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Indian equity benchmarks are likely to open in green amid market participants evaluating significant actions taken by newly inaugurated US President Donald Trump. Investors will keep close eye on export-oriented sectors such as IT, pharma, and textiles, amid Trump’s assurances regarding trade dialogue with China.

Some of the key factors to be watched:

Govt approves investment proposals worth Rs 3,516 crore from 24 companies: The Department for Promotion of Industry and Internal Trade (DPIIT) announced the government has approved investment proposals worth Rs 3,516 crore from 24 companies in the third round of applications for the production linked incentive (PLI) scheme for white goods.

Sebi considering several changes to expand scope of SSE: The Securities and Exchange Board of India (Sebi) is considering several key changes in a bid to expand the scope of the social stock exchange (SSE), including broadening the list of structures that can be recognised as non-profit organisations (NPOs), extending the validity period for registration, and revising the list of eligible activities to qualify as social enterprises.

Foreign fund outflows likely to cap upside: On January 20, FIIs/FPIs net sold India stocks worth Rs 4,336.54 crore. Thus far in January, FPIs have sold stocks worth Rs 48,023 crore. 

Sugar sector stocks will be in focus: A private report indicated that sugar prices hit their lowest in more than three years on January 20 amid reports that India will allow 1 million metric tons of sugar exports in the current season that runs through to end-September.

Railways stocks will be in limelight: The Ministry of Railways is set to launch freight-cum-passenger trains to enhance its revenue from time-sensitive parcel and small cargo shipments.

On the global front, the US markets remained closed on Monday for Martin Luther King Jr public holiday. Asian markets are trading mixed on Tuesday after US President Donald Trump said he would enact tariffs on Canada and Mexico on Feb. 1.

Back home, banking, financial and Telecom sectors drove an upward momentum in Indian equity benchmarks on Monday, with both Sensex and Nifty ending half a percent higher, with market participants awaiting Donald Trump’s inauguration as the 47th U.S. president. Finally, the BSE Sensex gained 454.11 points or 0.59% to 77,073.44, and the CNX Nifty was up by 141.55 points or 0.61% to 23,344.75.

Some of the important factors for the markets:

RBI’s article lifted sentiments in markets: The RBI in its article on the State of the Economy published in the January Bulletin has said that India’s economic growth is poised to rebound as domestic demand regains strength, though the stickiness in food inflation warrants careful monitoring.

Investors’ mood remained upbeat with a CII survey: The survey showed that India's current economic environment is conducive for private investments with the country emerging as a bright spot amid the challenging global environment.

Optimism around India’s exports growth: Commerce Secretary Sunil Barthwal has said the government's target of $1 trillion export includes $250 billion from the engineering sector. 

Street overlooked Moody's report: It has lowered India's economic growth forecast to 7% for the fiscal year ending March 2025, down from 8.2% recorded in the previous fiscal year. 

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