India stock benchmarks set to open higher on US rate cut bets, trade deal hopes

India’s equity benchmarks are poised to open higher on Monday, after a six-session winning run was halted on Friday, with softer-than-expected September US inflation boosting bets for two additional rate cuts in 2025.

Gift Nifty futures were trading at 25,904 points as of 7:48 a.m. IST, indicating that the benchmark Nifty 50 will open above Friday’s close of 25,795.15.

Expectations of a rebound in domestic earnings and easing global trade worries are aiding sentiment, with analysts expecting bouts of profit taking as Nifty 50 and BSE Sensex approach record high levels.

Other Asian markets opened higher on the day after the US consumer price inflation eased in September, reinforcing hopes that the Federal Reserve will cut rates at its policy meeting on Wednesday and in December.

Lower US rates make emerging markets such as India more attractive to foreign investors.

Meanwhile, top Chinese and US economic officials hashed out the framework of a trade deal for US President Donald Trump and Chinese President Xi Jinping to decide on later this week, US officials said on Sunday.

Back home, both the benchmarks fell about 0.4% on Friday, after gaining about 3% each during a six-session winning run.

The indexes are trading about 1.5% below their record highs hit on September 2024.

Foreign portfolio investors and domestic institutional investors remained net buyers of Indian shares on Friday, bringing in 6.22 billion rupees ($70.8 million) and 1.73 billion rupees, respectively, per provisional data from NSE.