Nifty futures suggest a higher opening above Monday's close, with the Gift Nifty futures trading at 25,167 points as of 7:51 a.m. IST.
Asian stocks outside Japan moved up by 0.5%, led by gains in Hong Kong amidst lingering uncertainty due to tariffs.
A rise in Japanese and U.S. bond yields could limit gains for emerging market equities, as it makes them less appealing to foreign investors.
Domestically, retail inflation in India dropped to a more than six-year low of 2.10% in June, potentially paving the way for further interest rate cuts.