Nifty all set to open with 300 points gain

Indian stock markets are poised for a strong start, with the Nifty set to open higher by over 300 points. This optimistic outlook stems from a dip in crude oil prices, which has brought relief to energy costs and imported inflation concerns. Foreign portfolio investors (FPIs) have been fueling the momentum, with heavy buying driving the market's upward trajectory.

Analysts predict that this positive trend will continue, supported by a positive sentiment among FPIs and easing geopolitical challenges. The recent decline in WTI crude prices to around $86 per barrel and Brent crude to the $91–92 range has further bolstered market confidence. Moreover, foreign institutional flows have played a significant role in stabilizing the markets, reversing the heavy selling seen in October and generating a surge of net buying in recent sessions.

This renewed support from foreign investors has helped reinforce the market's recovery, boosting risk appetite and enhancing investor confidence. Recent company earnings have also contributed to the bullish sentiment, with revenue growing by 24% and profits increasing by 21% year-on-year across the 392 Nifty 500 companies that reported results for the quarter.

Looking ahead, the Indian equity markets are expected to remain attractive over the next 2–3 years, driven by improving earnings, domestic consumption, private investment, strong credit growth, and more reasonable valuations. Industry bodies have also advocated for the removal of the 12.5% LTCG tax on foreign investors' equity investments, which they believe would reduce transaction costs, improve market liquidity, and attract long-term foreign investment.