Indian stocks expected to open higher on revival in foreign fund flows, sentiment improves

Indian equity benchmarks were poised for a higher start on Tuesday with signs that foreign capital inflows are returning to the market after months of net selling following the long awaited trade agreement with the United States.
Futures indicated the benchmark Nifty 50 would open above Monday’s close as overseas investors bought Indian shares worth 22.55 billion rupees on Monday and have injected around $1.3 billion into Indian equities so far in February, breaking a three-month streak of outflows. The Nifty finished 0.7 percent higher on Monday, marking its strongest weekly advance in three months. The interim trade framework is expected to ease tariff barriers and strengthen economic cooperation, lifting investor confidence and sentiment. Broader market segments also saw gains in the previous session, supported by positive global cues after a decisive electoral win in Japan.
Investors will watch key stock movements following the trade deal and broader macro developments.