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Indian equity markets are likely to make a positive start on Tuesday, amid mixed global cues. However, traders may remain cautious ahead of the possibility of a rate hike by the US Federal Reserve at its policy meeting later this week. Sentiments may remain downbeat as foreign institutional investors (FIIs) continued to remain net sellers, offloading equities worth Rs 930.90 crore on Friday. Meanwhile, the Indian financial markets were closed on Monday for the occasion of Ganesh Chaturthi.  

Some of the key factors to be watched:

India’s forex reserves jump $44.9 billion: RBI report said that India's forex reserves jumped by a record $44.903 billion to a new lifetime high of $785.706 billion during the week ended September 4.

Retail, wholesale inflation rise in August: Government data showed that retail inflation rose to 4.82 per cent in August, driven by costly onions and other food items, a trend the RBI will have to factor in when its rate-setting panel meets early next month. Also, wholesale price-based inflation increased to 9.92 per cent in August from 9.78 per cent in July.

Goyal meets Chinese commerce minister to discuss trade ties: Commerce and Industry Minister Piyush Goyal has met his Chinese counterpart Wang Wentao and discussed ways to boost trade and economic ties between the two countries.

India, Vietnam to expand defence ties through joint production of military hardware: India and Vietnam have agreed to boost their defence ties through joint production of military hardware and decided to expand bilateral trade by building stronger supply chains and widening market access.

India, Canada begin next round of talks on proposed trade pact: The report said that India and Canada have started fourth round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA), as the two sides look to conclude the talks this year.

Global front: The US markets ended lower on Monday, amid rising concerns over supply disruptions after Saudi Arabia announced the closure of a vital transport pipeline, leading to a surge in crude oil prices. Asian markets are trading mostly in green on Tuesday, despite broadly negative cues from Wall Street overnight.

Back home, Indian equity benchmarks erased most of their initial losses but ended lower on Friday as escalating West Asia tensions weighed on market sentiment and raised inflation concerns. Foreign fund outflows also dented investors' sentiment. Exchange data showed Foreign Institutional Investors (FIIs) remained net sellers on September 10, 2026, with a net outflow of Rs 438.24 crore. Finally, the BSE Sensex fell 120.83 points or 0.16% to 74,781.76 and the CNX Nifty was down by 79.70 points or 0.34% to 23,398.10.

Some of the important factors in trade: 

New IIP, PPI series should improve accuracy of GDP estimates: Amid the ongoing debate over the credibility of India’s latest GDP estimates, the International Monetary Fund (IMF) has welcomed the country’s efforts to modernise its statistical framework, and said that the incorporation of a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series should help improve the accuracy of GDP estimates. 

India, Russia fast-tracking negotiations for new bilateral investment treaty: Commerce and Industry Minister Piyush Goyal has said that India and Russia are fast-tracking negotiations for a new bilateral investment treaty (BIT) aimed at providing greater legal certainty to investors on both sides. 

India’s organised apparel retail sector expected to grow by 12-13% in FY27: Crisil Ratings in its latest report has said that India’s organised apparel retail sector is expected to grow by 12-13 percent this fiscal (FY27), moderating from the 15 per cent growth recorded in the previous year, as consumers increasingly spread discretionary spending across categories beyond clothing. 

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