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Indian equity markets are likely to make negative start on Monday, tracking weak global cues. Traders are likely to adopt wait-and-watch approach ahead of the release of India's WPI inflation data scheduled later in the day. Sentiment may also remain subdued due to continued foreign investor selling and lingering uncertainty surrounding the US-India trade talks.

Some of the key factors to be watched:

India’s retail inflation rises to 0.71% in November on higher food prices: The government data showed that retail inflation inched up to 0.71 per cent in November, from a record low of 0.25 per cent in the previous month, led by rising prices of food items.

Forex reserves jump by $1 billion to $687.26 billion: The RBI said that India's forex reserves jumped by $1.033 billion to $687.26 billion during the week ended December 5.

Jaishankar meets European, UK, Egyptian counterparts at UAE summit: External Affairs Minister S Jaishankar has met with his counterparts from Europe, the UK and Egypt on the sidelines of a high-level international summit in the United Arab Emirates, where leaders and policymakers gathered to discuss key geopolitical and security challenges.

Indian envoy Kwatra discusses AI, defence, trade with US lawmakers: India's Ambassador to the US Vinay Mohan Kwatra has held meetings with senior Democratic lawmakers, discussing cooperation in emerging technologies, defence, and trade as part of efforts to further strengthen bilateral ties.

India's gems, jewellery exports in November grew 20% to $2.5 billion: Gem and Jewellery Export Promotion Council report said that India's gems and jewellery exports grew 19.64 per cent to $2.5 billion in November compared to the same month last year.

On the global front: The US markets ended lower on Friday, as investors continued to exit technology stocks and move into value areas of the market. Asian markets are trading mostly in red on Monday, tracking losses from Wall Street on Friday.

Back home, Indian equity benchmarks extended their gains for a second straight session and ended over half percent higher on Friday following buying in Metal, Basic Materials and Realty shares and positive global trends. Traders overlooked the exchange data showing that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,020.94 crore on Thursday. Finally, the BSE Sensex rose 449.53 points or 0.53% to 85,267.66 and the CNX Nifty was up by 148.40 points or 0.57% to 26,046.95.       

Some of the important factors in trade:

Rural demand witnesses revival over past year in NABARD survey: The NABARD survey has showed a broad-based revival in rural demand, rising incomes and improved household well-being over the past year. 

India’s corporate bond market poise to exceed Rs 100 trillion by 2030: The Niti Aayog said that India’s corporate bond market has the potential to exceed Rs 100 to 120 trillion by 2030, provided some deeper structural reforms and institutional capacity-building are undertaken.   

Auto stocks in watch: The industry body SIAM said passenger vehicle dispatches from companies to dealers increased 19 per cent year-on-year in November as demand remained robust post festive period. Total passenger vehicle sales stood at 4,12,405 units in November, up 18.7 per cent as compared with 3,47,522 units in the year-ago period.

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