Indian Shares Set To Follow Global Peers Higher

(RTTNews) - Indian shares look set to open higher on Monday as investors react to firm cues from global markets and the interim trade agreement disclosed by the U.S. and India through a joint statement.

The interim trade framework signed by both countries followed by U.S. President Trump's executive order removing the additional 25 percent tariff on Indian goods imposed over Russian oil imports will help Indian exporters enjoy a "competitive advantage" in the U.S. market, said Commerce and Industry Minister Piyush Goyal.

The framework was agreed upon in ongoing negotiations to expand two-way trade and to lay the groundwork for a comprehensive Bilateral Trade Agreement (BTA).

A new Morgan Stanley report says Indian equity markets could be heading for a major re-rating by the end of 2026.

The global brokerage said that India's macro environment is easing after years of tightness and therefore BSE Sensex could climb to 1,07,000 by December 2026 in its bull case, and 95,000 in its base case.

Asian markets were mostly higher this morning amid a rally in chip stocks and expectations of more rate cuts from the U.S. Federal Reserve.

Japan's Nikkei surged more than 4 percent to touch a new record high, bonds dropped and the yen weakened following Prime Minister Sanae Takaichi's landslide victory in Sunday's general election. South Korea's tech-heavy index was up nearly 4 percent.

The dollar index eased and gold moved toward $5,000 an ounce ahead of key U.S. data due this week, including reports on jobs, inflation and spending.

Oil prices declined as signs of diplomatic progress between the United States and Iran eased fears of a Middle East conflict.

U.S. stocks surged on Friday as technology stocks recovered following several days of heavy selling on concerns about AI spending and disruption.

In economic news, U.S. consumer sentiment improved marginally in early February while consumer inflation expectation for the next five years rose from 3.3 percent to 3.4 percent in February, separate set of data revealed.

The Dow rallied 2.5 percent to close above 50,000 for the first time and snap a three-week losing streak. The tech-heavy Nasdaq Composite climbed 2.2 percent and the S&P 500 added 2 percent.

European stocks ended Friday's session higher, reversing morning losses as a crucial week for earnings drew to a close.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX gained 0.9 percent, France's CAC 40 rose by 0.4 percent and the U.K.'s FTSE 100 advanced 0.6 percent.