Indian equity benchmarks are set to open on a flat-to-positive note Tuesday, though traders are bracing for heightened volatility.

The session coincides with the settlement of both monthly and weekly derivative contracts on the National Stock Exchange (NSE), a structural event that typically amplifies intraday price swings as positions are squared off.

The Nifty 50 and Sensex are tracking higher following Monday’s gains, where the benchmark Nifty rose 0.44% and the Sensex added 360.85 points to close at 77,163.75.

That positive momentum reflects a tentative shift in investor sentiment, with domestic buyers stepping in despite lingering external headwinds.

Geopolitical tensions continue to cast a shadow over global risk appetite, sending mixed signals to emerging markets.

However, analysts suggest that domestic sentiment is likely to drive short-term market movement, insulating Indian equities somewhat from broader global jitters.