergency rate cut from the Federal Reserve. Gold traded weak at $2,385 an ounce, while oil prices fluctuated amid concerns about waning global demand and fears of supply disruptions as a result of increased tensions in the Middle East. U.S. stocks rebounded overnight after three straight days of losses. Investors hunted for bargains as Caterpillar and Uber reported solid earnings and Fed officials clarified the U.S. is not headed for a recession. In economic news, U.S. trade gap narrowed less than expected in June and the Atlanta Fed raised its third quarter growth projection for the U.S. economy. The Dow gained 0.8 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both added around 1 percent. European stocks ended mixed on Tuesday after a volatile session. The pan European STOXX 600 edged up 0.3 percent after logging its steepest three-day decline since June 2022 the previous day. The German DAX finished marginally higher and the U.K.'s FTSE 100 rose 0.2 percent while France's CAC 40 shed 0.3 percent.