Indian equity benchmarks are tracking a bullish signal from the Gift Nifty futures index, setting the stage for a higher open on Tuesday.
The forward indicator suggests a rebound for the Sensex and Nifty 50, which have recently traded with volatility linked to global geopolitical developments.
This shift in sentiment follows a subdued opening on Monday, when Indian indices tracked weakness in Asian markets and US stock futures.
Investor caution had returned amid renewed escalation in US-Iran relations, weighing on risk appetite across emerging markets.
The Gift Nifty's upward movement indicates that traders are pricing in a de-escalation of tensions, potentially paving the way for a return to domestic growth themes.
The reversal highlights the sensitivity of Indian equities to external geopolitical shocks and the speed at which sentiment can shift when risk premiums compress.