India’s equity benchmarks are likely to open higher on Tuesday, supported by prospects of an India-European Union trade deal and hopes that the US may lift tariffs linked to India’s Russian oil purchases.
Gift Nifty futures were trading at 25,197, as of 7:53 a.m. IST, indicating that the Nifty 50 could start above Friday’s close of 25,048.65. Last week, the index recorded its steepest weekly loss in four months.
Indian markets were closed on Monday.
U.S. Treasury Secretary Scott Bessent on Friday signalled the potential removal of additional 25% tariffs on India following a sharp reduction in Indian imports of Russian oil.
Trade tensions between India and the United States escalated in August when U.S. President Donald Trump doubled tariffs on Indian goods to 50%, including a 25% levy in response to India’s imports of Russian crude.
Meanwhile, India and the European Union have concluded negotiations on a long-coveted trade deal that will be announced on Tuesday. Both sides hailed the deal as historic as they contend with strained US ties.
The gains in the market could be capped by concerns over continued foreign fund outflows, weakness in rupee against dollar, and fresh global trade jitters.
The Nifty 50 fell 2.5% last week, while the BSE Sensex dropped 2.4%.
Foreign investors sold Indian shares worth 41.13 billion rupees ($448.53 million) on Friday, as per provisional data. They have offloaded $3.72 billion worth of shares so far in January, setting stage for biggest monthly outflows since August 2025.
Meanwhile, Trump said on Monday that he was increasing tariffs on South Korean imports into the U.S. related to autos, lumber and pharmaceuticals to 25%, while criticizing the ally’s legislature for failing to enact a trade deal with Washington.
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