New Delhi, Dec. 22 -- Indian stock markets are expected to rise on Monday, with foreign portfolio investors (FPIs) turning net buyers in cash over the past couple of days and closing out negative Nifty derivatives bets on Friday, according to exchange data.

Market analysts said the optimism stemmed from rising investor hopes of an India-US trade deal and the sharp rebound in the rupee.

FPIs net purchased shares worth a provisional Rs.1830.89 crore, cut their bearish Nifty index futures and options bets as the rupee gained the most in over three years. The Indian currnecy closed at 89.29 against the US dollar on Friday from Rs.90.25 on Thursday, thanks to RBI intervention in the currency markets, per NSE, BSE and Bloomberg data.

"Hopes ...