India's equity benchmarks may open higher on UK trade deal, earnings optimism
The Gift Nifty futures were trading at 25,298 points as of 7:57 a.m. IST, indicating that the Nifty 50 will open above Wednesday's close of 25,219.9.
Broader Asian markets opened firm, tracking overnight gains on Wall Street after the U.S. and Japan announced a bilateral trade pact, which fuelled hopes of additional deals and lifted global risk appetite.
Expectations that India and UK will sign a free-trade agreement on Thursday during Prime Minister Narendra Modi's visit to Britain further aided sentiment.
The deal is expected to reduce tariffs on goods such as textiles, whisky and automobiles, while expanding market access for businesses.
'A risk-on sentiment is prevailing across Asian markets, buoyed by favourable global cues following the announcement of a bilateral trade deal between the U.S. and Japan and supported by optimism surrounding the earnings season,' Bajaj Broking Research said.
On the domestic front, Infosys will be in focus after India's second-largest IT services company raised the lower end of its full-year revenue guidance following a better-than-expected June quarter.
Investors will also track market reaction to results from Dr Reddy's Laboratories and Tata Consumer Products.
Dr Reddy's narrowly missed profit estimates due to pricing pressure and heightened competition in North America, while Tata Consumer posted a weak quarter as elevated tea and coffee prices weighed on margins.
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