India’s equity benchmarks are set to open higher on Tuesday, building on gains from the previous session, led by optimism around proposed goods and services tax (GST) reforms and signs of a potential peace agreement between Russia and Ukraine.
Gift Nifty futures were trading at 24,963.5, as of 8:03 a.m. IST, indicating that the Nifty 50 will open above Monday’s close of 24,876.95.
In the previous session, both the Nifty and Sensex jumped about 1% after the government outlined sweeping changes to the GST framework, bolstering expectations of stronger consumption and corporate earnings.
The reform push comes alongside a more constructive geopolitical backdrop. Ukrainian President Volodymyr Zelenskiy said security guarantees for his nation could be finalised within 10 days following talks with U.S. President Donald Trump and European leaders.
Trump later said he had spoken with Russian President Vladimir Putin and was working to arrange meetings with Zelenskiy, aiming to hold a trilateral summit.
Wall Street equities were muted overnight ahead of the U.S. Federal Reserve’s Jackson Hole summit later this week, while Asian markets traded lower.
“Indian market is drawing strength from multiple positives such as the potential GST reforms, S&P upgrade and easing geopolitical nerves after the U.S.-Russia presidential meeting,” said Trivesh D, chief operating officer at Tradejini.
Analysts warned that uncertainty surrounding India-U.S. trade talks, which could be delayed, may cap near-term gains.
Foreign portfolio investors (FPI) snapped a four-session selling streak in Indian shares on Monday, purchasing stocks valued at 5.51 billion rupees ($63.08 million).
Domestic institutional investors (DII) purchased stocks worth 41.04 billion rupees ($470 million) and marking their 30th consecutive session of net inflows.
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