Indian equity markets are likely to make cautious start on Monday, as investors assess the ongoing US-Iran talks. Sentiments may remain subdued amid lingering global concerns surrounding the AI trade, with investors also awaiting the release of key domestic inflation data later this week. During the special Diwali trading session on Sunday, markets ended marginally lower as investors booked profits following a seven-day winning streak.
Some of the key factors to be watched:
India's forex reserves drop by $2.69 billion to $717 billion: The RBI said that India's forex reserves dropped by $2.691 billion to $717.06 billion during the week ended October 30.
India, Myanmar conduct maiden tri-services exercise: India and Myanmar carried out their maiden bilateral tri-services exercise - Rahat Mitra - with an aim to foster mutual trust and enhance coordination between their defence forces. The two-day humanitarian assistance and disaster relief exercise concluded in Chennai.
States' capital outlay to accelerate to 10-12% on Centre support in FY27, urban infra to lead: Crisil Ratings report said that states' capital expenditure is expected to increase 10-12 per cent to about Rs 8.5 lakh crore in FY27, driven by higher central assistance and improved fiscal flexibility.
NBFC credit to gold jewellery, consumer durables grows over 50% in September: The Reserve Bank said Non-banking finance companies' credit to gold jewellery and consumer durables witnessed a sharp growth of over 50 per cent in September.
India, EU conclude multi-billion Euro global innovation programme: India and the European Union have concluded negotiations on New Delhi’s association with a Euro 93.5 billion flagship research and innovation programme, paving the way for expanded collaboration under their broader strategic partnership.
On the global front: The US markets ended mostly higher on Friday, driven by bargain hunting following the sharp sell-off during Thursday’s trading session. Traders took support from the Labor Department report, which showed that employment in the U.S. increased by far more than anticipated in October. Asian markets were trading higher on Monday, following the mixed cues from Wall Street on Friday.
Back home, Indian equity benchmarks registered their seventh day of rally on Friday, defying a global market rout, with the Sensex climbing 1,718 points and the Nifty regaining the 25,000 level, amid strong foreign institutional investors (FIIs) buying during the festive season. FIIs remained net buyers in Indian equities for the fifth straight session on Thursday, purchasing shares worth Rs 14,974.68 crore. Strong corporate earnings and easing crude oil prices also boosted optimism among investors. However, benchmark indices ended Sunday’s special Muhurat Trading session in red, with losses in banking and IT stocks weighing on market sentiment at the start of Samvat 2083. Finally, the BSE Sensex fell 28.62 points or 0.04% to 80,999.40 and the CNX Nifty was down by 43.95 points or 0.18% to 24,986.40.
Some of the important factors in trade:
Trump’s midterm setback may speed up India-US trade deal: Global Trade Research Initiative (GTRI) founder Ajay Srivastava has said US President Donald Trump’s political setback in the November 2026 midterm elections could accelerate India-US trade negotiations, with an agreement potentially concluded within two months.
Centre strengthens states' fiscal position through advance monthly tax devolution transfer: In a move to strengthen the availability of funds with State Governments ahead of the festive season, the union government has released regular instalment of tax devolution to State Governments amounting to Rs 1,09,019 crore on November 5, 2026.
Govt clears 12 electronics component projects worth Rs 7,500 crore: IT Secretary S Krishnan said the government has approved a new tranche of 12 applications, worth over Rs 7,500 crore, under the Electronics Components Manufacturing Scheme (ECMS). The latest round of approvals also covers projects related to materials and capital goods, widening the scheme's reach across the electronics supply chain.