Indian benchmark indices — Sensex and Nifty 50 — are set to open marginally higher on September 4, on hopes of a US Federal Reserve rate pause later this month and strong domestic macroeconomic data.

Kotak Mahindra Bank, sugar stocks, Jio Financial and Paytm will be in focus among other stocks.

This comes as Uday Kotak announced his resignation as MD and CEO of Kotak Mahindra Bank over the weekend, while sources say Uttar Pradesh is likely to raise the state advisory price of sugar, which may have an impact on sugar stocks.

The Indian markets started the September series on a strong footing, with the market posting its biggest single day gain in two months on Friday. The India VIX, which is the volatility indicator, was down close to around six odd percent.

Macros seem to have supported the domestic markets. The GST collections for August were up 11 percent year-on-year. India manufacturing PMI came in at a three month high for August.

Global cues for the day remain intact. On Friday, the Dow and Jones closed more than 100 points higher, witnessing its best week since July. The US unemployment rate came in at 3.8 percent versus estimates of 3.5 percent. All these will be important data points for the US Fed, which meets later this month.

Asian markets were largely mixed this time. The GIFT Nifty is indicating a positive start.

Meanwhile, the G20 summit is scheduled for September 9 and 10.

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