India’s benchmark indexes are poised to open higher on Tuesday, as lower oil prices and sustained foreign inflows helped sentiment.
The Gift Nifty futures were trading at 24,563.5 as of 8:05 a.m. IST, indicating the Nifty 50 above Monday’s close of 24,461.15.
Ather Energy will be in focus ahead of its stock market debut on Tuesday.
The e-scooter maker’s $352 million IPO was fully subscribed last week.
After hitting four-year lows in the previous session, oil prices steadied at around $61 per barrel following OPEC+’s decision to accelerate output increases.
Lower oil prices are a positive for domestic oil marketing companies and sectors such as paint and tyre manufacturers that use crude as a key raw material. It also benefits the broader economy, as India is a net oil importer.
Other Asian markets were muted, with the MSCI Asia ex-Japan index trading flat.
Wall Street equities closed lower overnight as investors assessed U.S. President Donald Trump’s latest announcement of a 100% tariff on movies produced outside the U.S.
Investors now await the U.S. Federal Reserve’s policy announcement on Wednesday, in which the central bank is largely expected to keep interest rates unchanged.
India’s equity benchmarks rise on trade optimism
However, commentary on the future rate trajectory and the economy will be crucial for fund flows and sectors with high exposure to the U.S.
Expectations of an imminent bilateral trade deal between India and the U.S., the dollar softening and steady earnings from large-caps such as Reliance Industries and banks have already spurred foreign inflows worth 406.45 billion rupees ($4.82 billion) over the last 13 sessions, the longest streak of inflows in two years.
India’s Nifty 50 has risen 7.2% over the same period and is trading 6.9% below the record high levels hit on September 27, 2024.
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