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Indian equity markets are likely to make flat to positive opening on Monday, tracking mixed global cues and growing tensions between Israel and Iran. Traders may adopt a wait-and-watch approach ahead of India’s Wholesale Price Index (WPI) inflation data for May. However, outflows from foreign institutional investors (FIIs) may weigh on investors sentiment. 

Some of the key factors to be watched:

India's forex reserves jump $5.17 billion to $696.65 billion: The RBI said that India's forex reserves increased by $5.17 billion to $696.65 billion for the week ended June 6.

Modi government committed to giving greater emphasis to small entrepreneurs: Finance Minister Nirmala Sitharaman has said that the Modi government is committed to giving greater emphasis to small entrepreneurs.

PM Modi arrives in Cyprus on first leg of three-nation tour: Prime Minister Narendra Modi arrived in Cyprus on June 15, 2025 for a two-day visit during which he will hold talks with President Nikos Christodoulides to strengthen bilateral ties.

Iran-Israel war could hurt exports: Federation of Indian Export Organisations (FIEO) President S C Ralhan said that the war will further hurt global trade. The situation was gradually improving but now again the trade will be impacted. India's exports to Europe and countries like Russia may get hurt. Freight rates and insurance are expected to increase.

Govt must urgently review energy risk scenarios due to Iran-Israel war: Think tank GTRI said that, with the Israel-Iran conflict intensifying, the government must urgently review energy risk scenarios, diversify crude oil sourcing, and ensure that strategic reserves are sufficient.

On the global front: The U.S. markets ended in red on Friday, amid geopolitical concerns after Israel launched a series of airstrikes against Iran. Asian markets are trading mostly in green on Monday, as a slew of data from China sent mixed signals about the economy. While retail sales growth for May exceeded forecasts, industrial output and fixed asset investment figures came in below estimates.

Back home, Indian equity benchmarks ended over half percent lower on Friday, as weak global markets and a spike in Brent crude oil prices after Israel attacked Iran's capital weighed on investor sentiment. However, selective buying in heavyweights helped trim some of the losses as the session progressed. Finally, the BSE Sensex fell 573.38 points or 0.70% to 81,118.60 and the CNX Nifty was down by 169.60 points or 0.68% to 24,718.60.

Some of the important factors in trade:

Foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 3,831.42 crore on a net basis on Thursday, according to exchange data.

India inflation hits 6-year low of 2.82%: The government data showed retail inflation dipped to an over six-year low of 2.82 per cent in May mainly due to subdued prices of food items, including vegetables, fruits, and protein-rich items.

India open to mutually beneficial arrangements on QCOs with trusted partners: Commerce and Industry Minister Piyush Goyal has said that India is open to mutually beneficial arrangements on implementing norms related quality standards with its trusted trading partners.

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