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Indian equity markets are likely to make negative start on Monday, amid renewed tension between the US and Iran after U.S. President Donald Trump has warned that ‘the clock is ticking’ for Iran and they better get moving, FAST, or there won't be anything left of them. However, downside may be limited as Foreign Institutional Investors (FIIs) turned net buyers on May 15, 2026, with a net inflow of Rs 1,329.17 crore.

Some of the key factors to be watched: 

India's forex reserves jump by $6.295 billion: The Reserve Bank said that India's forex reserves jumped by $6.295 billion to $696.98 billion during the week ended May 8.

India's exports up 13.78% to $43.56 billion in April: Commerce Secretary Rajesh Agrawal said that Commerce Secretary Rajesh Agrawal said India’s exports in April rose by 13.78 per cent to $43.56 billion despite global challenges.

India, Sweden agree to elevate ties to strategic partnership: The report said that India and Sweden have agreed to elevate their relationship to a Strategic Partnership, as Prime Minister Narendra Modi held talks with his Swedish counterpart Ulf Kristersson, focusing on trade, technology, defence, and other key sectors.

India may negotiate Iran-backed oil corridors as Hormuz recovery looks distant: Moody's Ratings has said that India and other oil importing nations are likely to negotiate bilaterally to secure energy supplies, potentially through coordinated transit corridors, but a return to pre-war traffic volumes is unlikely in 2026. 

Govt imposes windfall tax on petrol exports: The government has imposed a windfall gains tax of Rs 3/litre on the export of petrol, while reducing the levy on diesel to Rs 16.5/litre and aviation turbine fuel to Rs 16/litre effective May 16.

Global front: The US markets ended lower on Friday as investors booked profits in technology stocks following their recent strong rally. Asian markets are trading in red on Monday, tracking weak cues from Wall Street overnight.

Back home, Indian equity benchmarks surrendered early gains to close lower on Friday due to selling in Metal, Realty and Oil & Gas shares and caution among investors amid surging crude oil prices and record low rupee. Markets also remained cautious after petrol and diesel prices were raised by Rs 3 per litre earlier in the day, reviving fears around inflation and household costs. Finally, the BSE Sensex fell 160.73 points or 0.21% to 75,237.99 and the CNX Nifty was down by 46.10 points or 0.19% to 23,643.50.  

Some of the important factors in trade: 

Goyal calls for aligning standards, customs procedures between India-Africa to boost bilateral trade: Ahead of the India-Africa Business Dialogue (IABD), Commerce and Industry Minister Piyush Goyal has called for aligning standards and customs procedures between India and Africa to boost bilateral trade. 

ECB filings halve to $5.43 billion in March: The RBI said foreign borrowing filings by companies and lenders halved to $5.43 billion in March amid financial market volatilities following the West Asia conflict.

India secures place in EU’s revised draft list for continued aquaculture exports: In a major boost for India’s aquaculture industry, the European Union (EU) has included India in its revised draft list for continued export of aquaculture products to the EU market. The earlier regulation had not included India among third countries authorised to export products of animal origin intended for human consumption to the EU from September 2026. 

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