Indian stock markets are likely to be range-bound on Wednesday while trends in SGX Nifty suggest a soft opening for domestic benchmark indices. 

On Tuesday, the BSE Sensex ended at 61,716.05, down 49.54 points or 0.08%. The Nifty was at 18,418.75, down 58.30 points or 0.32%.

Asian shares advanced and US long-dated bond yields edged up to a five-month high on Wednesday on rising optimism about the global economy and corporate earnings while the yen slipped to a four-year low on the dollar.

Japan’s Nikkei rose 0.8% while MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, led by 0.9% gains in Australia.

In New York, the benchmark S&P 500 index gained 0.74% to finish just 0.4 percent below its early September record close while the CBOE market volatility index fell 0.6 point after earlier hitting 15.57, its lowest level since mid-August.

The positive mood saw US bond yields rising further, with the 10-year US Treasuries yield climbing to 1.662% , a high last seen in May. Shorter yields dipped, however, with the two-year yield slipping to 0.404% from Monday’s peak of 0.448% as traders took profits for now from bets that the US Federal Reserve will turn hawkish at its upcoming policy meeting in early November.

In India, among major companies, Havells India, Tata Communications, L&T Holding Finance, Angel Broking, Just Dial, and Shoppers Stop will release their September quarter results today.

Reliance Retail Ventures Ltd (RRVL) on Tuesday acquired 52% stake in fashion designer Ritu Kumar’s Ritika Pvt. Ltd. Ritu Kumar's business includes four fashion brand portfolios -- Label Ritu Kumar, The third RI Ritu Kumar, aarké and Ritu Kumar Home & Living -- and cumulatively retails out of 151 point of sales globally.

India’s largest power generation utility NTPC Ltd is looking to acquire around 5% in Power Exchange India Ltd (PXIL), promoted by National Stock Exchange of India Ltd (NSE) and National Commodity & Derivatives Exchange Ltd (NCDEX).

Meanwhile, investors expect the US Federal Reserve to announce tapering of its bond-buying and money markets futures are pricing in one rate hike later next year.

In the currency market, rising US yields helped to boost the U.S. dollar to a four-year high against the yen at 114.585 per dollar.

In addition to US yields, the yen was dented by expectations of a wider trade deficit in Japan due to rising oil prices and on views the Bank of Japan will stick to loose monetary policy even as other central banks move to tighten their policies.

The Chinese yuan held firm, trading at 6.3760 per dollar in the offshore trade, near Tuesday’s 4-1/2-month high of 6.3685. The euro was steadier at $1.1643.

Oil prices eased slightly in Asia but held near multi-year peaks as an energy supply crunch persisted across the globe.

US crude futures traded at $82.65 per barrel, down 0.4% on the day but near Monday’s peak of $83.18, its highest level since 2014.