India's equity benchmarks are set to open higher on Wednesday, tracking gains in their Asian peers after the U.S. announced a trade deal with Japan, fuelling expectations of more to come.

FPIs offloaded Indian equities worth Rs 3,548 crore on July 22, while DIIs stepped in with net purchases of Rs 5,239 crore.

India is close to finalising an interim free trade agreement with the United States, sources told NDTV Monday evening, and said an announcement is expected by September or October.

India's equity benchmarks ended little changed on Tuesday, as the post-earnings surge in Zomato parent Eternal was offset by a drop in Reliance Industries and uncertainty over a trade deal with the United States.

Indian farmers continue to resist the US push for greater access to the country’s agriculture and dairy sectors. They fear that any concessions, particularly in cereals and pulses, will undermine their livelihood amid what are already difficult circumstances.

Indian equity benchmarks kicked off the week on a positive note, boosted by positive sentiment due to the positive earnings results from the banking majors, while investors are also bracing themselves for updates regarding the India-US Trade deal.

Farmers also warned that if India signs a trade deal with the US, the latter could import raw sugar from Brazil, process it in the US, and then export it to India—hurting the domestic sugar industry