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Indian equity markets are likely to get a gap-up opening on Tuesday after previous session’s sell-off and tracking gains in Asian counterparts. Now, investors shifted their focus to the Indian central bank's rate setting meeting later in the week. Market participants will continue to keep close eye on Q3 earnings announcements from India Inc. Meanwhile, Dr. Agarwal's Healthcare IPO will list on the bourses.

Some of the key factors to be watched:

Budget gave non-inflationary stimulus to economy, will push growth: Finance Secretary Tuhin Kanta Pandey said the FY26 Budget has given sufficient non-inflationary stimulus to the economy which will promote incremental growth.

GDP to grow by 6.5 per cent in FY26: A report by Crisil said India's economy is expected to grow at 6.5 per cent in the financial year 2025-26 (FY26), slightly higher than the 6.4 per cent growth estimated for the ongoing fiscal year (FY25).

India, UK to resume FTA talks from February 24: India and the UK are expected to resume talks on the proposed free trade agreement (FTA) from February 24.

India and Russia boost bilateral ties with high-level visits: A significant high-level meeting took place as a Russian parliamentary delegation, headed by Vyacheslav Volodin, Chairman of the State Duma, met with President Droupadi Murmu at Rashtrapati Bhavan. This event underscored the commitment to bolstering the bilateral relations between Russia and India.

India's pace of debt reduction remains gradual: Fitch Ratings said India's pace of debt reduction is gradual, which leaves open downside risks to sovereign ratings in the eventuality of a significant economic shock. 

On the global front: The US markets ended lower on Monday following Trump's tariff delay announcement. Asian markets are trading in green on Tuesday after President Donald Trump postponed tariffs on Mexico for a month, and Canada confirmed the US president had also delayed tariffs on its exports.

Back home, Indian equity benchmarks faced selling pressure throughout the day and ended with losses of around half percent each on Monday, tracking weak cues from Asian markets, as concerns over a broader trade war intensified following tariffs on Canada, Mexico, and China by US President Donald Trump. Finally, the BSE Sensex fell 319.22 points or 0.41% to 77,186.74, and the CNX Nifty was down by 121.10 points or 0.52% to 23,361.05.      

Some of the important factors for the markets:

Sustained foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 1,327.09 crore in the capital markets on a net basis on Saturday, according to exchange data. 

Rupee at record low dented investor sentiment: Indian rupee plunged 54 paise to hit record low of 87.16 (provisional) against the US dollar, as global market sentiments were impacted after the Trump administration slapped tariffs on Canada, Mexico and China.

Oil prices rose as Trump's new tariffs heighten supply concerns: Oil prices rose on Monday with US President Donald Trump's decision to impose broad tariffs by the US, the world's largest oil consumer, and uncertainty surrounding the global oil market ahead of the OPEC+ meeting.

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