May 6 (Reuters) - Indian shares are set to open higher on Wednesday, aided by a drop in oil prices after U.S. President Donald Trump indicated a possible peace deal with Iran may be reached.

GIFT Nifty futures GIFc1 were trading at 24,290 points, as of 7:55 a.m. IST, indicating that the benchmark Nifty 50 .NSEI would open 1% above Tuesday's close of 24,032.80.

Brent crude LCOc1 dropped to $108 a barrel from about $115 earlier this week, after Trump said he would pause "Project Freedom", an operation to help escort ships through the Strait of Hormuz, citing "great progress" toward a comprehensive agreement with Iran.

Tehran has not reacted to Trump's comments on the negotiations yet.

Other Asian markets .MIAPJ0000PUS jumped 2.3% to a record high, while Wall Street equities rose overnight, with the S&P 500 .SPX and Nasdaq .IXIC notching all-time closing high levels. MKTS/GLOB

"Global sentiment has improved on signs of de-escalation in the Middle East, and overall, the market appears to be entering the session with a positive bias," said Hariprasad K, founder of Livelong Wealth.

"But the sustainability of the move will depend on earnings delivery, stability in crude prices, and currency movement. The interplay between global risk sentiment and domestic fundamentals will shape the intraday trajectory."

Among stocks, Larsen & Toubro LART.NS will be in focus after posting a quarterly profit drop amid the Middle East conflict, which has disrupted projects. The construction major expects revenue growth to moderate in the financial year 2027.

Two-wheeler maker Hero MotoCorp HROM.NS could rise after it beat March quarter profit estimates, driven by strong domestic demand.

Both the stock benchmarks, Nifty 50 and Sensex .BSESN fell about 0.4% each, and the rupee hit an all-time low on Tuesday, on higher crude prices. .BO

Foreign portfolio investors (FPI) sold domestic stocks worth 36.22 billion rupees ($380.54 million) on a net basis on Tuesday, while domestic institutional investors (DII) bought 26.03 billion rupees worth of stocks.

STOCKS TO WATCH

** Coforge COFO.NS reports fourth-quarter profit that more than doubled, helped by a rise in order intake

** United Breweries UBBW.NS posts 4.3% rise in March quarter profit, and recommends a dividend of 10 rupees per share

** SRF SRFL.NS reports rise in March quarter profit, approves an enhanced capital outlay for facilities for fourth-generation refrigerants in Odisha

** ICICI Bank ICBK.NS receives an administrative warning letter from the markets regulator related to its depository participant operations and says it is taking corrective action

($1 = 95.1800 Indian rupees)