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Indian equity markets are likely to make cautious start on Tuesday amid persistent foreign fund outflows. Traders are likely to adopt a wait-and-watch approach ahead of monthly F&O expiry. However, some volatility may come from rising uncertainty over U.S. tariffs, particularly after U.S. President Donald Trump announced a 100 percent tariff on movies made outside the United States.

Some of the key factors to be watched:

Industrial production grows 4% in August: Government data showed that India's industrial production grew at 4 per cent in August, mainly due to better performance by the mining sector.

India initiates anti-dumping probe into import of solar cell component, mobile covers from China: The Commerce Ministry's arm DGTR has initiated an anti-dumping probe into the import of a solar component and mobile covers from China, following complaints by RenewSys India and All India Mobile Cover Manufacturer Association.

FTA talks going on with several countries, including US: Commerce and Industry Minister Piyush Goyal has said that India is negotiating free trade agreements (FTAs) with a number of countries including the US, New Zealand, Oman, Peru, Chile, and the European Union.

GST reforms will boost market purchasing and economy: Minister of State for Finance Pankaj Chaudhary said that the recent GST reforms will spur market consumption and boost the domestic economy. He also said that the impact of these reforms will be known in the next four to six months.

Textiles Minister to hold talks with Russian Trade Ministry this week: Textiles Minister Pabitra Margherita will visit Moscow this week to hold a meeting with Russia's Ministry of Industry and Trade and entrepreneurs of the textile and apparel industry.

On the global front: The US markets ended in green on Monday, supported by surge in tech stocks, with AI darling and market leader Nvidia (NVDA) jumping by 2.1 percent. Asian markets are trading mostly in green on Tuesday, as investors await GDP growth data from the UK, the Australian central bank's decision on interest rates.

Back home, after altering between gains and losses, Indian equity benchmarks closed marginally lower on Monday, extending their downtrend to the seventh straight day, as TECK stocks were dragged by persistent foreign fund outflows ahead of the RBI's interest rate decision later this week. Finally, the BSE Sensex fell 61.52 points or 0.08% to 80,364.94 and the CNX Nifty was down by 19.80 points or 0.08% to 24,634.90. 

Some of the important factors in trade: 

FPIs remain net sellers: Foreign portfolio investors (FPIs) stayed net sellers of Indian shares for a fifth consecutive session on Friday. The overseas investors sold stocks worth approximately Rs 5,687.58 crore, according to exchange data. 

Government to borrow Rs 6.77 lakh crore in second half of FY26: The Government of India is planning to borrow Rs 6.77 lakh crore in the second half of the fiscal year 2025-26 through dated securities, including Rs 10,000 crore through issuance of Sovereign Green Bonds (SGrBs).

High tariffs imposed by US on Indian goods pose major risk to country's growth: Crisil Intelligence in its report has said that high tariffs imposed by the United States (US) on Indian goods pose a major risk to the country's growth. It added that the tariffs will impact both Indian goods exports and investments.

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