Indian equity benchmarks are poised to open higher on Tuesday, tracking a bullish signal from the Gift Nifty futures index.
The forward indicator suggests a rebound for the Sensex and Nifty 50, which have recently traded with volatility amid shifting global risk sentiment.
The Gift Nifty is trading at a premium, indicating that offshore investors are positioning for a positive start to the domestic session.
This technical setup provides a counterweight to the cautious bias that has characterized recent trading, as market participants weigh domestic liquidity against external headwinds.
Despite the positive technical signal, investor sentiment remains guarded due to renewed geopolitical tensions ahead of the next round of US-Iran negotiations.
The potential for escalation in the Strait of Hormuz continues to cast a shadow over global risk assets, including emerging market equities.