Indian equities eye further gains on US trade pact, tech-led sell-off may cap upside

Indian equity benchmarks are expected to extend their recent rally on Tuesday, supported by optimism around a trade agreement between India and the United States, even as a sharp sell-off in technology stocks threatens to limit broader upside.

The NSE Nifty 50 and the BSE Sensex are set to open higher after posting gains in the previous session, tracking positive cues from the trade front. Market sentiment has improved following signals that negotiations between New Delhi and Washington have progressed, raising hopes of smoother market access and tariff relief.

That optimism, brokers said, could be tempered by pressure on technology shares after overnight losses in US tech stocks. Weak global cues from the sector are likely to weigh on Indian IT majors, which earn a large share of revenue from North America and tend to mirror moves on Wall Street.

Asian markets were mixed in early trade, with investors weighing the potential benefits of the India US deal against concerns over rich valuations and sector specific risks. Crude oil prices remained range-bound, offering little immediate direction to domestic markets.

Analysts cautioned that while trade related news may support sentiment in the near term, sustained gains would depend on earnings visibility and stability in global markets. With technology stocks under stress, the rally could remain selective rather than broad based.

Call to action
For a clearer read on how global trade signals and sector trends may shape Indian markets through the week, track today’s opening and sectoral moves closely.