May 26 (Reuters) – India’s benchmark indexes are set to open marginally higher on Monday, after U.S. President Donald Trump extended the deadline for trade talks with the European Union, easing near-term tensions.
Gift Nifty futures were trading at 24,935.5 as of 8:09 a.m. IST, indicating that the Nifty 50 will open above its Friday’s close of 24,853.15. Trump on Sunday backed off his threat to speed up 50% tariffs on imports from the EU, agreeing to extend his deadline for trade talks until July 9 after the head of the EU executive body said the bloc needed more time to “reach a good deal.”
Other Asian markets opened marginally higher, with the MSCI Asia ex-Japan index gaining 0.2%, while oil prices also edged higher on easing concerns of fuel demand.
The Nifty 50 has climbed 5.7% since early April, supported by foreign inflows, improving corporate earnings, and expectations that India will remain relatively insulated from U.S. tariffs. The index remains 5.4% below its record high of September 27, 2024.
Foreign portfolio investors purchased 17.95 billion rupees ($211.14 million) worth of Indian equities on Friday, bringing May’s net inflows to $1.64 billion.
Investor focus will also be on key domestic triggers, with India’s Q4 GDP data due on May 30 and the RBI’s policy decision on June 6. Signs of economic recovery or policy support could further strengthen sentiment and corporate profitability expectations.
Short-term momentum remains constructive, but global trade risks and upcoming data releases may drive volatility, two analysts said.
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($1 = 85.0140 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru)
