Opening Bell : Markets likely to make gap-down start following weak global cues
Indian equity markets are likely to make a gap-down opening on Monday, following weak global cues as renewed conflict in the Middle East dampened hopes of an end to the wider US-Iran war. Additionally, some cautiousness may come from foreign institutional investors, who were net sellers of shares worth Rs 8,776.25 crore on Friday.
Some of the key factors to be watched:
Weak monsoon may impact rural demand, consumption: The Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that a projected deficiency in the south-west monsoon could impact rural demand and private consumption, though mitigation measures are expected to cushion the effect.
India's GDP growth jumps to 7.7% in FY26: India's Gross Domestic Product (GDP) growth jumped to 7.7% in the fiscal year 2025-26 (FY26), retaining its position as the world's fastest-growing major economy despite global trade and geopolitical uncertainties.
Macro stability, supply measures can bring back India on 7% growth trajectory in FY28: Emphasizing that growth prospects depend on improvements in external conditions, Chief Economic Adviser (CEA) V. Anantha Nageswaran has said that macroeconomic stability and supply-side measures could help restore India to a 7 per cent growth trajectory by FY28.
India, U.S. may execute first phase of bilateral trade pact by middle of next month: Commerce and Industry Minister Piyush Goyal has said that India and the US are moving towards closing all the open ends of the interim trade agreement, and both sides are likely to execute the very, very vibrant first phase of the pact by the middle of next month.
Govt committed to further drive Reform Express, ensure economic momentum: Finance Minister Nirmala Sitharaman has said that the government is committed to further drive the Reform Express with decisive policy measures to ensure positive economic momentum amid global challenges.
Global front: The US markets ended lower on Friday, with the tech-heavy Nasdaq index undergoing its biggest one-day drop since April 2025. Asian markets are trading in red on Monday amid escalating war in the Middle East and surging crude oil prices.
Back home, Indian equity benchmarks ended lower on Friday after the RBI lowered its growth expectations for the current fiscal year and forecast inflation to rise to 5.1 per cent. Also adding to the bearish trend in equities were foreign fund outflows, geopolitical uncertainties and a weak trend in Asian markets. Finally, the BSE Sensex fell 116.67 points or 0.16% to 74,243.34 and the CNX Nifty was down by 49.85 points or 0.21% to 23,366.70.
Some of the important factors in trade:
India’s FDI equity inflows rise 18% to $58.84 billion in 2025-26: The Department for Promotion of Industry and Internal Trade in its data has showed that India’s Foreign Direct Investment (FDI) equity inflows rose 18 per cent to $58.84 billion in 2025-26, with investments from the United States more than doubling during the last fiscal year.
RBI keeps policy rate unchanged at 5.25%: Amid rising geopolitical tensions in West Asia and concerns over inflationary pressures, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent for the fourth time in a row.
India to bring at least 2-3 more FTAs into force over next six months: Commerce and Industry Minister Piyush Goyal has said that India will bring at least two to three more substantive free trade agreements (FTAs) into force over the next six months, while another 3-4 such pacts are to be implemented in 2027.
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