Indian equity benchmarks are set to open higher on Monday, attempting to reverse a five-day losing streak that has weighed on investor sentiment.
The positive outlook is driven by upbeat global market cues and a decline in crude oil prices, which alleviates pressure on India’s current account deficit and corporate input costs.
The Gift Nifty, the offshore derivative benchmark for the Nifty 50, is trading in positive territory, signaling strong buying interest ahead of the domestic market open.
This technical setup suggests that the recent selling pressure may be easing, with traders positioning for a short-term recovery after the indices closed lower for five consecutive sessions.
The drop in crude oil prices provides a tailwind for Indian equities, particularly for sectors sensitive to energy costs such as aviation, logistics, and chemicals.
Lower oil prices also help contain inflationary pressures, potentially giving the Reserve Bank of India more flexibility in its monetary policy stance.