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Indian equity markets are likely to make gap-down start on Monday following weak global cues and escalating conflict between the United States and Iran, along with concerns over energy supply disruptions. Some cautiousness may come amid continued foreign fund outflows, as foreign institutional investors (FIIs) offloaded shares worth Rs 5,518.39 crore on Friday.

Some of the key factors to be watched:

India's core sector growth slows down to 2.3 per cent in February 2026: According to government data India’s production growth in eight core infrastructure sectors slowed down to 2.3 per cent in February 2026 from 3.4 per cent in the same month last year. Production of crude oil, natural gas, and refinery products declined during the month. 

India's forex reserves drop $7 billion to $709.76 billion: Reserve Bank of India (RBI) said that India's forex reserves dropped $7.052 billion to $709.76 billion during the week ended March 13.  In the previous reporting week, the overall reserves had dropped $11.68 billion to $716.81 billion.

Indian firms facing shipment delays, input shortages amid Iran war: The Confederation of Indian Industry (CII) said Indian companies are facing disruptions ranging from shipment delays to shortages of key raw materials due to the ongoing West Asia conflict, and highlighted growing stress across sectors dependent on global trade flows.

Foreign investors dump Rs 88,000 crore in March: Foreign investors have pulled out Rs 88,180 crore (about $9.6 billion) from Indian equities so far in March, weighed down by escalating tensions in West Asia, a weakening rupee and concerns over the impact of elevated crude oil prices on India's growth and corporate earnings.

Govt directs faster processing of city gas projects to ease supply stress: The government has stepped up efforts to streamline gas distribution and ease supply pressures, directing faster processing of city gas projects while increasing allocations of commercial LPG to key sectors amid a challenging geopolitical environment.

On the global front: The US markets ended lower on Friday amid growing concerns over rising inflation and the possibility of increase in interest rates. Asian markets are trading in red on Monday following the broadly negative cues from Wall Street on Friday. 

Back home, Indian equity benchmarks gave up most of their intra-day gains but managed to end nearly half a per cent higher on Friday, following intense buying in IT, TECK and Healthcare stocks amid concerns over a further spike in fuel-driven inflation. However, profit booking at higher levels along with persistent foreign fund outflows trimmed most of the early gains. Finally, the BSE Sensex rose 325.72 points or 0.44% to 74,532.96 and the CNX Nifty was up by 112.35 points or 0.49% to 23,114.50. 

Some of the important factors in trade:

Govt approves Rs 497 crore RELIEF scheme amid West Asia disruptions: The government has rolled out the RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme with an outlay of Rs 497 crore to provide relief to exporters facing disruptions due to the ongoing West Asia conflict.

India-UK FTA likely to be implemented by early May; EU by year-end: The report said that the free trade agreement (FTA) between India and the UK, signed in July last year, is likely to be implemented by early May, as both sides are sorting out a few issues. 

India to pitch for strengthening WTO at upcoming ministerial: The report said that India will push for further strengthening of the WTO at the upcoming ministerial meeting in Cameroon so that it can play an important role in promoting global trade at a time when the world is witnessing turmoil due to various geopolitical factors.

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