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Indian equity markets are likely to make negative start on first day of new the week amid foreign fund outflows and negative global cues. Traders likely to remain cautious towards Q3 earnings from big companies. Besides, investors likely to keep close eye on development towards India-US trade deal. 

Some of the key factors to be watched:

Foreign portfolio investors withdraw over Rs 22,530 crore from Indian equities: Foreign portfolio investors withdrew over Rs 22,530 crore ($2.5 billion) from Indian equities so far this month amid rising US bond yields and a stronger dollar, continuing their selling streak from last year.

CII's Business Confidence Index climbs to a five-quarter high in Q3 FY26: Industry lobby said that CII's Business Confidence Index climbed to a five-quarter high of 66.5 in Q3 FY26, driven by optimism around demand, profitability, and investment conditions.

Commerce Ministry formulates specific guidelines for missions abroad to boost exports: The government has formulated specific guidelines for Indian missions abroad as it steps up efforts to boost exports through market diversification amid global economic uncertainties.

India's forex reserves climb to $687.19 billion: The Reserve Bank of India said that India's forex reserves increased by $392 million to $687.19 billion during the week ended January 9. 

India driving South Asia as world's brightest growth spot: The World Economic Forum in its latest Chief Economists Outlook report has said that despite a modest improvement in recent months, a majority of chief economists expect global economic conditions to weaken this year but see India anchoring South Asia as the brightest growth spot despite mounting trade headwinds.

On the global front: The US markets ended lower on Friday amid growing uncertainty over the next Fed chair. Asian markets are trading mostly in red on Monday despite China’s gross domestic product expanded a seasonally adjusted 1.2 percent on quarter in the fourth quarter of 2025. 

Back home, Indian equity benchmarks erased most of their initial gains but managed to end in green on Friday, driven by a sharp jump in Infosys after the company raised its revenue growth guidance for FY26. However, gains remain capped as exchange data showed foreign institutional investors offloaded equities worth Rs 4,781.24 crore on Wednesday. Finally, the BSE Sensex rose 187.64 points or 0.23% to 83,570.35 and the CNX Nifty was up by 28.75 points or 0.11% to 25,694.35.  

Some of the important factors in trade: 

World Bank upwardly revises India’s GDP growth forecast to 7.2% for FY26: Highlighting robust domestic demand and tax reforms, the World Bank has upwardly revised India’s GDP growth forecast by 0.9 percentage points to 7.2% for FY26, from its June projections of 6.3%. 

India sees merchandise exports growth of 1.87% in December: The commerce ministry’s data has showed that India’s merchandise exports rose 1.87 per cent to $38.5 billion in December 2025 as compared to $37.80 billion in December 2024, despite persistent global economic headwinds.  

Unemployment rate in India rises marginally to 4.8% in December: Ministry of Statistics and Programme Implementation (MoSPI) in its Periodic Labour Force Survey (PLFS) has showed the unemployment rate among people aged 15 and above grew marginally to 4.8% in the month of December 2025 from 4.7% in November 2025.

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