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Indian equity markets are likely to make cautious start on Monday, following mixed cues from global markets. However, traders are likely to find some support after India and Russia announced sixteen agreements covering defense, trade, the economy, healthcare, academics, culture, and media, with the aim of diversifying trade beyond oil and defense.

Some of the key factors to be watched:

India’s forex reserves drop by $1.88 billion to $686 billion: RBI said that India's forex reserves dropped by $1.88 billion to $686.23 billion during the week ended November 28. In the previous reporting week, the overall reserves had declined by $4.47 billion to $688.10 billion.

India, US trade team to start three-day talks: The private report said that India and the United States will commence three-day talks on the first phase of their proposed bilateral trade agreement from December 10. The visit is crucial as India and the US are working to finalise the first tranche of the pact.

EU team to meet Piyush Goyal on FTA: The private report said that the visiting European Union (EU) team will hold discussions with Commerce and Industry Minister Piyush Goyal on December 8 on the progress of negotiations on the proposed free trade agreement.

Indian adds 31 GW non-fossil capacity in current fiscal: Highlighting India’s historic clean energy expansion, Union Minister of New and Renewable Energy Shri Pralhad Joshi said that India has recorded its highest-ever addition of non-fossil capacity in the current financial year at 31.25 GW, including 24.28 GW of solar.

Sebi proposes to streamline FPIs registration process: Markets regulator Sebi has proposed a comprehensive overhaul of the Foreign Portfolio Investor (FPI) framework, aiming to streamline the registration process and introduce an abridged application option for related funds.

On the global front: The US markets ended in green on Friday, after Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.3 percent in September. Asian markets are trading mostly in red on Monday, as investors reacted to rising Japan-China military tensions and braced for policy announcements from central banks spanning Australia to Brazil and the United States.

Back home, Indian equity benchmarks ended over half percent higher on Friday after the Reserve Bank of India (RBI) cut interest rates by 25 basis points in a bid to further bolster economic growth. It also raised the GDP growth projection to 7.3 per cent for the current fiscal from its earlier estimate of 6.8 per cent following robust economic performance in the July-September quarter. Finally, the BSE Sensex rose 447.05 points or 0.52% to 85,712.37 and the CNX Nifty was up by 152.70 points or 0.59% to 26,186.45.

Some of the important factors in trade:

RBI lowers inflation projection to 2% for FY26: The Reserve Bank significantly lowered the inflation projection for the current fiscal to 2 per cent from 2.6 per cent estimated earlier as the economy continues to witness rapid disinflation.

India, Canada trade pact talks begin: Commerce and Industry Minister Piyush Goyal and his Canadian counterpart Maninder Sidhu held discussions on the contours, objectives and modalities for launching negotiations on a proposed free trade agreement.

Centre releases Rs 37,000 crore under Revamped Distribution Sector Scheme: The government has released about Rs 37,000 crore towards Revamped Distribution Sector Scheme (RDSS), which works out to be 38 per cent of the amount sanctioned in the Budget for the scheme.

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