Indian benchmarks set to open higher after Modi agrees to trade negotiations with Trump
India's benchmark indexes are set to open higher on Friday after U.S. President Donald Trump said the Indian Prime Minister offered to talk about easing tariffs, easing some worries over reciprocal duties.
The GIFT Nifty futures were trading at 23,195 as of 08:30 a.m. IST, indicating that the blue-chip Nifty 50 will open above Thursday's close of 23,031.4.
The Nifty has opened either flat or marginally positive in each of the last seven sessions but failed to sustain gains.
Both the benchmarks - Nifty 50 and BSE Sensex - have lost about 3% each over the seven sessions on sustained foreign selling and mounting concerns around U.S. trade policy.
Foreign portfolio investors have sold Indian shares worth $11.23 billion so far this year.
Indian PM Narendra Modi offered to talk about easing tariffs, buying more U.S. oil and gas, combat aircraft and concessions, Trump said on Thursday after he met Modi at the White House, setting the stage for trade negotiations.
Trump is devising plans for reciprocal tariffs on every country taxing U.S. imports, heightening the prospects of a global trade war.
India will be impacted by reciprocal tariffs due to the pronounced tariff differentials with the U.S., according to several brokerages.
However, Trump's tariffs will not be imposed right away.
Howard Lutnick, Trump's pick for commerce secretary, said the administration would address each affected country and studies on the issue would be completed by April 1.
Other Asian markets gained on relief that the reciprocal tariff plan will not be implemented immediately.
Wall Street equities gained after an inflation reading fuelled hopes that the Federal Reserve's preferred measure of inflation might be cooler than anticipated. [MKTS/GLOB]
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