07:43 AM EDT, 05/12/2025 (MT Newswires) -- Indian markets opened on a positive note Mondady after India and Pakistan announced a full and immediate ceasefire over the weekend, noted Societe Generale.

The Reserve Bank of India on Friday had offered to tap foreign exchange reserves to preserve currency stability. The bank said it will have to wait until Tuesday for the reaction in the rupee (INR) and sovereign bonds (IGB) as local foreign exchange and Rates markets are closed on Monday.

Foreign exchange reserves remain ample at $686.0 billion as of May 2, stated SocGen. The RBI is expected to transfer a surplus between 2.2 trillion rupees and 3.1 trillion rupees to the government for the FY24-25, compared with 2.1 trillion rupees in FY23-24. This is positive for INR rates, wrote the bank in a note to clients.

On the data front, inflation is due on Tuesday. SocGen's forecast is for headline to slow further to 3.2%, the lowest since August 2019.

Trade talks with the United States are only "progressing glacially" and Commerce Secretary Howard Lutnick said that "a lot of work" is needed for a trade deal, added the bank.