Indian Shares Set For Higher Open On Trade Deal Optimism

(RTTNews) - Indian shares look set to open on a positive note Tuesday as traders return to their desks after a long holiday weekend.

India and the European Union have concluded negotiations on a comprehensive free trade agreement after nearly 20 years.

Among the key announcements expected are cuts in tariffs on European cars and wine, as well as on Indian electronics and textiles.

Meanwhile, facing increased pressure from U.S. President Donald Trump, Canada's prime minister Mark Carney is expected to visit India in the first week of March to discuss traded deals covering uranium, energy, minerals and artificial intelligence.

Investors also look ahead to the Union Budget presentation on Sunday, February 1 for clarity on taxation, reforms and policy priorities that could catalyze the next phase of economic growth.

Indian stock markets were closed on Monay on account of Republic Day. Benchmark indexes Sensex and Nifty tumbled over 2 percent last week, leading to investors losing over Rs 16 lakh crore as the rupee sank to a record low against the dollar on continued foreign fund outflows.

Asian markets were broadly higher this morning despite U.S. President Trump threatening to hike tariffs on goods imported from South Korea to 25 percent, citing Seoul's failure to ratify trade deal.

The Japanese yen held firm after two straight sessions of sharp gains amid speculation of possible joint currency intervention.

The dollar index was steady while gold jumped over 1 percent to scale a new record high above $5,060 an ounce due to a looming U.S. government shutdown and concerns over President Trump's policies.

Traders also await the Fed's policy announcement on Wednesday, with officials likely to hold rates steady, following three straight cuts at the end of 2025.

Oil prices traded lower despite a massive winter storm hitting crude production and affecting refineries on the U.S. Gulf Coast.

U.S. stocks closed higher overnight despite the impasse over DHS funding after a fatal ICE shooting in Minneapolis.

The Dow climbed 0.6 percent ahead of a Fed rate decision and major tech earnings due later in the week.

Investors cheered data that showed U.S. orders for durable goods increased in November by the most in six months.

The S&P 500 added half a percent and the tech-heavy Nasdaq Composite gained 0.4 percent, rising for a fourth-straight day, the longest winning streak since the start of 2026.

European stocks ended mixed on Monday after a choppy ride amid geopolitical and trade tensions.

The pan European Stoxx 600 rose 0.2 percent. While France's CAC 40 slid 0.2 percent, the German DAX and the U.K.'s FTSE 100 both inched up by 0.1 percent.