Mumbai: Indian stock markets are likely to be volatile on Wednesday, while a fall in crude oil prices may offer some respite from the heavy sell-off seen in the last two days of trade.

Stocks in Asia opened mixed as investors await the outcome of the US Federal Reserve’s policy meeting, with the market widely expecting a 25 basis points cut in interest rates. Treasuries were flat after recent gains.

Equities edged lower in Japan, while Hong Kong and South Korea traded flat. Futures on the S&P 500 were little changed. Yield on the ten-year Treasury note was at 1.81% after retreating for a second session on Tuesday, when the Fed acted to calm money markets. Oil prices extended a retreat as Saudi Arabia announced resuming operations at the plant damaged in an attack over the weekend.

As US policy makers get ready to decide on interest rates, investors are also trying to gauge the risk of a potential oil shortage weighing on the global economy. Meanwhile, concerns linger about trade tensions, with US and Chinese working-level negotiators set to resume talks ahead of a meeting of top officials in October.

Oil prices extended their losses from the previous session early on Wednesday, after Saudi Arabia’s energy minister said the kingdom will restore lost oil production by the end of the month. Brent crude oil futures fell 36 cents, or 0.6%, to $64.19 a barrel in early trade, after tumbling 6.5% the previous session.

Back home, the markets regulator on Tuesday barred Gautam Thapar, former chairman of CG Power and Industrial Solutions Ltd, and three former officials of the company from the securities market after a preliminary probe found them guilty of various irregularities. The Securities and Exchange Board of India (Sebi) also asked BSE to appoint an independent auditor to conduct a forensic audit of the books of CG Power beginning 2015-16 and report in six months.

We Co.’s decision to postpone its much-awaited initial public offering (IPO) will also likely delay a plan to acquire majority control of its Indian affiliate to next year, said two people familiar with the development. Earlier this year, We Co. offered to buy a 70% stake in WeWork India in a cash and stock deal valued at $2.75 billion, three years after it entered the country through a brand franchise agreement.

Bloomberg contributed to the story