India stock benchmarks set to open higher on trade deal, US reopening hopes
India's equity benchmarks are set to open higher on Wednesday, buoyed by signs of progress in trade negotiations with the U.S. and a likely end to the U.S. government shutdown.
Gift Nifty futures were trading at 25,979 points as of 7:50 a.m. IST, indicating that the Nifty 50 will 1% open above Tuesday's close of 25,694.95.
Both the benchmark indexes gained about 0.5% in the previous session, lifted by optimism over a potential India-U.S. trade deal and as the U.S. Congress looked set to end the federal shutdown.
On Tuesday, U.S. President Donald Trump said Washington was "close" to reaching a trade deal with India to bring down tariffs on Indian goods.
Indian imports to the U.S. currently face 50% tariffs, primarily due to a penalty duty of 25% over New Delhi's purchase of Russian oil.
Other Asian markets rose 0.3% on the day and Wall Street equities gained overnight as investors looked forward to the reopening of the U.S. government. [MKTS/GLOB]
Meanwhile, investors are awaiting India's consumer inflation data later in the day.
According to the median forecast in a Reuters poll of economists, retail inflation is estimated to have plunged to at least a 10-year-low in October on sustained drop in food prices.
"Rising expectations of a India-U.S. trade deal are positive for export-linked sectors and overall market confidence," said Siddhartha Khemka, head of research of wealth managemetn at Motilal Oswal Financial Services.
"Near-term market direction will hinge on the ongoing earnings season and progress on the trade discussions, with any constructive development on the trade front bolstering market momentum."
STOCKS TO WATCH
** Tata Power posts lower quarterly profit on plant shutdown
** Biocon reports net profit in the September quarter compared to year-ago loss
** Bharat Forge's unit receives orders worth more than 2.5 billion rupees ($28.4 million) from the Defence Ministry for the supply of underwater system
** Stock broker Groww's parent Billionbrains Garage Ventures will debut on stock exchange after its $754 million IPO was subscribed 17.6 times last week
($1 = 87.8950 Indian rupees)
