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Indian equity markets are likely to make cautious start on Tuesday following mixed global market cues amid uncertainty over the US-Iran peace talks. Some cautiousness may come from foreign institutional investors, who were net sellers of shares worth Rs 1,350.10 crore on Monday. 

Some of the key factors to be watched: 

Industrial output rises 5.1% in May: The Ministry of Statistics & Programme Implementation (MoSPI) in its latest report has showed that Index of Industrial Production (IIP) recorded a 5.1 percent (Quick Estimate) year-on-year growth in May 2026, which is higher than 4.9 percent growth in the month of April 2026. The growth was supported by expansion in manufacturing and electricity and gas supply. 

FTA talks with Israel, GCC bloc temporarily stalled: Commerce and Industry Minister Piyush Goyal has said that India's free trade agreement (FTA) negotiations with Israel and the six-nation GCC bloc are ‘temporarily stalled’ at present amid the West Asia crisis. However, he said active negotiations for trade pacts are underway with Chile, Mexico, the South Africa-led SACU group, the Russia-led Eurasia bloc, and Mercosur.

Indian E-commerce exports to grow $10 billion in 2-3 years: Rajesh Kumar Mishra, an additional director at the Directorate General of Foreign Trade (DGFT) has said that Indian e-commerce exports have the potential to grow by another $10 billion over the next 2-3 years. 

India’s external debt hits $762.8 billion by March 2026: The RBI data has showed that India's total external debt stood at $762.8 billion at the end of March 2026, registering an increase of $26.3 billion over the year-ago period. 

India, Maldives begin free trade agreement negotiations: The commerce department has said that India and the Maldives have began negotiations for a free trade agreement. The discussions are being conducted in virtual mode and are scheduled from June 29 to July 7.

Global front: US markets ended higher on Monday led by a record closing high in the Dow Jones as geopolitical tensions between the US and Iran eased. Asian markets are trading mixed on Tuesday as investors monitored a fragile pause in hostilities between the U.S. and Iran. 

Back home, Indian equity benchmarks ended around half percent lower on Monday as renewed hostilities between the US and Iran and rising oil prices unnerved investors. Traders overlooked exchange data that showed Foreign Institutional Investors (FIIs) bought equities worth Rs 383.76 crore on Thursday. Finally, the BSE Sensex fell 372.10 points or 0.48% to 76,728.37 and the CNX Nifty was down by 109.75 points or 0.46% to 23,946.25. 

Some of the important factors in trade: 

Crisil sees limited profitability hit for India Inc as West Asia tensions ease: Crisil Ratings in its latest report has said that the profitability impact of the recent West Asia conflict on India Inc is expected to be far lower than initially projected if the US-Iran ceasefire remains intact and energy supplies continue to normalise. 

Major infra projects see cost overrun of Rs 5.4 lakh crore: A monthly government report for May 2026 showed infrastructure projects worth above Rs 150 crore each registered a cumulative cost overrun of around Rs 5.4 lakh crore.

India’s forex reserves rise to $672.59 billion: The RBI said India's forex reserves increased by $963 million to $672.59 billion during the week ended June 19. In the previous reporting week, the overall reserves had dropped by $9.98 billion to $671.62 billion. 

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