Indian stock benchmarks set to open higher on improving earnings outlook

India’s equity benchmarks are poised to open higher on Monday, with the outlook remaining positive on improving earnings, while fading hopes of an imminent US interest rate cut weighed on global sentiment.

The Gift Nifty futures were trading at 26,008 points, as of 7:40 a.m. IST, indicating that the Nifty 50 could open above Friday’s close of 25,910.05.

Both Nifty and Sensex rose about 1.6% last week, as improving corporate earnings and a key state election result aided the buying interest.

The gains were led by IT and pharmaceutical stocks, as the U.S. government’s reopening lifted hopes for economic clarity.

“Sentiment remains strong for the Nifty 50 with the potential to move towards 26,200/26,350 levels in the short term,” said Rupak De, a senior technical analyst at LKP Securities.

The Nifty 50 is currently trading 1.4% below the all-time high level of 26,277.37, touched in September 2024.

“Though the Nifty has found resistance around 26,000, the magnitude of last week’s recovery signals the likelihood of an immediate upside move.”

Asian markets were mixed, after Japan’s economy contracted for the first time in six quarters due to the U.S. tariff hit.

Fading expectations of a U.S. rate cut in December following hawkish comments from key Federal Reserve policymakers also weighed on sentiment.

With the domestic earnings season coming to an end, the market moves back to positive updates related to the India-U.S. tariff resolution to rise to record high levels, said two analysts.

Domestic sugar companies, including Balrampur Chini, EID Parry, Dalmia Bharat and Shree Renuka Sugar, could rise after the government allowed sugar exports of 1.5 million metric tons in the new season.

The market’s reaction to Tata Motors Passenger Vehicles is also in focus after the company cut its fiscal year 2026 margin forecast for Jaguar Land Rover.