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Indian equity markets are likely to make gap-up opening on Monday, tracking strong global cues. Traders are likely to adopt a wait-and-watch approach ahead of the release of India’s infrastructure output data. Additionally, some support may come from continued fund inflows by foreign institutional investors (FIIs).  

Some of the key factors to be watched:

India’s forex reserves jump $1.68 billion to $688.94 billion: The Reserve Bank of India said that India's forex reserves jumped by $1.689 billion to $688.949 billion during the week ended December 12.

India, Oman trade pact likely to be operationalised within 3 months: Commerce and Industry Minister Piyush Goyal said that India and Oman will endeavour to implement the India-Oman free trade agreement, signed on December 18, within the next three months.

India, New Zealand should target doubling bilateral trade: Think tank GTRI said that India and New Zealand should look to double bilateral trade in the next five years by reducing import duties on select products and enhance collaborations in areas like agriculture.

Goyal to visit Brussels: The report said that Commerce and Industry Minister Piyush Goyal will visit Brussels on January 8-9 next year for talks with his EU counterpart to give an impetus to a proposed trade pact, for which negotiations are in the last phase.

India's exports rebound in November on supply-chain shifts, US holiday restocking: Think tank GTRI said that supply-chain realignments and inventory restocking ahead of the US holiday season helped India's exports rebound in November.

On the global front: The US markets ended in green on Friday, amid recovery in technology stocks. Asian markets are trading in green on Monday, following the positive cues from Wall Street on Friday.

Back home, snapping 4-day losing run, Indian equity benchmarks ended higher on Friday in tandem with a rally in global markets as a lower-than-expected US consumer price inflation data for November reinforced expectations of further interest rate cuts by the Federal Reserve. Fresh foreign fund inflows along with a pullback in the Indian Rupee also drove the markets higher. Finally, the BSE Sensex rose 447.55 points or 0.53% to 84,929.36 and the CNX Nifty was up by 150.85 points or 0.58% to 25,966.40.

Some of the important factors in trade:

India signs CEPA with Oman: India and Oman signed a free trade agreement, which will provide duty free access to 98 per cent of India's exports including textiles, agri and leather goods in Oman. On the other hand, India will reduce tariffs on Omanese products such as dates, marbles and petrochemical items. 

Net direct tax collection grows 8%: The income tax department data showed net direct tax collection grew 8 per cent to over Rs 17.04 lakh crore between April 1-December 17 as refund issuances slowed.

India's trade deficit with China may reach $106 billion in 2025: Think tank GTRI said India's trade deficit with China is expected to reach $106 billion in 2025 as imports are rising faster than the country's exports to the neighbouring country.

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