Benchmarks likely to make positive start amid FIIs inflows

Indian equity markets are likely to make a positive start on Tuesday, as traders may continue to take support from positive pre-earnings corporate updates and signs of renewed foreign investor buying. Foreign institutional investors (FIIs) turned net buyers, purchasing equities worth Rs 243.03 crore on Monday. 

Some of the key factors to be watched:

India, EU working to finish legal scrubbing of FTA text in 15-20 days: Commerce and Industry Minister Piyush Goyal said that India and the European Union (EU) are expected to complete the legal scrubbing of the free trade agreement (FTA) text in the next 15-20 days. 

EAM Jaishankar discusses bilateral ties with Bahrain: External Affairs Minister S Jaishankar met with King Hamad bin Isa Al Khalifa in Bahrain and discussed ways to further strengthen bilateral partnership.

India’s steel production, consumption grow strongly in April-June 2026: According to the Ministry of Steel, crude steel production rose to 42.1 million tonnes (MT) during April-June 2026, registering a 3 per cent increase over 40.8 MT produced during the corresponding period last year. Finished steel production also increased by 5.9 per cent to 41 MT, while hot metal production grew 1.4 per cent to 23.5 MT.

Paddy sowing down 13%, total Kharif acreage falls 21% due to low rainfall: The agriculture ministry data showed that Total sowing of kharif crops declined to 350.85 lakh hectares, a 21 per cent decrease from 442.8 lakh hectares last year, citing low rainfall amid delayed progress of the southwest monsoon.

Gold loans emerge as largest securitised asset class in Q1FY27: CRISIL Ratings report said that Gold loans emerged as the largest securitised asset class in the April-June quarter of the current fiscal, overtaking vehicle loans in the country's securitisation market.

Global front: The US markets ended higher on Monday, amid strength among technology stocks, with computer hardware stocks turning in some of the best performances. Asian markets are trading mostly in red on Tuesday, despite the broadly positive cues from Wall Street overnight.

Back home, extending gains for the fourth consecutive trading session, Indian equity benchmarks ended higher by over half percent on Monday, helped by buying in blue-chip bank stocks and lower crude oil prices. Fresh foreign fund inflows also added to the optimistic trend in domestic equity market. However, market participants remained watchful of the upcoming Q1 earnings season and key global macroeconomic developments for fresh directional cues. Finally, the BSE Sensex rose 521.16 points or 0.67% to 78,285.07 and the CNX Nifty was up by 159.50 points or 0.66% to 24,430.35.

Some of the important factors in trade:

India-Israel BIA takes effect from July 4, aims to boost bilateral investments: With an aim to ensure a secure and predictable investment climate between the India and Israel, the Finance Ministry has said that the India-Israel Bilateral Investment Agreement (BIA) came into force on July 4. 2026. 

India targeting ambitious 16-17% growth in merchandise exports in FY27: Commerce and Industry Minister Piyush Goyal has said that India is targeting an ambitious 16-17 percent growth in merchandise exports to about $530 billion in FY27. He said that the services sector is aiming for 11 percent growth to about $470 billion during FY27. 

Jaishankar discusses bilateral cooperation, regional development with Qatar's Prime Minister: The External Affairs Minister S Jaishankar has held talks with Qatar's Prime Minister Mohammed bin Abdulrahman Al-Thani and reviewed several areas of bilateral cooperation, including energy, trade, investments, connectivity and security.