Indian shares set for higher open on India-US trade optimism, global cues
- The Gift Nifty futures were trading at 25,913 points
Indian shares are poised for a positive start to the week as investors assess the implications of an interim India-U.S. trade framework, while positive global cues are also expected to lend support.
The Gift Nifty futures were trading at 25,913 points, as of 7:53 a.m. IST on Monday, indicating the benchmark Nifty 50 will open above Friday’s close of 25,693.7.
The U.S. and India moved closer to a trade pact on Friday, releasing an interim framework that would lower tariffs, reshape energy ties and deepen economic cooperation as both countries seek to realign global supply chains.
As part of the deal, the United States will reduce tariffs on Indian goods like textiles and apparel, leather and footwear to 18%, while India will also trim or eliminate tariffs on all U.S. industrial goods, and cut duties on a wide range of U.S. farm and food products.
“The India–U.S. trade pact has removed a key overhang (for markets), improved export visibility and triggered a revival in foreign investor interest,” said Ponmudi R, chief executive officer at Enrich Money.
Foreign portfolio investors bought Indian shares worth 19.51 billion rupees ($215.40 million) on Friday, as per provisional data. They have been net buyers of Indian equities in three of the past four trading sessions since India and the U.S. announced a trade deal on Monday.
Asian stocks jumped 2% in early trade on Monday as a resounding win for Japanese Prime Minister Sanae Takaichi whetted appetites for more reflationary policies, while there was widespread investor relief at Wall Street’s last gasp rebound.
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