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Indian equity markets are likely to make a negative start on Monday tracking mixed cues from global markets. Investors may remain cautious as fresh military escalation between the US and Iran kept concerns around energy supplies and the Strait of Hormuz in focus. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on September 4, 2026, with a net outflow of Rs 3,111.94 crore.

Some of the key factors to be watched: 

RBI absorbs Rs 6.02 lakh crore via 2 VRRRs as banking system liquidity surplus hits record high: The Reserve Bank of India (RBI) has absorbed over Rs 6.02 lakh crore from the banking system through two variable rate reverse repo (VRRR) auctions as surplus liquidity remained at a record high.

India's forex reserves hit new all-time high of $740.8 billion: The RBI said India's forex reserves jumped $11.475 billion to a new all-time high of $740.803 billion during the week ended August 28.

India, Belgium should work together on Lab-Grown Diamonds: Union Commerce Minister Piyush Goyal has suggested India and Belgium should work together on the lab-grown diamonds front. He said the two countries need to work on technology and certification aspects of lab-grown diamonds.

India considers liberalizing FDI in plantation sector: The report said the government is considering liberalising foreign direct investment (FDI) norms in the plantation sector by bringing more commercial crops under the ambit. 

Goyal calls for pharma sector to attract more investment in clinical trials, R&D: Commerce and Industry Minister Piyush Goyal has called for making the pharmaceutical sector more attractive for investments in clinical trials and research and development, while urging domestic regulators to look at global practices and adopt best practices.

Global front: The U.S. markets ended lower on Friday as a stronger-than-expected jobs report boosted expectations that the U.S. Federal Reserve could raise its key interest rate at this month’s monetary policy meeting. Asian markets are trading mostly in green on Monday, despite the broadly negative cues from Wall Street on Friday. 

Back home, snapping four-day losing streak, Indian equity benchmarks ended on positive note on Friday following gains in global stock markets as concerns over an imminent U.S. Fed rate hike eased. However, gains remained capped due to foreign fund outflows and persistent geopolitical tensions in the Middle East. Finally, the BSE Sensex rose 362.57 points or 0.48% to 76,515.43 and the CNX Nifty was up by 24.25 points or 0.10% to 23,897.70.  

Some of the important factors in trade: 

Preferential tariff terms key to finalising India-US trade pact: With an aim to fast-track the bilateral trade pact process, Commerce and Industry Minister Piyush Goyal has said details of the Bilateral Trade Agreement (BTA) with the US will be announced once Washington offers India preferential terms over its competitors. 

India's banking system liquidity surplus surges to record Rs 9.71 lakh crore as of September 2: The Reserve Bank of India's (RBI) data showed that India’s banking system liquidity surplus has rose to a record high of Rs 9.71 lakh crore as on September 2, 2026, surpassing the previous peak of Rs 9.21 lakh crore recorded in September 5, 2021. The record surplus was primarily boosted by inflows from the RBI's FCNR (B) scheme. 

India, South Africa aim to expand economic ties, address trade imbalance: Aiming to deepen India-South Africa bilateral ties, South African BRICS Business Council (SABBC) is set to visit New Delhi to explore opportunities to expand economic ties with India and address the trade imbalance between the two countries.

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