Indian equities set to open higher as Asian markets rally on rate hopes

Indian equity benchmarks were poised for a strong opening Monday, with GIFT Nifty futures climbing 100 points in early trading ahead of the domestic market session. The gains reflected broader optimism sweeping through Asian markets, which posted solid advances in early dealing as investors reassessed expectations around monetary policy tightening.

Across the region, bourses extended their upward momentum as traders digested signals suggesting central banks may adopt a more measured approach to interest rate increases. The shift in rate-hike expectations has bolstered sentiment among equity investors, who have grown concerned about the impact of elevated borrowing costs on corporate earnings and economic growth.

The positive momentum in Asian markets provided a favourable backdrop for Indian equities to capitalise on overnight gains. Investors in India appeared cautiously optimistic heading into the trading week, with the GIFT Nifty indicating healthy appetite for domestic shares amid the improved global environment.

Market participants will continue monitoring macroeconomic data and central bank communications for further clues on the trajectory of monetary policy. The broader risk-on sentiment across Asian markets suggests investors are gradually shifting focus from inflation concerns toward growth prospects, a shift that has typically supported equity valuations.