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Indian equity markets are likely to make positive start on Monday supported by strong global cues despite the breakdown of peace talks between Iran and US after Trump refused to send envoys to Islamabad, Pakistan. However, some cautiousness may come amid continued foreign fund outflows, as foreign institutional investors (FIIs) offloaded shares worth Rs 8,827.87 crore on Friday. 

Some of the key factors to be watched:

India, US agree to remain engaged on trade pact: The government has said that the three-day trade talks between Indian and US officials concluded on April 23, with both sides agreeing to stay engaged to sustain the momentum ahead. 

Forex reserves jump $2.362 billion: The Reserve Bank of India (RBI) said India’s forex reserves jumped by $2.362 billion to $703.308 billion during the week ended April 17. In the previous reporting week, the forex kitty had increased by $3.825 billion to $700.946 billion.

India following diversified strategy to boost exports to China, cut import dependence: The report said India is following a diversified strategy to boost exports to China by strengthening domestic capacities while reducing import dependence through diversification of its supplier base, as complete decoupling from Beijing is difficult since Chinese inputs support the country's industrial growth.

India, New Zealand FTA to double bilateral trade: More than four months after announcing the conclusion of negotiations on December 22, 2025, India and New Zealand are set to sign their free trade agreement on April 27, aimed at doubling bilateral trade between the two countries. The pact will give India companies duty-free access to the island nation's markets, and bring in $20 billion of investment over the next 15 years.

Textiles sector’s stocks will be in watch: Think tank GTRI said the country's textiles and garment exports fell 2.2 per cent to $35.8 billion in 2025-26 due to contraction in shipments of key segments such as cotton. 

Global front: The US markets ended mostly in green on Friday lifted by strong results from Intel and hopes that a deal between the US and Iran will be struck soon. Asian markets are trading mostly in green on Monday following the mixed cues from Wall Street on Friday.

Back home, falling for the third consecutive day, Indian equity benchmarks tumbled over a per cent on Friday, as a sharp rally in crude prices and massive selling in IT counters weighed heavily on investors' sentiment. Unabated foreign fund outflows, a negative trend in global markets amid prolonged conflict and continued disruption in the Strait of Hormuz added to the gloom. Finally, the BSE Sensex fell 999.79 points or 1.29% to 76,664.21 and the CNX Nifty was down by 275.10 points or 1.14% to 23,897.95.

Some of the important factors in trade:

Conflict in West Asia, supply chain issues to pose challenges to domestic economy: The Reserve Bank of India's (RBI) April bulletin has said that ongoing conflict in West Asia and supply chain disruptions could pose challenges to the domestic economy in the form of higher energy costs, input cost pressures, disruption in trade flows and spillovers in financial markets. 

India’s engineering exports to UAE, Saudi Arabia fall in March: The EEPC data has showed that India's engineering exports plunged 66.8 per cent to the UAE and 45 per cent to Saudi Arabia in March due to the West Asia crisis, which has impacted cargo ships movement in international waters. 

India, Qatar discuss boosting trade amid West Asia crisis: Amid disruptions caused by the West Asia crisis, India and Qatar have held discussions on ways to boost bilateral trade and strengthen supply chain resilience. 

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