India’s stock benchmarks set to open higher on US trade talk hopes, rate cut bets

India’s equity benchmarks are set to open higher on Wednesday, extending their multi-session winning run fuelled by recent tax cuts, while rising bets for US rate cuts and hopes of progress in trade talks with Washington lifted sentiment.

Gift Nifty futures were trading at 25,027 points as of 08:07 a.m. IST, indicating that the benchmark Nifty 50 will open above Tuesday’s close of 24,868.6.

The index has gained about 1.2% in the last five sessions, and is trading about 5.4% below the record high hit on September 27, 2024.

Geopolitical risks, however, resurfaced after US President Donald Trump urged European Union officials to impose 100% tariffs on China and India as part of a strategy to pressure Russia, according to a US official and an EU diplomat.

But, Trump also indicated that the US could boost trade with India, citing ongoing discussions to reduce barriers.

Prime Minister Narendra Modi said he is looking forward to speaking with Trump, and that the two countries were working to conclude the trade negotiations at the earliest.

On the flows front, foreign portfolio investors turned buyers in India with net inflows of 20.50 billion rupees ($232.5 million) on Tuesday, per provisional data.

Domestic institutional investors extended their buying streak to an 11th consecutive session.

IT stocks, where FPIs hold relatively larger stakes outside financials, rose 2.8% on Tuesday, led by a 5% jump in Infosys after the company said it would consider a share buyback on September 11.