Benchmarks to make cautious start amid weak global cues

Indian markets are likely to make a cautious start on Tuesday. The subdued global cues may lead to some selling pressure in early trade, while profit-booking at higher levels could also weigh on sentiment. However, strength in key sectors such as banking and IT is likely to provide support and limit the downside. Additionally, the continued inflow of funds from Foreign Institutional Investors (FIIs) may further boost market sentiments.

Some of the key factors to be watched:

Key infrastructure sectors' growth slows to 3.8 % in March: The output of eight key infrastructure sectors slowed down to 3.8 per cent in March, as against 6.3 per cent growth registered a year ago on account of moderate expansion in sectors like coal and crude oil.

India actively engaging with US: Finance Minister Nirmala Sitharaman said India is actively engaging with the new US administration and hopes to conclude the first tranche of the bilateral trade agreement positively by fall (September-October) this year.

EPFO adds 16.10 lakh net members in February: Employees' Provident Fund Organisation (EPFO) added 16.10 lakh net members in February, marking a 3.99 per cent increase compared to the same month last year.

GTRI says India must engage with China, US: Think tank GTRI said India should engage with China and the US on equal terms and the engagement should be guided by its strategic autonomy, economic interest and global trade principles, not by external pressure.

Steel stocks will be in focus: Government of India imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports.

On the global front: The US markets ended in red on Monday amid lingering concerns about a global trade war as traders await signs of progress from President Donald Trump's trade talks. Asian markets are trading mixed on Tuesday following the broadly negative cues from Wall Street overnight.

Back home, Indian equity benchmarks surged over a per cent on Monday, registering their fifth day of rally on the back of buying in Oil & Gas, Power and IT shares. Finally, the BSE Sensex rose 855.30 points or 1.09% to 79,408.50, and the CNX Nifty was up by 273.90 points or 1.15% to 24,125.55.           

Some of the important factors in trade:

Encouraging quarterly earnings: HDFC Bank shares climbed around 1 per cent after the leading private lender reported a 7 per cent growth in its consolidated net profit for the March quarter to Rs 18,835 crore. Infosys shares rallied over 2 per cent after the company's March quarter net profit rose by 3.3 per cent sequentially. 

RBI to monitor rapidly evolving global situation: Amid the ongoing tariff war, Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that the central bank will continuously monitor the rapidly evolving global situation and remain 'agile and proactive' in its policy actions.

India needs to create 8 to 10 million jobs annually: Prime Minister Narendra Modi's Principal Secretary PK Mishra emphasized the need for 8-10 million annual job creations in India, urging IIM Sambalpur students to acquire technical knowledge and practical skills.