Indian equity markets are likely to make a negative start on Monday, as oil prices rose following the escalation of US-Iran tensions. Traders are likely to remain cautious, as foreign institutional investors (FIIs) were net sellers for the fifth consecutive session on July 17, offloading Indian equities worth Rs 376 crore. Meanwhile, the government will unveil revamped Index of Core Industries (ICI) with 2022–23 as the base year on July 20. The revised series expands the ICI basket from eight to nine core industries with the addition of iron ore.
Some of the key factors to be watched:
India's forex reserves rise by $964 million to $675.15 billion: The Reserve Bank said that India's forex reserves jumped $964 million to $675.15 billion in the week ended July 10.
India-EU Investment Protection Pact, GI agreement work in progress: Commerce and Industry Minister Piyush Goyal said India and the European Union (EU) are working on the proposed investment protection and GI (Geographical Indications) agreement after concluding a free trade agreement.
India's export growth led by ASEAN & Africa in FY27: The commerce ministry data showed that Asean and African regions emerged as the biggest contributors to India's export growth during the first two months of the current fiscal. During April-May 2026-27, exports rose 16.09 per cent year-on-year to $88.91 billion.
India, Spain to fast-track UPI-Bizum interoperability talks: The Commerce Ministry said that India and Spain have agreed to fast-track discussions on enabling interoperability between India's Unified Payments Interface (UPI) and Spain's Bizum digital payments platform.
Semicon 2.0 equity norms to boost chip design investment: Ministry of Electronics and IT Secretary S Krishnan said Provisions under Semicon 2.0 to provide incentives to Indian chip-making firms against equity are expected to drive largescale investment required for the development of advanced chips for technology such as artificial intelligence.
Global front: The US markets ended in red on Friday as continued weakness in technology stocks and renewed geopolitical tensions weighed on investors’ sentiments. Asian markets are trading mixed on Monday as traders assessed the geopolitical tension in West Asia.
Back home, Indian equity benchmarks ended on strong note with gains of over a percent on Friday as broad-based buying in heavyweight banking, Realty and IT stocks helped benchmark indices outperform weak global cues. Investor sentiment remained resilient despite persistent concerns over elevated AI valuations and ongoing geopolitical tensions in the Middle East. Finally, the BSE Sensex rose 964.58 points or 1.25% to 78,151.45 and the CNX Nifty was up by 261.55 points or 1.09% to 24,334.30.
Some of the important factors in trade:
India, EU likely to sign FTA by end-2026: In a move to fast-track efforts to strengthen bilateral ties, Commerce and Industry Minister Piyush Goyal has said that India and the European Union (EU) have agreed to sign the Free Trade Agreement (FTA) by the end of calendar year 2026. He noted that the pact is likely to come into force in the first quarter of 2027, likely during February-March.
Govt to introduce MSMEs Development (Amendment) bill to enhance ease of doing business: With an aim to enhance ease of doing business for micro, small and medium enterprises (MSMEs), the government is planning to introduce the MSMEs Development (Amendment) Bill, 2026 and put it to a vote in the upcoming Monsoon Session of Parliament.
Crisil Ratings sees muted revenue growth for India's IT services sector: Crisil Ratings in its latest report has said that artificial intelligence (AI)-driven disruptions, alongside weak discretionary spending and continuing geopolitical uncertainties are expected to keep revenue growth of India's information technology (IT) services sector muted this fiscal year and the next one.
