India equity benchmarks set to open higher on US trade optimism, steady earnings
India's stock benchmarks are poised to open higher on Tuesday, after snapping a five-session losing run in the last session, as trade-related optimism and steady early earnings from TCS and HCLTech aided sentiment.
Gift Nifty futures were trading at 25,914.5 points as of 7:54 a.m. IST, indicating that the Nifty 50 could open above Monday's close of 25,790.25.
Both benchmarks gained about 0.4% each on Monday as expectations grew that the India-U.S. trade talks could regain momentum after a U.S. envoy said that New Delhi and Washington would discuss trade issues in a call later in the day.
The comments follow a week of differing accounts from India and the U.S. over why the trade pact stalled last year. The U.S. currently levies tariffs of up to 50% on Indian goods, and President Donald Trump has warned they could rise further.
On Monday, German Chancellor Friedrich Merz floated a possibility that the European Union and India could sign a landmark free trade agreement by the end of January, boosting risk appetite.
"Sentiment improved after the U.S. ambassador's comments on ongoing efforts over the India-U.S. trade deal, while buying emerged at lower levels after five days of continuous selling," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Domestic earnings season got off to a stable start, with the country's top IT company TCS posting a slim quarterly revenue beat in the December-quarter on AI demand and growth in the North America market after two years.
The No.3 software services company by revenue, HCLTech, also registered a revenue beat and narrowed its annual revenue growth forecast.
Meanwhile, domestic retail inflation accelerated to 1.33% in December from 0.71% in November, government data showed.
The print, below the Reserve Bank of India's target range of 2%-6%, could allow the central bank to cut key interest rates at its next policy meeting on February 6.
STOCKS TO WATCH
** NLC India board gives in-principle nod to list renewables unit through dilution of equity stake of up to 25% in one or more tranches through a public offer
** Sical Logistics receives 40.38 billion-rupee ($447.8 million) order from South Eastern Coalfields
** GTPL Hathway posts higher revenue and profit for the quarter ended December 31
** Anand Rathi Wealth posts a 30% rise in December-quarter consolidated net profit
** Kalpataru says its pre-sales for the third quarter is down 14% year-on-year, while collections are up 17%
($1 = 90.1840 Indian rupees)
