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Indian equity markets are likely to make a gap-up opening on Monday supported by stronger-than-expected Q2 GDP growth, and Crisil has raised its forecast for the country's GDP growth to 7 per cent from 6.5 per cent for the current financial year. However, traders are likely to adopt a wait-and-watch approach ahead of the release of India's November PMI final data.

Some of the key factors to be watched:

India's GDP grows 8.2% in Q2FY26: The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its latest data has showed that India’s economy grew by 8.2 per cent in July-September quarter (Q2) of the fiscal year 2025-26 against the growth rate of 5.6% during Q2 of FY2024-25.

Government reforms, manufacturing push lift Q2 growth to 8.2%: Commerce and Industry Minister Piyush Goyal said a host of steps and reforms undertaken by the government to improve ease of doing business have helped the economy post an 8.2 per cent growth in the July-September quarter of the current fiscal.

India’s GDP to cross $4 trillion mark in FY26: Buoyed by more-than-expected 8.2 per cent GDP growth rate in the second quarter, Chief Economic Adviser V Anantha Nageswaran has expressed optimism that India's economic growth will exceed 7 per cent this fiscal and the size of the GDP will cross the $4 trillion mark.

CII urges government to set up finance institution, tech fund to promote green economy: Industry body CII has urged the government to set up a dedicated finance institution and tech expo fund to support initiatives related to promoting the green economy, as there are significant gaps in long-term and low-cost capital availability in the country.

India’s forex reserves decline $4.47 billion: The RBI said that India's forex reserves declined $4.472 billion to $688.104 billion during the week ended November 21 due to a steep decrease in the value of gold reserves.

On the global front: The US markets ended higher on Friday amid optimism about the Federal Reserve lowering interest rates at its next monetary policy meeting in December. Asian markets are trading mostly in green on Monday, tracking positive cues from Wall Street.

Back home, Indian equity benchmarks ended flat with negative bias on Friday as fresh foreign fund outflows and largely muted global market trends kept the stock markets rangebound. Foreign institutional investors sold equities worth Rs 1,255.20 crore on a net basis on Thursday, according to exchange data. Finally, the BSE Sensex fell 13.71 points or 0.02% to 85,706.67 and the CNX Nifty was down by 12.60 points or 0.05% to 26,202.95. 

Some of the important factors in trade:  

States' capital outlay to grow: Crisil Ratings’ report stated that capital outlay of states is expected to grow from four per cent to six per cent in the current financial year touching approximately Rs 7.5 lakh crore. 

India to lead emerging market growth with 7% GDP rise in 2025: Moody's Ratings has said with a 7 per cent GDP expansion in 2025 and 6.4 per cent in the next year, India will lead growth among emerging markets and across the Asia Pacific region.

Textile stocks remain in watch: The government has approved the Textiles Focused Research, Assessment, Monitoring, Planning and Start-up (Tex-RAMPS) Scheme, to strengthen research, innovation and competitiveness in textiles sector.

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