(Reuters) -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)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy)
