(fxcue news) - Indian shares look set to open higher on Tuesday following strong gains in global markets. The upside, however, may remain limited ahead of the U.S. Federal Reserve's policy decision on Wednesday. Fed officials are expected to hold rates steady and investors would focus on the updated economic projections and Chair Jerome Powell's press conference for clues on the path ahead. Traders are also likely to follow the latest geopolitical developments and assess their impact on asset prices. The Kremlin confirmed that Russian President Vladimir Putin would talk to the U.S. President Donald Trump by phone on Tuesday. Elsewhere, Israel carried out airstrikes in the Gaza Strip, southern Lebanon and southern Syria on Monday, killing at least 10 people. Benchmark indexes Sensex and Nifty rose around half a percent each on Monday while the rupee gained 24 paise to close at 86.81agaisnt the U.S. dollar. Foreign institutional investors (FIIs) offloaded shares worth Rs 4,488 crore on a net basis Monday, while domestic institutional investors (DIIs) were net buyers of shares to the extent of Rs 6,000 crore, as per provisional data. For the year so far, FIIs have been net sellers of shares worth Rs 1.68 lakh crore, while DIIs have net bought Rs 1.83 lakh crore worth of shares. Asian markets were mostly higher this morning, buoyed by renewed optimism over China's economy and data showing a moderate rebound in U.S. retail sales in February. The dollar index was steady while the yield on 10-year U.S. Treasuries was little changed after slipping one basis point to 4.30 percent on Monday. Gold edged up slightly and held above the $3,000 level mark. Oil edged higher for a third straight session, with the outlook for China's economy and geopolitical risk in the Middle East remaining in focus. U.S. stocks rose for a second straight session on Monday after Treasury Secretary Scott Bessent said he is "not worried" about the recent market downturn. Overall gains were limited due to weak economic data and trade uncertainties. Retail sales rose less than expected in February and saw downward revisions for January. Factory activity in New York State plummeted the most in nearly two years in March and homebuilder sentiment dropped to a seven-month low in March, adding to concerns about the economic outlook. A model utilized by the Federal Reserve Bank of Atlanta projected a -2.1 percent contraction in Q1 2025, down from the March 7 estimate of a 1.6 percent contraction. The Dow gained 0.9 percent, the S&P 500 rose 0.6 percent and the tech-heavy Nasdaq Composite edged up by 0.3 percent. European stocks closed higher on Monday after China said it would take measures to revive consumption in the world's second-largest economy. The pan European STOXX 600 surged 0.8 percent. The German DAX climbed 0.7 percent while France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.6 percent.