Markets likely to make negative start amid weak global cues

Indian equity markets are likely to make a negative start on Monday, tracking weak cues from global markets amid rising oil prices, concerns over a potential US rate hike, and escalating tensions between the US and Iran. Sentiment may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on August 28, 2026, selling equities worth Rs 5,039.80 crore.

Some of the key factors to be watched:

Forex kitty jumps $12.42 billion to all-time high of $729.3 billion: The RBI said that India's forex reserves jumped $12.422 billion to a new all-time high of $729.328 billion during the week ended August 21.

India, Uzbekistan upgrade ties to comprehensive strategic partnership: The report said that India and Uzbekistan have decided to elevate their ties to a comprehensive strategic partnership and set a target of $5 billion in annual trade by 2030 following talks between Prime Minister Narendra Modi and Uzbek President Shavkat Mirziyoyev.

Industrial growth of India falls to 6.7% in July: The Ministry of Statistics and Programme Implementation (MoSPI) in its quick estimates has shown that industrial growth fell to 6.7 percent in the month of July 2026 (Base 2022-23=100) from a revised growth of 8.8 percent in June 2026 amid contraction in mining activity and slowdown in manufacturing growth.

Argentina to ease barriers for Indian pharma sector entry: The commerce ministry said that Argentina has committed to reduce barriers to facilitate entry of Indian pharmaceutical sector in the South American nation. He also said that this is expected to provide greater opportunities for Indian pharmaceutical companies and contribute to improving access to quality and affordable healthcare in Argentina.

India remained resilient amid global uncertainties, protected farmers, households: Finance Minister Nirmala Sitharaman said India has remained resilient amid global uncertainties by continuously monitoring developments abroad while keeping the country's own requirements in focus.

Global front: The US markets ended lower on Friday as chipmakers shares trimmed the previous session’s gains and following Fed Chairman Kevin Warsh's statement signaling a possible rate hike due to persistently high inflation. Asian markets are trading mostly lower on Monday, as investors react to rising oil prices and global bond yields.

Back home, Indian equity benchmarks rebounded on Friday after two days of losses and ended higher, tracking buying in blue-chip IT stocks and a rally in global markets. However, the indices remained volatile through the session as investors awaited comments from the Fed Chair at the Jackson Hole symposium for greater clarity on the US interest-rate outlook and global liquidity conditions. Finally, the BSE Sensex rose 330.92 points or 0.43% to 77,264.51 and the CNX Nifty was up by 84.80 points or 0.35% to 24,175.65.

Some of the important factors in trade: 

S&P retains India’s sovereign rating at ‘BBB’ with stable outlook: S&P Global Ratings has retained India’s sovereign rating at ‘BBB’ with a stable outlook, and said that the country is a dynamic and fast-growing economy supported by policy stability and high infrastructure investment. 

India Ratings revises FY27 bank credit growth forecast to 15%: Domestic credit rating agency India Ratings has revised its FY27 estimate for bank credit growth to 15 per cent from the earlier projection of 13 per cent, but flagged an impact on profitability as lenders set aside money for transitioning to the expected credit loss system of provisioning. 

Aggregate sales of listed private non-financial companies grow 19.4% in Q1: India’s private corporate sector entered FY27 on a stronger footing, as the Reserve Bank of India (RBI) in its latest data report has shown a marked acceleration in sales growth during Q1 of 2026-27. Aggregate sales of listed private non-financial companies grew 19.4 per cent y-o-y in Q1:2026-27, up sharply from 13.9 per cent in the previous quarter.