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Indian equity markets are likely to make a flat to positive start on Tuesday, amid favorable global cues. However, some volatility may come in markets due to growing concerns over US President Donald Trump’s tariff plans and escalating US-China trade tensions. Furthermore, market sentiments may remain cautious due to outflows from Foreign Institutional Investors (FIIs). 

Some of the key factors to be watched:

Indian economy to be close to $30 trillion by 2047: The G20 Sherpa Amitabh Kant said that India's economy, which is currently $4 trillion in size, is expected to be close to $30 trillion by 2047 and the country also has the advantage of younger demographics.

India committed to enduring, future-ready partnerships with all BRICS nations: India reiterated its commitment to build enduring and future-ready partnerships with all BRICS nations at a multilateral meeting of communications ministers in Brasilia.

India, US desire to give preferential market access to businesses: Commerce Minister Piyush Goyal has said that India and the US desire to give preferential market access to each other's businesses and teams of both countries are working together on the proposed bilateral trade agreement.

IBBI notifies amendments to streamline corporate insolvency process: Insolvency and Bankruptcy Board of India (IBBI) has notified amendments to the regulations governing corporate insolvency, aiming to streamline procedures, protect creditor interests, and encourage greater investor participation in resolution processes.

Trump's proposed 50% tariff hike may hit $5 billion engineering exports: The Engineering Export Promotion Council of India said that US President Donald Trump's proposed 50 per cent tariff on steel and aluminium imports could severely impact India's engineering goods' shipments.

On the global front: The U.S. markets ended in green on Monday, as market participants digested President Donald Trump’s doubling of tariffs on America’s steel and aluminum imports. Asian markets are trading mostly in red on Tuesday, following overnight gains on Wall Street, despite growing signs of escalating global trade tensions.

Back home, Indian equity benchmarks ended flat with negative bias on Monday amid concerns over US President Donald Trump's fresh tariffs on steel imports. Markets made gap-down opening and remained sluggish amid heightened geopolitical tensions after Ukraine launched a major drone strike on Sunday, destroying 40 key Russian aircraft. Finally, the BSE Sensex fell 77.26 points or 0.09% to 81,373.75 and the CNX Nifty was down by 34.10 points or 0.14% to 24,716.60.

Some of the important factors in trade:

Doubling tariff on steel, aluminium by US to impact Indian exporters: The Global Trade Research Initiative (GTRI) has said that US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, as it would hurt their profitability. On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4.

India’s manufacturing activity slows down slightly in May: India’s manufacturing activity slowed down slightly in the month of May 2025 with HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to three-month low of 57.6 from 58.2 in April 2025 amid softer growth of new orders and production. 

Gross GST collections grow 16.4 per cent to over Rs 2.01 trillion in May: The Gross GST collections has grown 16.4 per cent in May to over Rs 2.01 trillion as compare to Rs 1.72 trillion in May 2024. It has remained above the Rs 2 trillion mark for the second month in a row.

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