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Indian equity markets are likely to make gap-up opening on Monday, amid strong global cues. Traders are likely to take support with reports stating that the United States and Iran have reached an initial agreement to end conflicts, lift restrictions on Iranian ports, and reopen the Strait of Hormuz that affects roughly one-fifth of global oil shipment. Meanwhile, investors are likely to keep a close watch on the release of the Wholesale Price Index (WPI) for May.

Some of the key factors to be watched:

India's forex reserves drop $711 million to $681.610 billion: The RBI said that India's forex reserves dropped $711 million to $681.610 billion during the week ended June 5 due to a sharp decline in foreign currency reserves.

Retail inflation inches up to 3.93% in May: The government data showing that Retail inflation inched up in May to 3.93 per cent compared to 3.48 per cent in the preceding month due to higher food prices.

Modi, Macron hold bilateral talks in France: The Ministry of External Affairs said that Prime Minister Narendra Modi held discussions with French President Emmanuel Macron on a wide range of areas, including AI, startups, trade, infrastructure, mobility and health.

Microfinance sector shows signs of recovery after seven quarters of contraction: Micro Finance Industry Network (MFIN) report said that the microfinance sector has shown early signs of recovery after a prolonged period of stress, with the industry portfolio witnessing a sequential uptick in the fourth quarter of the financial year 2025-26.

India, Switzerland discuss healthcare investment opportunities: Commerce and Industry Minister Piyush Goyal said that India and Switzerland have discussed new investment opportunities for Swiss pharma companies in the country's rapidly growing healthcare and life sciences sector.

Global front: The US markets ended higher on Friday, after U.S. President Donald Trump claimed that an U.S.-Iran interim peace agreement will be signed over this weekend and affirmed soon after that the Strait of Hormuz will reopen.  Asian markets are trading green on Monday, tracking the positive cues from Wall Street. 

Back home, Indian equity benchmarks saw strong buying momentum and ended sharply higher on Friday, in tandem with a rally in global markets and a decline in crude oil prices after US President Donald Trump declared that his country has ended the war with Iran. Finally, the BSE Sensex rose 1695.40 points or 2.30% to 75,527.95 and the CNX Nifty was up by 461.30 points or 1.99% to 23,622.90. 

Some of the important factors in trade: 

India’s growth to slow down in FY27, but still to remain fastest-growing major economy: The World Bank, in its report has said that India’s economic growth is likely to moderate to 6.6 per cent in FY27, down from 7.7 per cent in the previous year. Despite this slowdown, India is likely to retain its position as the world’s fastest-growing major economy. 

Bank credit grows over 17% in May: The Reserve Bank data showed bank credit grew 17.44 per cent year-on-year in May, marking the ninth consecutive month of double-digit expansion, reflecting sustained demand for loans from both retail and corporate borrowers. 

Need to strengthen multilateral cooperation to deal with challenges posed by conflicts: Finance Minister Nirmala Sitharaman has said that the adverse impact of conflicts and uncertainty falls disproportionately on developing countries and the Global South, and there is a need for coordinated global action to deal with it.