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Indian equity markets are likely to make positive start on Monday, amid strong global cues. Traders are likely to adopt a wait-and-watch approach ahead of the Reserve Bank of India’s Monetary Policy Committee meeting and the upcoming industrial production data.

Some of the key factors to be watched:

RBI may go for 25 bps rate cut as inflation likely to remain benign: A SBI research report has pitched for a 25-bps rate cut, saying it is the best possible option for the RBI as retail inflation is expected to remain benign even in the next financial year.

Recent GST rate cuts to help lower inflation by next year: The Finance Ministry said that recent GST rate cuts will help lower inflation over the next year and also bring a further upside bias to the country's growth prospects.

World to increasingly require global workforce, new trade arrangements will emerge: External Affairs Minister S Jaishankar has said that the world will increasingly require a global workforce and new trade arrangements would emerge despite uncertainties, as he underscored India's expanding engagement with Latin America and the Caribbean to diversify economic ties amid shifting global dynamics.

India’s Forex reserves drop by $396 million to $702.57 billion: RBI data showed that India's forex reserves dropped by $396 million to $702.57 billion for the week ended September 19.

US tariffs pose major risk to India's growth: Crisil Intelligence in its report said that high tariffs imposed by the United States on Indian goods pose a major risk to the country’s growth. 

On the global front: The US markets ended in green on Friday after Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.3 percent in August after rising by 0.2 percent in July. Asian markets are trading mostly in green on Friday, tracking gains in US Markets overnight.

Back home, Indian equity benchmarks tumbled nearly 1 per cent on Friday, marking their sixth consecutive day of decline, following heavy selling in Telecom, IT and Healthcare shares. Most pharma shares dropped after Trump's move to impose 100 per cent import tariffs on pharmaceutical drugs from October 1. Relentless foreign fund outflows and US H-1B visa fee concerns also added to the bearish trend in domestic equities. Finally, the BSE Sensex fell 733.22 points or 0.90% to 80,426.46 and the CNX Nifty was down by 236.15 points or 0.95% to 24,654.70.     

Some of the important factors in trade: 

India's resilience stands out amid increased global uncertainties: Finance Minister Nirmala Sitharaman said India's resilience stands out due to its strong macroeconomic fundamentals amid increasing global uncertainties.

India's logistics cost estimated at 7.97% of GDP: Department for Promotion of Industry and Internal Trade (DPIIT) report said that the country's logistics cost is estimated at 7.97 per cent of India's gross domestic product (GDP) in 2023-24.

India, US trade pact talks continue: The Commerce Ministry said India and the US have discussed various aspects of the proposed trade agreement, and both sides have decided to continue their engagements to achieve early conclusion of a mutually beneficial trade pact.

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