The Nifty50 is likely to open flat on Wednesday following muted trend seen in other Asian markets. The Nifty closed 89 points lower at 10,710 on Tuesday.

Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 2.5 points or 0.02 percent. Nifty futures were trading around 10,724-level on the Singaporean Exchange.

US stocks fell on Tuesday as a sharp escalation in the trade dispute between the United States and China rattled markets and put the Dow Jones Industrial Average back in negative territory for the year, said a Reuters report.

Stocks in Asia rebounded from recent losses on Wednesday as investors sought bargains, a day after the specter of a US-China trade war drove down bond yields, and share and commodity prices, it said.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent. Japan's Nikkei gained 0.2 percent, South Korea's KOSPI rose 0.7 percent, and Australian stocks were 0.8 percent higher.