Indian equity benchmarks are set to open higher as indicated by the Nifty futures traded on Singapore Exchange. The Nifty futures traded on Singapore Exchange also known as the SGX NIfty rose 47 points or 0.4 per cent to 11,722. Meanwhile, other Asian markets were also trading higher as positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks supported sentiment, although another defeat for British Prime Minister Theresa May's proposed Brexit deal added to sterling's woes.
MSCI's broadest index of Asia-Pacific shares outside Japan added 1 percent and the Shanghai Composite Index rallied 1.7 per cent.
Australian stocks climbed 0.8 per cent, South Korea's KOSPI gained 1 per cent and Japan's Nikkei advanced more than 2 per cent.
The markets took heart after China's official purchasing managers' index (PMI) released on Sunday showed factory activity unexpectedly grew for the first time in four months in March.
A private business survey, the Caixin/Markit PMI, released on Monday also showed the manufacturing sector in the world's second biggest economy returning to growth.
If sustained, the improvement in business conditions could indicate that manufacturing is on a path to recovery, easing fears that China could slip into a sharper economic downturn.
Back home, auto shares will be in focus as they will report their monthly sales numbers later in the day.
Dr. Reddy's Labs will be closely watched as its Vishakapatnam facility has been re-inspected by Regulatory Authority of Germany and considered to be fully compliant.
Dena Bank, Vijaya Bank and Bank of Baroda will be on investors' radar as they become part of Bank of Baroda from today, making the first-ever three-way merger in India's banking sector.
(With inputs from Reuters)
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