BENGALURU: Indian shares are set to open higher on Tuesday, on cooling domestic inflation and persistent foreign institutional buying in equities, while hopes of a debt ceiling deal in the US boosted sentiment across global equities.

India’s NSE stock futures listed on the Singapore exchange were up 0.27% at 18,453, as of 7:58 a.m. IST.

The Nifty 50 closed at a near-five-month high on Monday, helped by earnings and favourable inflation data.

The benchmark has gained 6% in fiscal 2024 so far.

“The underlying short-term trend of Nifty continues to be positive,” said Nagaraj Shetti, technical research analyst at HDFC Securities, adding that there was ongoing volatility in the market at around 18,400 levels.

“Any dips could be a buying opportunity around 18,280-18,200 levels.” The recent uptick in markets has been supported by the return of foreign buying in Indian equities.

Foreign institutional investors (FIIs) extended their buying streak for the thirteenth session on Monday, adding 16.85 billion rupees ($206.04 million) worth of shares.

This is the longest daily buying streak in nine months by FIIs, who bought more than 210 billion rupees worth of shares in the period, according to provisional data from the National Stock Exchange.

Indian shares rise on earnings boost, inflation optimism

Wall Street equities advanced, ahead of talks between the US President and House Republicans about raising the debt ceiling on Tuesday.

The Congressional Budget Office had earlier warned that the country faced risk of defaulting on payment obligations without raising the government’s $31.4 trillion debt ceiling.

Asian markets trimmed gains after data showed China’s industrial output grew at a lower-than-expected 5.6% year-on-year in April, while retail sales growth also missed forecasts.