Indian markets are likely to make a pessimistic start on Tuesday amid elevated oil prices overnight, West Asia peace deal uncertainty, and continued foreign investor outflows. The NSE data showed that foreign institutional investors (FIIs) sold a total of Rs 3,911.68 crore worth of assets across the exchanges in a single day during Monday’s trading session.
Some of the key factors to be watched:
Industrial output growth lowers to 4.9% in April: The government data showed that India’s industrial production expanded at a slower pace of 4.9 per cent in April due to tepid growth in the energy sector amid the West Asia crisis. This is the first data released after the revision in base year to 2022-23.
India, Oman free trade pact comes into force: The free trade agreement between India and Oman came into force on June 01, 2026. The India-Oman Comprehensive Economic Partnership Agreement (CEPA) will benefit domestic exporters in sectors such as textiles, leather, plastics, marine products, automobiles, sports goods, and agri-items, as they gain preferential access to the Omani market over competitors
Govt achieves fiscal deficit target of 4.4% for FY26: The government has achieved its fiscal deficit target of 4.4 per cent of the GDP for 2025-26. In the revised estimates (RE) presented in Parliament in February, the government pegged the fiscal deficit, or gap between expenditure and revenue, at Rs 15,58,492 crore or 4.4 per cent of gross domestic product (GDP).
India-US trade deal nears completion: India and the United States are on the verge of finalizing the first tranche of a long-awaited bilateral trade agreement, with Union Commerce and Industry Minister Piyush Goyal confirming that all major points between the two sides have been settled.
UK Trade Secretary Peter Kyle to visit India to ramp up FTA implementation: The British government said UK Business and Trade Secretary Peter Kyle will visit New Delhi this week to ramp up the implementation of the bilateral Free Trade Agreement (FTA) and unlock a timely boost for both economies.
Global front: The US markets ended higher on Monday after ISM's manufacturing PMI rose to 54.0 in May from 52.7 the previous month, beating expectations to reach the highest level in four years. Asian markets were trading mixed on Tuesday as uncertainty over whether the ceasefire in the West Asia conflict capped the lift to sentiment from renewed optimism around AI.
Back home, falling for the fourth straight session, Indian equity benchmarks ended over half percent lower on Monday due to selling in Power, Capital Goods and Utilities shares amid elevated crude oil prices and uncertainty over the US-Iran 60-day ceasefire. Also, exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 21,105.86 crore on Friday. Finally, the BSE Sensex fell 508.40 points or 0.68% to 74,267.34 and the CNX Nifty was down by 165.15 points or 0.70% to 23,382.60.
Some of the important factors in trade:
India’s manufacturing PMI hits 3-month high in May: A monthly survey said the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) posted 55.0 in May, above the April reading of 54.7, indicating the strongest improvement in the sector's health in three months.
Govt’s gross GST collections up 3.2% to Rs 1.94 lakh crore in May: The government data has showed that gross goods and services tax (GST) collections rose 3.2 per cent to Rs 1,94,184 crore in May 2026 as compared to Rs 1,88,172 crore in May 2025.
Bank credit to industry registers 15.1% growth in April: The Reserve Bank of India (RBI) in its latest data has showed that bank credit to industry recorded a year-on-year (y-o-y) growth of 15.1 per cent by the end of April 2026, sharply higher than 7 per cent growth recorded in the year-ago period.
