GIFT Nifty gained nearly 0.6 percent on Tuesday, signalling a positive opening for domestic equity markets when trading resumes on Wednesday, as falling crude oil prices lifted investor sentiment.

Indian stock markets remained closed on Tuesday for Diwali Balipratipada. The holiday followed Monday's session, when the benchmark indices recovered from early losses to close at their highest levels in more than eight months.

At around 10:30 am, GIFT Nifty was trading 141 points, or 0.57 percent higher at 25,257.

Brent crude futures remained below USD 100 per barrel, hovering at their lowest levels since early September, as investors pinned hopes on possible talks between the US and Iran.

In the previous session, the Nifty rose 0.23 percent to 25,044.65, while the Sensex gained 0.13 percent to close at 81,106.65. Both indices settled at their highest levels since February 27, 2026.

The benchmark indices had surged around 10.5 percent over seven consecutive sessions through Friday, marking their longest winning streak this year. The rally was supported by strong foreign fund inflows, falling crude oil prices and an unwinding of the global artificial intelligence trade.

The positive momentum has also received support from global brokerages. Citi raised its end-2027 Nifty target to 28,000, implying an upside of around 12 percent from the index's previous close. HSBC also upgraded its rating on Indian equities to 'overweight' from 'neutral'.

"After the recent sharp rally, some consolidation cannot be ruled out at higher levels and stock-specific action will continue to remain in focus in the near term," Pabitro Mukherjee, Deputy Vice President of Research at Bajaj Broking told Reuters.

He added that the ongoing earnings season would remain a key market trigger.

Meanwhile, US stock futures traded mixed as investors awaited inflation data later in the day.

Nasdaq futures were down 0.14 percent, while S&P 500 futures gained 0.11 percent and Dow Jones futures rose 0.3 percent.

Investors remained cautious ahead of the US inflation reading for October. Economists expect consumer prices to have increased at a moderate pace, although inflation is likely to remain high enough to keep the Federal Reserve's interest rate decision next month in focus.

Asian markets, meanwhile, advanced after a decline in crude oil prices. The fall in oil prices followed US President Donald Trump's announcement that he planned to hold off on fresh military strikes against Iran.

South Korea's KOSPI surged more than 5 percent, while Japan's Nikkei gained around 3 percent in early trade. MSCI's broadest index of Asia-Pacific shares rose 1.5 percent, moving further away from the seven-month low recorded last week.

Investors also remained focused on Nvidia after the world's second-most valuable company said its board was investigating whether Chief Executive Officer Jensen Huang had been the target of a foreign intelligence operation.

Nvidia shares were up over 1 percent in pre-market trading after declining 8 percent in the previous session.