Indian benchmark indices Sensex and Nifty are poised for a strong gap-up opening on Monday, tracking positive global cues after crude oil prices declined sharply amid renewed optimism over easing geopolitical tensions in the Middle East.

GIFT Nifty was trading at 24,618 on Monday morning, up 170 points or 0.7 percent, indicating that the Nifty 50 could open well above Friday's closing level of 24,383.60. The positive outlook follows a strong performance in the previous session, when the Sensex gained 166.49 points to close at 78,094.64, while the Nifty 50 advanced 66.45 points to settle at 24,383.60, extending gains for a third consecutive trading session.

Investor sentiment improved significantly after crude oil prices registered a sharp decline. The fall came after US President Donald Trump stated that discussions with Iran were scheduled to take place on Monday, raising expectations of a diplomatic resolution and reducing concerns over potential disruptions to global energy supplies.

Brent crude futures fell as much as 7.3 percent to USD 81.55 per barrel, while US West Texas Intermediate crude declined 5.4 percent to USD 80.10 per barrel. Lower crude oil prices are generally viewed as positive for the Indian economy, as they help reduce import costs, ease inflationary pressures, and improve the country's current account balance.

Asian equity markets traded mixed during Monday's session. South Korea's Kospi index declined sharply as investors booked profits in technology stocks after last week's rally, with Samsung Electronics and SK Hynix witnessing notable losses. Japan's Nikkei also traded lower, while the broader MSCI Asia-Pacific index excluding Japan remained under pressure.

Despite weakness across parts of Asia, US equity futures indicated continued strength. S&P 500 futures and Nasdaq futures traded higher, reflecting sustained optimism in technology stocks following stronger-than-expected earnings from major US companies.

Wall Street ended Friday's session on a positive note, supported by robust corporate earnings. Gains in Amazon boosted confidence in artificial intelligence-related investments, offsetting weakness in Apple shares. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed higher.

Institutional flows also remained supportive for Indian equities. Foreign Institutional Investors (FIIs) were net buyers for the fourth consecutive trading session, purchasing Indian equities worth Rs 277 crore. Domestic Institutional Investors (DIIs) extended their buying momentum as well, with net purchases of Rs 2,260 crore.

Going forward, investors are expected to closely monitor developments surrounding the proposed US-Iran talks, trends in global crude oil prices, foreign investment flows, and international equity markets, which are likely to influence the near-term direction of Indian equities.