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Indian equity markets are likely to make positive start on Tuesday supported by strong global market cues. Traders are likely to take support after US President Donald Trump said that the war on Iran would end soon. However, sentiments may remain subdued due to continued outflows from foreign investors. On March 9, Foreign Institutional Investors (FIIs) were net sellers as they sold equities worth Rs 6,345.57 crore.

Some of the key factors to be watched:

RBI injects Rs 50 000 crore durable liquidity in banking system via OMO purchases: The Reserve Bank of India (RBI) has injected Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities. The liquidity in the banking system, currently, is estimated to be in surplus of around Rs 2.41 lakh crore.

FTAs opening new markets for pharma, healthcare sectors: Commerce and Industry Minister Piyush Goyal said that the nine free trade agreements (FTAs) finalised by India in the last four years will provide huge business opportunities for the domestic pharma and healthcare sectors.

Global FTAs create new opportunities for MSMEs: Union Minister Jitin Prasada has said that recent FTAs with regions including the European Union, the United Kingdom, Australia, New Zealand and other major markets provide Indian MSMEs with access to a large share of developed markets, creating significant opportunities for Indian manufacturers to integrate into global supply chains and meet international demand.

Rising crude oil prices could cost India $7-8 billion extra per month: Crisil Ratings reportedly said that India imports 85 per cent of its crude oil, making its economy highly sensitive to global oil price movements. The country consumes around 5 million barrels per day of oil. He noted the recent rise in crude to about $120 per barrel from $66 could lead to an additional foreign currency outflow of $7-8 billion per month, widening the current account deficit and increasing import-related inflationary pressures.

India's inter-regional transmission capacity to hit 143 GW by 2027: Union Minister Shripad Naik said the country's inter-regional transmission capacity will be increased to 143 GW by 2027 and 168 GW by 2032 to ensure reliable power flow across the regions. At present, there is no transmission constraint existing at the national level, and the inter-regional transmission capacity stood at 120 GW as of December 2025.

On the global front: The US markets ended in green on Monday after U.S President Donald Trump said that U.S. war with Iran could be over soon. Asian markets are trading in green on Tuesday following the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended sharply lower for the second consecutive session on Monday as soaring crude oil prices and weak global trends due to the worsening situation in West Asia triggered a sharp sell-off in the stock market. Besides, unabated foreign fund outflows and the weakness in the rupee against the US dollar weighed heavily on investors' sentiment. Finally, the BSE Sensex fell 1352.74 points or 1.71% to 77,566.16 and the CNX Nifty was down by 422.40 points or 1.73% to 24,028.05. 

Some of the important factors in trade: 

Iran conflict could increase challenges for emerging market sovereigns: Fitch Ratings said the Iran conflict could raise additional challenges for some emerging market sovereigns in areas like energy imports, remittances and exchange rates.

Oil price surge from West Asia clashes not to have substantial impact on India’s inflation: Amidist the ongoing geo-political clashes in West Asia leading to surge in crude oil prices and its impact on India’s inflation, Finance Minister Nirmala Sitharaman has said that the impact is not estimated to be substantial at this point as the country’s inflation is near the lower bound. 

Full benefits under RoDTEP export support scheme will be restored from April 1: The Federation of Indian Export Organisations (FIEO) has said that the commerce ministry has assured that full benefits under the export support scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP), will be restored from April 1, 2026

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