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Indian equity markets are likely to make cautious start on Tuesday tracking mixed global cues. Traders are likely to take cautious approach ahead of the Reserve Bank of India's monetary policy decision. Additionally, some cautiousness may come from foreign institutional investors (FIIs), who were net sellers of shares worth Rs 1,171.31 crore. 
Some of the key factors to be watched:

India’s industrial output growth slows to 0.4% in October: India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), grew 0.4 per cent (Year-on-Year) in October 2025. The slow growth in the month could be attributed to less number of working days because of a number of festivals in the month including Dussehra, Dipawali and Chhath.

India current account deficit narrows to 1.3% of GDP in Q2: Reserve Bank of India said that India's current account deficit narrowed to $12.3 billion or 1.3 per cent of GDP in the September quarter on the back of a reduction in the trade deficit, higher services exports and higher remittances by the diaspora.

India seeks Lok Sabha's nod for Rs 41,455 crore additional spending in FY26: The government sought Parliament's nod for net additional spending of Rs 41,455 crore in the current fiscal, which includes over Rs 18,000 crore expenditure towards fertiliser subsidy.

RBI governor releases five-year national financial inclusion strategy: Reserve Bank Governor Sanjay Malhotra has released a national strategy aimed to deepen financial inclusion over the next five years. The National Strategy for Financial Inclusion (NSFI): 2025-30 emphasises a synergistic ecosystem approach, improving the quality and consistency of last-mile access and effective usage of financial services.

FDI rises 18% to $35.18 billion in April-September FY26: Government data showed that foreign direct investment (FDI) in India rose 18 per cent to $35.18 billion during April-September this fiscal year, while the inflow from the US more than doubled to $6.62 billion during the first half of this fiscal.

On the global front: The US markets ended lower on Monday ahead of the release of key U.S. economic data in the coming days, which could impact Fed officials' decision on interest rate. Asian markets are trading mostly in green on Tuesday, as traders continue to be optimistic about the outlook for interest rates following recent dovish comments from leading US Fed officials and weak US manufacturing data.

Back home, Indian equity benchmarks closed marginally lower after hitting their fresh all-time highs on Monday due to profit-taking at higher levels and foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,795.72 crore on Friday, according to exchange data. Rupee slipping to an all-time low also hit the investor sentiment. Finally, the BSE Sensex fell 64.77 points or 0.08% to 85,641.90 and the CNX Nifty was down by 27.20 points or 0.10% to 26,175.75.  

Some of the important factors in trade:

India’s manufacturing PMI eases to 56.6 in November: The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to 56.6 in November from 59.2 in October, highlighted the slowest improvement in operating conditions since February. 

India's exports to US fall 28.5% due to aggressive tariff hikes: The Global Trade Research Initiative (GTRI) has said that India's exports to its largest foreign market, the US, have suffered a sharp reversal due to aggressive tariff hikes. 

Crisil raises India's GDP forecast to 7% in FY26: Crisil has raised its forecast for the country's Gross domestic product (GDP) growth to 7 per cent from 6.5 per cent for the current financial year (FY26), following the first-half growth of 8 per cent that exceeded expectations.

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