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Indian equity benchmarks are likely to get a cautious start following weakness in global stock markets amid US President Donald Trump's vow that the US tariffs on imports from Canada and Mexico will go forward next week onwards. That apart, concerns of a stagflation in the US -- a period of slow economic growth and higher inflation -- is likely to weight on investor sentiments. 

Some of the key factors to be watched:

Sustained foreign fund outflows: The Foreign institutional investors (FIIs) remained net sellers on fourth consecutive session on February 24 as they sold equities worth Rs 6,286 crore.

Private corporate sector showed improvements across various segments: the Reserve Bank of India (RBI) data showed that the private corporate sector showed improvements across various segments in Q3FY25, with the operating profit margin of listed non-financial companies increasing sequentially by 50 bps to 16.2%.

India, UK announces resumption of negotiations: India and the UK have announced the resumption of negotiations for the proposed free trade agreement (FTA), which is expected to double or even triple bilateral trade from the current $20 billion in the next 10 years.

IT stocks will be in focus: Nasscom said the Indian IT industry is expected to grow by 5.1 per cent to $282.6 billion in FY25, up from the 4 per cent growth in FY24. It added the sector was likely to surpass the $300 billion revenue milestone in FY26.

Railways stocks will be in limelight: Union minister Ashwini Vaishnaw said railways will achieve 100 per cent electrification in the next fiscal year and is making rapid progress in the usage of renewable energy as well.

On the global front: The US markets ended mostly in red on Monday with big technology stocks creating the biggest drag as investors worried about demand for technology supporting artificial intelligence while they waited for results from market heavyweight Nvidia. Asian markets are trading mostly lower on Tuesday after US President Donald Trump’s move to curb Chinese investments and proceed with tariffs on Canada and Mexico prompted investors to trim positions

Back home, Indian equity benchmarks ended over a percent lower on Monday tracking a US market trend and unabated foreign fund outflows amid concerns over US tariffs. Finally, the BSE Sensex fell 856.65 points or 1.14% to 74,454.41, and the CNX Nifty was down by 242.55 points or 1.06% to 22,553.35.        

Some of the important factors in trade:

Trump to soon impose reciprocal tariffs on India, China: US President Donald Trump has said that his administration will soon impose reciprocal tariffs on countries such as India and China, reiterating what he had said during Prime Minister Narendra Modi's recent visit to the US capital.

India needs to cut tariffs: NITI Aayog CEO BVR Subrahmanyam has said that tariff does not protect any country and India needs to cut tariffs for its own good, irrespective of who tells India to do so. He further said that being open to the world has to be among the top five priorities of India if it wants to become a developed country. 

Oil prices dip: Oil prices extended last week's losses as investors awaited clarity on talks to end the war in Ukraine and weighed up the prospect of a resumption in crude exports from northern Iraq.  

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