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Indian equity markets are likely to make a positive start on Monday, tracking upbeat global market cues amid optimism for Federal Reserve rate cuts. Traders are likely to take some support amid optimism surrounding a potential U.S.-India trade deal. However, some cautiousness may come from foreign institutional investors (FIIs), who were net sellers of shares worth Rs 1,766.05 crore.

Some of the key factors to be watched:

Forex reserves jump $5.54 billion to $692.57 billion: RBI data showed that India's forex reserves jumped $5.543 billion to $692.576 billion during the week ended November 14 due to a steep increase in the value of gold reserves.

India, Israel may implement proposed FTA in two phases: Commerce and Industry Minister Piyush Goyal said that India and Israel are considering implementing their proposed free trade agreement (FTA) in two phases to ensure early benefits for the trade community of both countries.

PM Modi holds talks with Japanese counterpart, discusses ways to boost trade ties: Prime Minister Narendra Modi met with his Japanese counterpart Sanae Takaichi on the sidelines of the G20 Summit here and discussed bilateral cooperation in areas like innovation, defence and talent mobility.

India diversifies export basket as shipments to US decline: SBI research report has said that share of India's merchandise exports to other countries increased as shipments to the US declined since July 2025, indicating diversification of export basket across product categories.

Insurance stocks will be in focus: The government proposes to introduce a bill to raise foreign direct investment in the insurance sector to 100 per cent in the upcoming Winter session of Parliament. 

On the global front: The US markets ended in green on Friday amid renewed optimism about the Federal Reserve lowering interest rates at its next monetary policy meeting in December. Asian markets are trading mostly in green on Monday, following the broadly positive cues from Wall Street.

Back home, snapping the two-day rally, Indian equity benchmarks closed lower on Friday mainly due to weak global trends and fading hopes of a rate cut by the US Federal Reserve in December. Market sentiment was further undermined by a soft manufacturing flash PMI reading, a weakening rupee and growing worries over potential delays in India-US trade discussions. Finally, the BSE Sensex fell 400.76 points or 0.47% to 85,231.92 and the CNX Nifty was down by 124.00 points or 0.47% to 26,068.15. 

Some of the important factors in trade:

India's private sector activity expands at slowest pace in six months in November: S&P Global showed the HSBC Flash India Composite Output Index, which measures the combined performance of India’s manufacturing and services sectors, fell to 59.9 in November from 60.4 in October, marking a six-month low. 

Output of eight key infrastructure sectors remains flat in October: The output of eight key infrastructure sectors remained flat in October 2025 on a year-on-year basis, as expansion in output of petroleum refinery products, fertiliser and steel was offset by a contraction in coal and electricity production.

India's farm sector can maintain 4% growth rate over next 10 years: Niti Aayog member Ramesh Chand has said that India's agriculture sector can easily maintain a 4 per cent growth rate over the next 10 years, and the country needs to enhance its warehouse infrastructure.

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