Indian equity markets are likely to open marginally higher on Wednesday after a sharp sell-off in the previous session dragged benchmark indices to their lowest levels in over three months. Early signals from Gift Nifty point to a mildly positive start, but investor sentiment remains cautious amid persistent global uncertainty and continued foreign fund outflows.

On Tuesday, the Sensex and Nifty recorded their steepest single-day fall in more than eight months, weighed down by global trade tensions, weak earnings from heavyweight companies, and sustained foreign selling. Wall Street’s overnight sell-off, driven by renewed tariff fears and geopolitical risks, further dampened risk appetite across global markets.

Foreign portfolio investors remain net sellers, even as domestic institutional buying offers limited support. Technically, the Nifty is hovering near key long-term support levels, raising the possibility of a short-term relief rally, though analysts warn that volatility is likely to persist unless global cues improve.