Opening Bell : Benchmarks likely to make cautious start on Tuesday
Indian equity markets are likely to make cautious start on Tuesday, amid mixed global cues. Traders are likely to remain cautious amid U.S. President Donald Trump calling trade ties with India a totally one-sided disaster. Meanwhile, ongoing selling by foreign portfolio investors (FPIs) could dampen markets sentiments.
Some of the key factors to be watched:
India's first quarter CAD narrows to 0.2% of GDP: India's current account deficit (CAD) narrowed to 0.2 per cent of GDP, or $2.4 billion, during the April-June period of 2025-26 compared to 0.9 per cent of the GDP, or $8.6 billion, in the year-ago period, helped by services exports.
India-Russia ties key for global stability: India and Russia have vowed to strengthen their strategic ties against the backdrop of New Delhi's frictions with the US, with Prime Minister Narendra Modi telling Russian President Vladimir Putin that the two countries stood shoulder-to-shoulder even in most difficult times.
India, UAE discuss ways to increase trade in pharma, healthcare products: The commerce ministry said that India and the UAE have discussed ways to enhance and facilitate trade in pharmaceuticals and healthcare products with an aim to boost economic ties.
Gross GST mop-up rises 6.5% to Rs 1.86 lakh crore in August: The government data showed that gross GST collection increased 6.5 per cent to over Rs 1.86 lakh crore in August on higher domestic revenues.
Aviation stocks will be in focus: Aviation turbine fuel (ATF) prices were cut by 1.4 per cent, while commercial LPG cylinders became cheaper by Rs 51.50, reflecting a drop in global benchmark rates.
On the global front: The US markets remained closed on Monday, September 1, 2025, in observance of the Labor Day holiday. Asian markets are trading mostly in green on Tuesday, as investors evaluated the Shanghai Cooperation Organization leaders' meeting in Tianjin.
Back home, Indian equity benchmarks, after three straight days of losses, ended higher on Monday on value buying in Auto, Consumer Durables and Consumer discretionary shares along with strong macro data. India's economy grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles. Finally, the BSE Sensex rose 554.84 points or 0.70% to 80,364.49 and the CNX Nifty was up by 198.20 points or 0.81% to 24,625.05.
Some of the important factors in trade:
Indian manufacturing sector hits 17-year high: Indian manufacturing sector witnessed the fastest improvement in operating conditions in over 17 years in August, driven by an increased production efficiency and healthy demand conditions. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 59.1 in July to 59.3 in August.
Govt on track to meet fiscal deficit target of 4.4% for FY26: Dispelling fears that the government may miss its ambitious fiscal deficit target of 4.4% for FY26, the Department of Economic Affairs (DEA) Secretary Anuradha Thakur has said the government is on track to meet the goal set in the Budget despite temporary mismatches which may have been exhibited in the latest monthly numbers.
India negotiating bilateral trade agreement with US: Commerce and Industry Minister Piyush Goyal has said that India is negotiating a bilateral trade agreement with the US, indicating that the steep 50 per cent tariff imposed by America on Indian goods will not have much impact on the country’s economy.
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