Indian shares set to open higher on HCLTech results, soft inflation

India's equity benchmarks are likely to open higher on Tuesday, with IT stocks set to gain following upbeat quarterly results from HCLTech HCLTECH, while softer retail inflation has raised hopes of a potential rate cut by the central bank in December.

Gift Nifty futures (GIFc1) were trading at 25,318 points, as of 8:19 a.m. IST, indicating that the benchmark Nifty 50 NIFTY will open above previous session's close of 25,227.35.

Both the Nifty and BSE Sensex SENSEX slipped about 0.2% each on Monday, weighed down by a 0.8% decline in IT stocks CNXIT.

Global markets also weakened after the U.S. issued fresh tariff threats against China, prompting broad risk aversion. Investors tend to retreat from sectors such as IT, which are sensitive to global demand and economic stability.

Indian IT stocks, however, could rebound on Tuesday after HCLTech, the country's No. 3 software services exporter, maintained its annual revenue growth forecast of 3%-5% after beating second-quarter revenue estimates.

Meanwhile, domestic retail inflation slid to an eight-year low of 1.54% in September, government data showed on Monday, as food prices eased. The sharp decline strengthened the case for a potential rate cut at the Reserve Bank of India's policy meeting in December.

Expectations of progress in the India-U.S. trade negotiations also aided sentiment, analysts said. India and the U.S. are set to hold talks this week, with reports indicating that both the countries will stick to a fall 2025 deadline for the first part of a trade deal.

Other Asian markets opened higher, with the MSCI Asia ex-Japan (.MIAPJ0000PUS) rising 0.6%, while Wall Street equities rose overnight after U.S. President Donald Trump softened his tone on the U.S.-China trade war.

U.S. Treasury Secretary Scott Bessent said that Trump is set to meet China's President Xi Jinping in late October to de-escalate the trade tensions.

STOCKS TO WATCH

** LG Electronics (LGEL.NS) will debut on the stock exchange after its $1.3 billion IPO became the most bid billion-dollar IPO since 2008

** Anand Rathi Wealth ANANDRATHI reports rise in revenue and net profit in the September quarter, declares first interim dividend of 6 rupees apiece

** KEC International KEC wins orders worth 11.74 billion rupees in the transmission and distribution business

** Dubai-based bank Emirates NBD EMIRATESNBD is in advanced talks to buy a stake in private lender RBL Bank RBLBANK, two people familiar with the deal told Reuters

($1 = 88.6740 Indian rupees)