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Indian equity markets are likely to make gap-down opening on Tuesday, amid weak global cues. Traders are likely to take cautious approach ahead of the US Federal Reserve meeting. Additionally, some cautiousness may come from foreign portfolio investors, who recorded net sales of equities worth Rs 656.59 crore on Monday.

Some of the key factors to be watched:

Agri growth estimated to be lower at 4% in FY26: Ramesh Chand, member of government think tank Niti Aayog, said that India's agriculture sector growth is estimated to be lower at 4 per cent in the 2025-26 financial year compared to the rate of 4.6 per cent recorded in the previous fiscal.

India, Chile discuss progress of trade pact talks: The report said that India and South American country Chile has reviewed the progress of a proposed trade pact between the two countries.

India, EU hold talks on proposed trade pact: Commerce and Industry Minister Piyush Goyal and EU Trade Commissioner Maros Sefcovic held discussions on the issues related to the proposed trade pact. Maros is leading a delegation of EU officials in New Delhi for the trade talks. These meetings are important as both sides are eager to conclude the negotiations as early as possible.

RBI to conduct USD INR swap auction of $5 billion to inject liquidity: The Reserve Bank has announced it will conduct a USD/INR buy-sell swap auction of $5 billion (about Rs 45,000 crore) on December 16 to inject liquidity. The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side.

Telecom stocks will be in focus: Telecom Regulatory Authority of India (TRAI) has rejected the Department of Telecom's view, suggesting a 5 per cent annual spectrum fee to be charged from satcom (satellite communications) players instead of 4 per cent, and let go of a Rs 500 fee per connection in urban areas.

On the global front: The US markets ended in red on Monday, ahead of Federal Reserve's monetary policy decision on December 10. Asian markets are trading mostly in red on Tuesday, tracking week global cues from Wall Street overnight.

Back home, Indian equity benchmarks opened weak and drifted lower throughout the session on Monday as investors rushed to take profits amid the unabated selling of stocks by foreign investors. The sustained weakness in the rupee and lingering uncertainty over the India-US trade deal kept investors sentiment fragile. Investors also turned cautious ahead of this week's US Federal Reserve policy decision. Finally, the BSE Sensex fell 609.68 points or 0.71% to 85,102.69 and the CNX Nifty was down by 225.90 points or 0.86% to 25,960.55.      

Some of the important factors in trade:

India’s forex reserves drop by $1.88 billion to $686 billion: RBI said that India's forex reserves dropped by $1.88 billion to $686.23 billion during the week ended November 28. In the previous reporting week, the overall reserves had declined by $4.47 billion to $688.10 billion.

Russia agrees to give greater market access to Indian goods: The reports showed Russia has agreed to give greater market access to Indian goods to address India’s concerns over the increasing trade deficit in Moscow’s favour as boosting economic cooperation was the central focus of summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.  

Auto stocks in watch: FADA has said that automobile retail sales sustained momentum post festive period with registrations rising 2 per cent year on year in November 2025 led by robust demand for passenger vehicles, three wheelers, commercial vehicles and tractors.

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