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Indian equity benchmarks are likely to get positive start on Tuesday, following favorable global cues. Traders likely to get some support with Commerce ministry data showing that India’s trade deficit in February narrowed to $14.05 billion in February. However, upside may remain capped amid foreign institutional investors (FIIs) offloaded shares worth Rs 4,488 crore on a net basis Monday. 

Some of the key factors to be watched:

India's trade deficit narrows as imports decline: Traders took some support with Commerce ministry data showing that India’s trade deficit in February narrowed to $14.05 billion as the country's imports reduced to $50.96 billion in February. India’s overall exports stood at $71.95 billion in February 2025, declining from $74.97 billion in January 2025. Imports witnessed a sharper decline, dropping to $50.96 billion from $60.92 billion in February 2024

Net direct tax collections rise 13%: The government data showed that net direct tax collection grew 13.13 per cent to over Rs 21.26 lakh crore so far this fiscal aided by higher advance tax mop up.

Trump to speak with Putin on Ukraine war: President Donald Trump said he would speak to Russian President Vladimir Putin on Tuesday as he pushes to end the war in Ukraine. 

India resolves 28,818 insolvency cases under IBC: Union Minister Harsh Malhotra announced that 40,943 applications were filed under the Insolvency and Bankruptcy Code (IBC), with 28,818 resolved pre-admission, involving Rs 10 lakh crore. The IBC's introduction in 2016 improved India's global rank in resolving insolvency, facilitating a better environment for ease of doing business.

Banking stocks will be in focus: Finance Minister Nirmala Sitharaman said banks have written off non-performing assets (NPAs) worth approximately Rs 16.35 lakh crore over the past 10 financial years.

On the global front: The US markets ended mostly higher on Monday, as investors were positive with Commerce Department's report on U.S. retail sales in the month of February. Asian markets are trading mostly higher on Tuesday ahead of the FOMC meeting later this week.

Back home, Indian equity benchmarks ended with gains of around half percent on Monday mirroring a sharp rally in global peers along with buying in Healthcare, Basic Materials and Metal stocks. Finally, the BSE Sensex rose 341.04 points or 0.46% to 74,169.95, and the CNX Nifty was up by 111.55 points or 0.50% to 22,508.75.

Some of the important factors in trade:  

India, China saw stronger trade momentum in Q4 2024: A UN report has said developing nations, particularly India and China, saw better than average trade expansion in the fourth quarter of 2024, but warned of a ‘potential for an economic slowdown’ globally in the upcoming quarters. 

Dollar’s weakness continued to provide support to rupee: The rupee appreciated against the US dollar on positive domestic equities and weakness of the American currency in the overseas market.

FPIs remained net sellers: Foreign portfolio investors (FPIs) remained net sellers of Indian equities for the 16th straight session on Thursday as they net offloaded stocks worth Rs 792.90 crore. The total outflow by foreign investors has reached Rs 1.42 lakh crore ($16.5 billion) in 2025 so far.

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