Indian benchmark indices are likely to open lower on Wednesday following negative sentiment in the global markets.

Asian shares declined after US Federal Reserve policymakers tempered expectations of further rate cuts. Moreover, oil prices rose over 1 percent today after US crude stockpiles fell more than expected.

Indian benchmark indices rose nearly 1 percent snapping a two-day losing streak led largely by bluechip stocks. The broader NSE Nifty closed up 0.83 percent at 11,796.45, while the benchmark BSE Sensex ended 0.8 percent higher at 39,434.94.

At 7.14 AM, SGX Nifty an early indicator of the Nifty 50's trend in India, traded 26.5 points, or 0.22 percent, lower, pointing to a negative start for the Sensex and the Nifty 50.

Stocks to watch: DHFL, Reliance Power, Persistent Systems in focus.