India shares seen higher on trade deal optimism, IT stocks in focus

Indian equity markets are set for a slight rise driven by trade deal optimism. The potential for renewed foreign inflows following a US-India agreement, which reduced export tariffs, is enhancing market sentiment despite concerns over weakness in IT stocks, triggered by a global tech sell-off. Early indicators show a positive opening for the Nifty 50, suggesting it may rise above its previous close. Recent gains in the Nifty and Sensex, which have appreciated nearly 4% over the last three sessions, reflect this optimism. However, the decline in the Nifty IT Index—around 6%—adds caution. Attention is shifting toward the Reserve Bank of India's upcoming policy decision, with an expectation of unchanged interest rates amidst a busy earnings calendar from major companies.