Mumbai: Indian stock markets may be firm on Monday following positive global cues. Asian share markets rose on Monday as signs of progress in the Sino-US trade standoff whetted risk appetite, while pressuring safe-haven bonds and the yen.

Liquidity was, however, lacking with Japan closed and a partial market holiday in the United States for Columbus Day. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.5%.

Australia's main index gained 0.9% and South Korea firmed 1.3%. While Tokyo was on holiday, Nikkei futures were trading at 22105 compared with a Friday close of 21798.

Sentiment was boosted after US President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done. The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months.

Back home, earnings session for September quarter will be center stage this month. Shares of Infosys will be in focus as it reported Q2 results on Friday after trading hours. Infosys’s Q2 results were broadly in line with expectations as compared with TCS which disappointed the Street.

"A 3.3% quarter-on-quarter constant currency revenue growth with 120 basis points (bps) improvement in operating margins sequentially keeps the faith alive on Infosys’s recovery through FY20 though we are surprised by the fact that Infosys did not raise the revenue guidance at the upper end despite the confidence of strong order booking as well as H1FY20 revenue performance. The revised revenue growth outlook of 9-10% constant currency revenue growth implies a (-0.6%) / (+0.6%) Compound Quarterly Growth Rate (CQGR) through each of the next two quarters," said Emkay Global Financial Services Ltd.

Avenue Supermarts on Saturday posted a 47.54% year-on-year rise in net profit to 322.63 crore for Q2. Shares of the company, which owns and operates the D-Mart supermarket chain, will be in focus today.

Hindustan Unilever will also be buzzing in trade as the FMCG major is expected to announce its earnings on Monday.

In primary markets, Indian Railway Catering and Tourism Corporation (IRCTC) will make its stock markets debut on Monday.

The 645-crore initial public offering (IPO), was open for subscription between September 30 and October 4 with a price band of 315-320 per share. It was subscribed 112 times.

Meanwhile, the World Bank slashed its economic growth forecast for India to 6% for the current fiscal from its April projection of 7.5%, citing a broad-based and severe cyclical slowdown.

The progress on US-China trade war was still enough to slug safe-haven bonds with yields on US 10-year Treasury notes climbing 23 basis points last week to stand at 1.74%. The yield curve also steepened as short-term rates were held down by news the Fed would start buying about $60 billion per month in Treasury bills to ensure “ample reserves" in the banking system.

The rally in risk assets saw the yen ease across the board and the dollar was steady at 108.40 early on Monday after hitting a 10-week top around 108.61 on Friday. The dollar did not fare as well elsewhere, partly due to a jump in sterling, and was last at 98.431 against a basket of currencies after losing 0.5% last week. The dollar also dipped against the Chinese yuan to stand at 7.0868 .

The pound was trading cautiously at $1.2608 having surged to a 15-week high around $1.2705 on Friday on optimism Britain could reach a deal on Brexit with the European Union.

The general improvement in risk sentiment saw the spot gold ease another 0.4% to $1,483.90 per ounce.

Oil prices steadied after jumping on reports an Iranian state-owned oil tanker had been attacked in the Red Sea.

(Reuters contributed to the story)