(fxcue news) - Indian shares look set to open sharply higher on Monday as investors react to easing Indo-Pak tensions and positive indications coming from China-U.S. trade talks. After days of attacks and retaliatory strikes, India and Pakistan have reached a mutual ceasefire. India said it had achieved main objectives and warned of a fierce & punitive response to any future Pakistani violations. A DGMO-level talk with Pakistan will be held at 12 noon later today. The U.S. and China have made significant progress in trade talks in Switzerland over the weekend and agreed to continue consultations on trade issues. U.S. Treasury Secretary Scott Bessent stated on Sunday that the discussions made "substantial progress," without giving further details. U.S. Trade Representative Jamieson Greer also said that an agreement had been reached. More details are expected at a briefing later today. The Chinese delegation said it had "candid, in-depth and constructive dialogue," and the two sides have agreed to create a mechanism for further talks. Elsewhere, Ukrainian President Volodymyr Zelenksyy said he is hoping for a full and temporary ceasefire with Russia starting today. Zelenskyy will be in Turkey on Thursday & expects Russian President Vladimir Putin to come. In earnings news, Swiggy, Dr. Reddy's Laboratories, Manappuram, ABB and Thermax have announced their quarterly results after market hours on Friday. Tata Steel reports its earnings today. Meanwhile, Japan's Sumitomo Mitsui Banking Corporation has entered into an agreement to acquire 20 percent stake in YES Bank through a secondary stake purchase valued at around Rs 13,483 crore, in what could be the largest cross-border investment in the banking sector. A 13.19 percent stake is being purchased from SBI at a cost of Rs 8,889 crore and another 6.81 percent stake from other banks including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. Pharma stocks could also be in focus today after U.S. President Donald Trump promised to sign an executive order to lower the cost of U.S. prescription drug costs, mandating that Americans pay no more than people in countries that have the lowest price. Asian stocks were seeing modest gains this morning, with Hang Seng rising for an eighth day - the best run in a year as investors await details of the U.S.-China trade talks. The U.S. dollar climbed against major peers and the yield on the 10-year U.S. Treasury inched by 3 basis points, denting demand for safe havens such as gold, which traded near $3,270 per ounce levels in Asian trade. Oil steadied after posting a weekly gain. U.S. stocks fluctuated before closing narrowly mixed on Friday, posting modest losses for the week after the announcement of a limited trade agreement with the U.K. and ahead of crucial Sino-U.S. trade talks. European stocks closed higher on Friday amid signs of easing trade tensions. The pan European STOXX 600 gained 0.4 percent. The German DAX and France's CAC 40 both rose by 0.6 percent while the U.K.'s FTSE 100 added 0.3 percent.