Stock Market Today: Nifty50, BSE Sensex Set To Open Higher On US Trade Talk Hopes, Rate Cut Bets

India's equity benchmarks are set to open higher on Wednesday, extending their multi-session winning run fuelled by recent tax cuts, while rising bets for U.S. rate cuts and hopes of progress in trade talks with Washington lifted sentiment.

Gift Nifty futures were trading at 25,027 points as of 08:07 a.m. IST, indicating that the benchmark Nifty 50 will open above Tuesday's close of 24,868.6.

The index has gained about 1.2% in the last five sessions, and is trading about 5.4% below the record high hit on September 27, 2024.

Geopolitical risks, however, resurfaced after U.S. President Donald Trump urged European Union officials to impose 100% tariffs on China and India as part of a strategy to pressure Russia, according to a U.S. official and an EU diplomat.

But, Trump also indicated that the U.S. could boost trade with India, citing ongoing discussions to reduce barriers.

Prime Minister Narendra Modi said he is looking forward to speaking with Trump, and that the two countries were working to conclude the trade negotiations at the earliest.

On the flows front, foreign portfolio investors turned buyers in India with net inflows of 20.50 billion rupees ($232.5 million) on Tuesday, per provisional data.

Domestic institutional investors extended their buying streak to an 11th consecutive session.

IT stocks, where FPIs hold relatively larger stakes outside financials, rose 2.8% on Tuesday, led by a 5% jump in Infosys after the company said it would consider a share buyback on September 11.

Read More - Rupee Faces Tug-Of-War At Open As Trump Mixes Tariff Threats

STOCKS TO WATCH

Sun Pharmaceutical Industries says U.S. Food and Drug Administration has determined its Halol plant not compliant with the regulator's manufacturing rules

Sumitomo Mitsui is likely to sell 1.65% stake in Kotak Mahindra Bank for 60 billion rupees, reports said.

Cupid enters into a term sheet to acquire a strategic stake in Mansam, a Saudi Arabian fragrance brand, to expand its presence in the lifestyle and consumer space, leveraging opportunities in the Middle East's luxury market.

Bajaj Auto says it will pass on the full GST reduction benefit to customers, while Eicher Motors says Royal Enfield brand will pass the full benefit of GST cuts across its motorcycle range, effective September 22. ($1 = 88.1670 Indian rupees) (Reporting by Bharath Rajeswaran and Vivek Kumar M in Bengaluru; Editing by Sumana Nandy)