IGI Logo

Indian equity markets are likely to make a cautious start on Tuesday, despite strong rally in global market. Traders are likely to take cautious approach ahead of the monthly F&O expiry. Additionally, some cautiousness may come from foreign institutional investors (FIIs), who were net sellers of shares worth Rs 4,171.75 crore.

Some of the key factors to be watched:

India, Afghanistan discuss ways to boost textile trade: Bipin Menon, Trade Advisor, Ministry of Textiles said that India and Afghanistan have discussed ways to increase textile trade, with Kabul expressing interest in tapping into India's expertise as the world's second-largest cotton producer.

Non-US markets emerge as new growth engine for India’s marine exports: Commerce ministry data said that India's marine sector exports rose by 16.18 per cent to $4.87 billion during April-October this fiscal mainly on account of healthy growth in non-US markets, including China, Vietnam, Russia, Canada and the UK.

India-Israel FTA push should focus on strategic sectors, not merchandise trade: Think tank GTRI said that the renewed push by India and Israel to restart free trade agreement (FTA) talks should be guided more by strategic cooperation in areas such as defence manufacturing, electronics, semiconductors, water and irrigation technology, precision agriculture, and cybersecurity than by gains in merchandise trade.

Sales growth of listed private non-financial companies up 8% in Q2: The RBI said that sales growth of listed private non-financial companies rose 8 per cent during the second quarter of the current fiscal against 5.5 per cent in the preceding three months, led by improvement in all major sectors.

NBFCs to maintain AUM growth despite cautions arising from high customer leverage: Crisil Ratings said that non-bank finance companies (NBFCs) are likely to maintain growth in assets under management at 18 per cent, despite a cautious approach on lending in certain buckets due to high customer leverage. 

On the global front: The US markets ended in green on Monday amid continued optimism about rate cut by the Federal Reserve (Fed) at its next monetary policy meeting in December. Asian markets are trading mostly in green on Tuesday, amid signs of progress toward an agreement to end the protracted war between Russia and Ukraine.

Back home, Indian equity benchmarks erased gains and ended lower for the second consecutive session on Monday amid last-minute selling by cautious investors and lack of any major triggers. Traders also remained caution ahead of key global events and the monthly derivatives expiry. Besides, exchange data showed foreign institutional investors (FIIs) sold equities worth Rs 1,766.05 crore on a net basis on Friday.  Finally, the BSE Sensex fell 331.21 points or 0.39% to 84,900.71 and the CNX Nifty was down by 108.65 points or 0.42% to 25,959.50.

Some of the important factors in trade:

India's merchandise exports drop 11.8% in October after US tariff hike: Crisil in its latest report has said that India's merchandise exports fell 11.8 per cent year-on-year, since August 2024, to $34.38 billion in October 2025. 

India, Canada to resume FTA talks: Commerce and Industry Minister Piyush Goyal has said that India and Canada have agreed to resume negotiations for a Free Trade Agreement (FTA) with an aim to increase the two-way trade to USD 50 billion by 2030. 

India's GDP likely to grow 6.5% in FY26: S&P Global Ratings has projected India's gross domestic product (GDP) to grow 6.5 per cent in the current fiscal year (FY26) and 6.7 per cent in the next, saying tax cuts and monetary policy easing will give a boost to consumption-driven growth.

Above views are of the author and not of the website kindly read disclaimer