Stock market indices Sensex and Nifty expected to open with modest gains at the beginning of trading on Thursday.

Indian indexes experienced a significant boost on Monday, with the benchmark indexes Sensex and Nifty increasing by around 0.7 percent and 0.8 percent, respectively. This upward trend was influenced by the Q1 domestic GDP data and a U.S. federal appeals court ruling against President Trump's tariffs.

Foreign investors, however, net sold shares worth Rs 1,430 crore on Monday. Despite this, the positive sentiment seemed to overshadow the foreign selling, driving the Indian market higher.

Elsewhere, U.S. stock markets were closed on Monday for Labour Day. European markets, on the other hand, closed higher, with defense and healthcare stocks leading the surge. The pan European STOXX 600 edged up by 0.2 percent, while France's CAC 40 and the U.K.'s FTSE 100 both finished marginally higher. The German DAX climbed 0.6 percent.

Asian markets are seeing modest gains this morning, potentially influenced by the positive sentiment from the previous trading day.

Meanwhile, trade tensions between the U.S. and India remain unresolved, with President Trump expressing dissatisfaction. No concrete plans for a trilateral meeting between the presidents of Russia, Ukraine, and the U.S. have been announced yet.

In other news, the rupee fell by 10 paise to close at a record low of 88.19 against the dollar on Tuesday. The fall in the rupee's value is due to trade deal uncertainties with the United States and higher dollar demand from importers.

On a positive note, gold is holding firm, with gains extended to a sixth day. This is due to Fed rate-cut bets, and the commodity has seen its longest winning streak since April 2024. Oil is also extending gains on supply disruption concerns.

In domestic news, domestic institutional investors bought shares to the tune of Rs. 4,345 crore on Monday. However, no specific evidence from recent years suggests that India made an offer to reduce its tariffs to zero, as claimed by President Trump.

Lastly, the dollar is trading weak ahead of upcoming U.S. jobs and inflation data, as well as the Federal Reserve's rate decision. Indian shares are expected to open little changed on Tuesday.