Indian equity markets are set for a mildly positive start on Thursday, driven by optimism around a trade agreement with the United States and continued buying by foreign institutional investors (FIIs). Gift Nifty signals a higher opening for the Nifty 50, reflecting improving investor sentiment after tariffs on Indian goods were reduced significantly.

Foreign investors have turned net buyers for the second consecutive session, helping benchmark indices recover nearly 4% over the past three trading days. The rebound comes after months of heavy selling pressure seen through 2025 and early January.

However, caution remains as global technology stocks witnessed sharp sell-offs overnight. Indian IT stocks may face further pressure after the Nifty IT index recorded its steepest single-day fall in almost six years, amid concerns over artificial intelligence disrupting traditional software business models.

Global markets remain mixed, with major US tech stocks declining on valuation worries and weaker outlooks from key players like AMD. Investors will also closely track the Reserve Bank of India’s policy decision due on Friday, along with quarterly earnings from major companies including Bharti Airtel, Hero MotoCorp, LIC, Tata Motors Passenger Vehicles, and Nykaa.