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Indian equity markets are likely to make a cautious start on Tuesday, amid mixed global cues. Traders are likely to adopt wait-and-watch approach ahead of the release of Wholesale Price Index (WPI) inflation data. Additionally, some cautiousness may come from foreign institutional investors, who were net sellers of shares worth Rs 240.10 crore on Monday.

Some of the key factors to be watched:

Retail inflation slips to over 8-year low of 1.54% in September: The government data showed that India's retail inflation slowed to an over 8-year low of 1.54 per cent in September and slipped below Reserve Bank's comfort zone mainly due to subdued prices of vegetables, fruits and pulses.

Net direct tax revenue jumps 6% to Rs 11.89 lakh crore till October 12: The government data showed that net direct tax collection grew 6.33 per cent so far this fiscal to over Rs 11.89 lakh crore due to higher corporate tax mop-up and slower refunds.

RBI reform plans to strengthen bank operating environment, boost credit flow: S&P Global Ratings has said that the Reserve Bank of India’s (RBI) recent reform package is likely to strengthen the operating environment of banks and provide more room for the banks to keep credit flowing to the broader economy.

India-EU trade pact talks progressing; steel, auto issues need resolution: The report said that negotiations for the proposed free trade agreement between India and the EU are progressing well, but differences still need to be ironed out in certain areas such as carbon tax, steel, automobiles and non-tariff barriers.

DPIIT launches PM GatiShakti Offshore for integrated planning: Department for Promotion of Industry and Internal Trade (DPIIT) has launched the PM GatiShakti -- Offshore, a digital platform developed for the integrated planning and management of offshore projects like wind farms, marine resource exploration, and coastal infrastructure development.

On the global front: The US markets ended in green on Monday as signs of thaw in US-China trade tensions have bolstered the investors’ sentiments. Asian markets are trading mostly in green on Tuesday, amid renewed optimism over U.S.-China trade talks.

Back home, snapping their two-day winning streak, Indian equity benchmarks ended with minor losses on Monday, due to selling in IT and FMCG shares and a weak trend in global markets after US President Donald Trump announced an additional 100 per cent tariff on Chinese goods from November 1. Finally, the BSE Sensex fell 173.77 points or 0.21% to 82,327.05 and the CNX Nifty was down by 58.00 points or 0.23% to 25,227.35.

Some of the important factors in trade:

India poised to contribute about one-fifth of world's GDP growth: Shaktikanta Das, the Principal Secretary-2 to PM Narendra Modi, has said that India is poised to contribute about one-fifth of the world's GDP growth on the back of robust domestic demand and prudent macroeconomic and financial sector policies, which enabled it to withstand ‘external shocks’. 

India, Canada trade ministers hold discussions on ways to strengthen economic ties: Commerce and Industry Minister Piyush Goyal hold discussions with his Canadian counterpart Maninder Sidhu on ways to strengthen economic ties between the two countries. 

India, Korea to collaborate on Electronics, EV Components: The commerce ministry said India and Korea have agreed to explore joint initiatives in electronics and electric vehicle (EV) components, and digital supply chains.

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