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Indian markets are likely to make a flat to positive opening on Tuesday, buoyed by easing trade tensions between the U.S. and its trading partners, along with sustained foreign inflows that continue to boost investor sentiment. Robust Q4 earnings from major companies are also lending additional support to market sentiment. However, ongoing global uncertainties and geopolitical tensions may wary the investors.

Some of the key factors to be watched:

India’s industrial growth slightly up sequentially at 3% in March: India's industrial production growth marginally accelerated to 3 per cent in March 2025 from 2.7 per cent in February.

US tariffs pushing Chinese exporters to tap Indian firms for supply goods to US: Federation of Indian Exporter Organisations (FIEO) Director General Ajay Sahai said that American sourcing firms and exporters in China are approaching Indian companies to supply goods to the US as high tariffs imposed by Washington are making it difficult for them to ship directly to America. 

Piyush Goyal begins UK visit with productive meeting on FTA talks: Commerce and Industry Minister Piyush Goyal said that he held a productive meeting to advance the ongoing Free Trade Agreement (FTA) negotiations with his UK counterpart, Business and Trade Secretary Jonathan Reynolds.

Climate change may lead to increased probability of defaults: RBI deputy governor M Rajeshwar Rao said that climate change would lead to additional operational costs for borrowers with an increased possibility of a loss of their assets, leading to an increased probability of default by borrowers.

Indian auto component industry will be in focus: Icra said that leading auto component manufacturers could take a revenue hit of up to Rs 4,500 crore in the current fiscal due to dip in overseas shipments stemming from the tariff-related impact.

On the global front: The US markets ended mostly in green on Monday as traders seemed reluctant to make significant moves as they look ahead to the release of key earnings and economic news in the coming days.  Asian markets are trading in green on Tuesday amid revived hopes for progress in trade talks and expectations of further stimulus from China. Meanwhile, U.S. Treasury Secretary Scott Bessent said that the Trump administration is working on bilateral trade deals with 17 key trading partners, not including China.

Back home, Indian equity benchmarks ended with gains of over a percent on Monday as a sharp rally in Energy, Oil & Gas stocks, and foreign fund inflows helped stock markets cut short two days of fall amid India-Pakistan border tensions. Finally, the BSE Sensex rose 1005.84 points or 1.27% to 80,218.37, and the CNX Nifty was up by 289.15 points or 1.20% to 24,328.50.                      

Some of the important factors in trade:

Sustain foreign fund inflows: Foreign Institutional Investors (FIIs) bought equities worth Rs 2,952.33 crore on Friday, according to exchange data. Foreign investors have infused Rs 17,425 crore in the country's equity markets last week, supported by a combination of favourable global cues and strong domestic macroeconomic fundamentals. 

Rising forex reserves: Reserve Bank of India (RBI) said that India's foreign exchange reserves rose $8.310 billion to $686.145 billion in the week that ended on April 18, extending gains for the seventh straight week.

RBI Governor Malhotra asks US industry to invest in India: Reserve Bank Governor Sanjay Malhotra has exhorted the US industry to invest in India, stressing that the country continues to be the fastest growing major economy supported by policy consistency and certainty. 

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