Markets likely to make cautious start on Monday

Indian equity markets are likely to make a cautious start on Monday as concerns grew that the United States and Iran may not reach an agreement soon to reopen the Strait of Hormuz. However, some support may come amid foreign fund inflows. Foreign institutional investors (FIIs) turned net buyers in Indian equities on August 7, 2026, purchasing a net amount of Rs 480.24 crore after two consecutive sessions of selling. 

Some of the key factors to be watched:

US Senate nod to bill on Russia sanctions could hit Indian exports with 100% tariff: Think tank GTRI said the US Senate's approval of a bill on Russia sanctions could expose Indian exports to additional tariffs of up to 100 per cent if India continues buying Russian crude oil.

Private sector investment moving at steady pace: Economic Affairs Secretary Anuradha Thakur has said that private sector investment is witnessing steady and sustained growth, driven by the government's continued capital expenditure push. 

Households in India, other Asia-Pacific regions highly vulnerable to El Nino-driven price shocks: S&P Global Ratings has said that Asia-Pacific economies, like India, Vietnam, Indonesia and the Philippines, are seeing a surge in prices, with households remaining highly vulnerable to further weather-related supply shocks, including those triggered by the El Nino. 

More exporters leveraging benefits of free trade pacts: Minister of State for Commerce and Industry Jitin Prasada said issuance of certificates of origin, a key document to avail free trade agreement benefits, has more than doubled from 3.6 lakh in 2021-22 to over 7.8 lakh in 2026-27 so far.

India’s forex kitty swells by $10.5 billion to $692.87 billion: The RBI said India’s forex reserves jumped by $10.512 billion to $692.866 billion during the week ended July 31. The overall kitty had jumped by $6.118 billion to $682.354 billion in the previous reporting week. 

Global front: US markets ended higher on Friday amid easing concerns about the outlook for interest rates after the Labor Department released a report unexpectedly showing a modest decrease in U.S. employment in the month of July. Asian markets are trading in green on Monday following the broadly positive cues from Wall Street on Friday.  

Back home, Friday turned out to be lackluster day for the Indian equity markets, with both Sensex and Nifty ending lower, as uncertainty prevailed over a possible agreement between the United Sates and Iran to reopen the Strait of Hormuz and investors awaited U.S. jobs data that could prove pivotal for next month's interest-rate decision by the Federal Reserve. Although both benchmark indices ended in the red, the Sensex witnessed steeper losses than the Nifty.  Finally, the BSE Sensex declined 455.59 points or 0.58% to 78,499.17 and the CNX Nifty was down by 65.35 points or 0.27% to 24,570.65.

Some of the important factors in trade: 

India should simplify land acquisition process for industries to attract more investment: In order to attract more investments, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs to ease the process of land acquisition for setting up industries.

Govt's capital expenditure push encourages private sector investment: Finance Minister Nirmala Sitharaman has said the government's sustained capital expenditure push over the years has encouraged private sector investment, with companies now taking on greater risks to capitalise on India's growth momentum.

India makes no commitment on US ethanol imports for fuel blending under trade talks: The commerce and industry ministry has clarified that no concessions or commitments have been made regarding the import of ethanol from the United States (US) for fuel blending as part of the ongoing India-US trade negotiations.