Indian stocks set to extend gains on US trade deal; tech sell-off may cap upside
- Gift Nifty futures were trading at 25,803 points
BENGALURU: India’s equity benchmarks are set to extend gains on Wednesday on U.S.-India trade deal optimism, though a global sell-off in software stocks on concerns over artificial intelligence disruption may weigh on IT stocks and limit broader gains.
Gift Nifty futures were trading at 25,803 points, as of 7:56 a.m. IST, indicating that the benchmark Nifty 50 index will open above Tuesday’s close of 25,727.55.
The benchmark Nifty 50 and Sensex jumped about 2.5% each on Tuesday to notch their best daily gains in nine months as the India–U.S. trade deal removed a key market overhang.
U.S. President Donald Trump on Monday a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for New Delhi halting Russian oil purchases and lowering trade barriers.
According to provisional data, foreign investors purchased shares worth 52.36 billion rupees ($579.03 million) on Tuesday, providing relief to markets weighed down by a year of persistent outflows.
Analysts said the U.S. trade deal could attract more foreign investment into Indian equities.
Meanwhile, software stocks fell overnight on Wall Street amid concerns that artificial intelligence could intensify competition.
American-listed shares of Infosys , India’s second-largest software exporter, and smaller rival Wipro dropped 5.6% and 4.8%, respectively.
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