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Indian equity markets are likely to make flat-to-positive start on Tuesday, amid optimistic global cues. Traders are likely to take continue support from reports that the U.S. and Iran have reached an agreement to end more than three months of war. Additionally, sentiment may remain upbeat as foreign institutional investors (FIIs) were net buyers of equities worth Rs 200.05 crore on Monday.

Some of the key factors to be watched:

India's engineering exports jump 24% to $12.31 billion in May: Industry body EEPC India said that India's engineering goods exports jumped 24.48 per cent to $12.31 billion in May 2026, from $9.89 billion in the year-ago period

India, UK working to resolve issues for trade pact implementation: Commerce Secretary Rajesh Agrawal said that India and the UK are discussing issues hindering the implementation of the free trade agreement, which was signed in July last year.

India’s exports rise to 6-month high of 18% in May: India's exports climbed to a six-month high of 18 per cent to $45.2 billion in May, while trade deficit widened to $28.21 billion, driven by increased imports of petroleum products amid higher crude oil prices.

India's trade with West Asia gradually improving: Commerce Secretary Rajesh Agrawal said that India's trade with West Asia contracted in May due to disruptions caused by the US-Iran conflict, though it is showing signs of a gradual recovery.

Unemployment rate marginally dips to 5.5% in May: The Periodic Labour Force Survey (PLFS) released by the National Statistical Office showed that the overall unemployment rate for persons aged 15 years and above declined marginally to 5.5% in May, compared with 5.6% in the corresponding month of the previous year.

Global front: The US markets ended higher on Monday, following news the U.S. and Iran have reached an agreement to end more than three months of war.  Asian markets are trading mostly in green on Tuesday, tracking the positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks rose for the second straight session and settled with gains of around a percent on Monday, propelled by a rally in global equities and a sharp decline in crude oil prices after the US and Iran finalised a deal to end their 107-day war. Finally, the BSE Sensex rose 736.38 points or 0.97% to 76,264.33 and the CNX Nifty was up by 231.00 points or 0.98% to 23,853.90. 

Some of the important factors in trade: 

Piyush Goyal calls on French businesses to increase investments in India’s manufacturing sector: In a bid to enhance bilateral investments and strengthen economic cooperation with France, Commerce and Industry Minister Piyush Goyal has called on French businesses to increase their investments in India’s manufacturing sector.

India, Switzerland discuss investment opportunities for Swiss pharma companies in India: India and Switzerland have held talks focused on strengthening innovation, as well as on new investment opportunities for Swiss pharma companies in India's rapidly growing healthcare and life sciences sector. 

May WPI Inflation hits 9.68% amid higher food, fuel prices: India's wholesale price index (WPI) inflation surged to 9.68 per cent in May 2026 under a new revised series, with higher food and fuel prices amid the continuing Middle East tensions due to the US-Iran war that inflated global crude prices and strained supply chains. India's wholesale inflation was 8.26% in April 2026.

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