Markets likely to make positive start on Tuesday

Indian markets are likely to make positive start on Tuesday as India and the European Union (EU) have concluded official-level negotiations to announce deal on January 27. Besides, investors will be looking ahead to the Union Budget presentation on February 1. Meanwhile, the Indian stock markets were shut on Monday, January 26, 2026, due to Republic Day.

Some of the key factors to be watched: 

India and European Union (EU) conclude FTA talks: Commerce Secretary Rajesh Agrawal said that India and the European Union (EU) have concluded official-level negotiations for the proposed free trade agreement (FTA) which will help boost two-way commerce and strengthen economic ties between the two sides.

Forex reserves rise to $701.36 billion: The Reserve Bank of India said that India's foreign exchange reserves jumped by $14.167 billion to $701.36 billion during the week ended January 16. The overall reserves had increased by $392 million to $687.193 billion in the preceding week.

India, Russia confident to achieve $100 billion trade target by 2030: Ambassador Vinay Kumar said that India and Russia are moving confidently to achieve a target of $100 billion in bilateral trade by 2030 and steps are being taken to expand the trade basket.

FDI inflows to India surged by 73% to $47 billion in 2025: the United Nations Conference on Trade and Development (UNCTAD) said the FDI inflows to India in 2025 surged by 73 per cent to $47 billion, mainly due to large investments in services and manufacturing, supported by policies aimed at integrating the country into global supply chains.

Global energy markets stable despite geopolitical turmoil: Oil Minister Hardeep Singh Puri said that global energy markets remain stable with enough supplies to meet demand despite geopolitical upheavals, as he pitched for both producers and consumers playing a constructive role to ensure a viable and predictable market. 

On the global front: The US markets ended higher on Monday amid strong gains by Apple (AAPL), Meta Platforms (META) and Microsoft (MSFT), which moved higher ahead of the release of their quarterly results. Asian markets are trading mostly in green on Tuesday tracking overnight gains on Wall Street. 

Back home, Indian equity benchmarks resumed their downward journey and ended with losses of around a percent on Friday, dragged by widespread sell-off and the rupee depreciating to hit a record low against the US dollar. Also, unabated foreign capital outflows in the absence of domestic triggers added to the gloom. Finally, the BSE Sensex fell 769.67 points or 0.94% to 81,537.70 and the CNX Nifty was down by 241.25 points or 0.95% to 25,048.65.   

Some of the important factors in trade:

Business activity in India’s private sector accelerates in January: India’s flash Purchasing Managers’ Index (PMI) data report has showed that business activity in the country’s private sector bounced back sharply in January 2026, after losing some momentum at the end of the 2025 calendar year. 

India unlikely to suffer much even if US imposes higher tariffs: Amid concerns over US’ tariff on Indian exports, Union Minister of State (Mos) for External Affairs Kirti Vardhan Singh has said India is unlikely to suffer much even if the US imposes higher tariffs, as the strength of the Indian economy has now been realised globally, including by US President Donald Trump. 

Gold-loan NBFCs may cross Rs 4 lakh crore AUM by FY27: Crisil Ratings’ report said that Assets under management (AUM) of NBFCs specialising in gold loans are expected to grow at a CAGR of around 40 per cent between the current and next fiscal year, surpassing Rs 4 lakh crore by March 2027.