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Indian equity markets are likely to make flat-to-positive start on Tuesday, ahead of the weekly F&O expiry. Traders are likely to take support from the U.S. Ambassador’s positive comments on the India-U.S. trade deal. However, sentiments may remain subdued due to continued outflows by foreign institutional investors.

Some of the key factors to be watched:

India’s net direct tax collection surges 8.82% in current fiscal: Income Tax Department data showed that net direct tax collection grew about 8.82 per cent to over Rs 18.38 lakh crore in the current fiscal till January 11 due to slower refunds and better corporate tax mop-up. 

India’s economy to grow at 7% in FY27: BMI, a Fitch Group company, has forecasted a 7.4 per cent growth for the current fiscal and 7 per cent for FY27 saying a favourable policy environment bodes well for India's economic outlook.

India and Germany deepen cooperation in postal, express and logistics services: India and Germany have taken a significant step towards strengthening bilateral cooperation in the postal, express and logistics sector with the signing and exchange of two key instruments on January 12, 2026 at Ahmedabad. 

Credit-deposit ratio of banks rises to 82%: SBI Research Report said that India's Credit-Deposit (CD) ratio has been increasing continuously since 2000-01 from 53 per cent to 82 per cent as of December 15, 2025, which signifies a better financial development and lead to strong economic growth.

Retail inflation rises to 1.33% in December: Government data showed that Retail inflation rose to a three-month high of 1.33 per cent in December 2025 mainly due to higher prices of kitchen essentials, including vegetables and protein-rich items.

On the global front: The US markets ended in green on Monday ahead of the U.S. core inflation data, which due later in a day. Asian markets were trading in green on Tuesday, tracking strong cues from Wall Street overnight.

Back home, Indian equity benchmarks staged a strong comeback, recovering sharply from initial losses to close Monday’s session with decent gains, propelled by bargain hunting in Metal, Basic Materials and PSU stocks. However, escalating geopolitical tensions and unrelenting foreign fund outflows restricted the further gains. Finally, the BSE Sensex rose 301.93 points or 0.36% to 83,878.17 and the CNX Nifty was up by 106.95 points or 0.42% to 25,790.25. 

Some of the important factors in trade: 

India’s exports to China register 33% growth in April-November of FY26: Signalling a structural shift in India-China bilateral trade relationship, the commerce ministry’s data has showed that China is gradually emerging as preferred export partner for India, with merchandise exports surging by 32.83 per cent to $12.22 billion during April-November of FY26.

Number of FTAs to provide better market access for India’s agri food processing sectors: Minister of State for Commerce and Industry Jitin Prasada has said that the number of free trade agreements (FTAs) signed and implemented by India will provide better market access to the domestic agri and food processing sectors. 

India needs to focus on generating skilled jobs, improving employment quality in short-term: Charting India’s path to inclusive growth, S Mahendra Dev, chairman of Economic Advisory Council to the Prime Minister (EAC-PM), has said that the country’s short-term goals include generating skilled jobs and improving employment quality. 

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