Market Sentiment Lifted by US Rate Cut Bets and Trade Talk Optimism

Equity benchmarks are poised for a higher opening, extending their rally on the back of recent tax cuts and growing expectations of US rate cuts. Hints of progress in US-India trade negotiations further buoyed investor sentiment, with Gift Nifty futures signaling a strong start for the Nifty 50.

Foreign portfolio investors returned to net buying in Indian markets, injecting ₹2,050 crore ($232.5 million) on Tuesday. Domestic institutional investors continued their 11-session buying spree, while IT stocks—favored by FPIs—surged 2.8%.

Geopolitical tensions resurfaced as President TRUMP pushed for aggressive tariffs on China and India, though he simultaneously hinted at trade facilitation with New Delhi. Prime Minister Modi affirmed efforts to conclude negotiations swiftly, setting the stage for a critical dialogue with Washington.