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Markets likely to make negative start amid weak global cues
Oct-13-2025

Indian equity markets are likely to make negative start on Monday, amid weak global cues following renewed trade tensions between China and US. Traders are likely to adopt wait-and-watch approach ahead of the release of inflation data for September 2025. However, some support may come from foreign institutional investors, who were net buyers of shares worth Rs 459.20 crore on Friday.

Some of the key factors to be watched:

Forex reserves drop below $700 billion: RBI data showed that India's forex reserves fell by $276 million to $699.96 billion during the week ended October 3.

India, UK review defence ties, discuss ways to further deepen cooperation: Minister of State for Defence Sanjay Seth said that India and the UK have reviewed their ongoing defence engagements and discussed ways to further deepen cooperation.

India, Canada trade ministers discuss ways to strengthen economic ties: Commerce and Industry Minister Piyush Goyal held discussions with his Canadian counterpart Maninder Sidhu on ways to strengthen economic ties between the two countries.

Jaishankar meets US ambassador-designate Sergio Gor: External Affairs Minister S Jaishankar held talks with US Ambassador-designate Sergio Gor amid continuing strains in the India-US relations over Washington's imposition of 50 per cent tariffs on Indian exports.

Sugar stocks will be in focus: Trade body AISTA said that India is estimated to have exported 7.75 lakh tonnes of sugar in the marketing season that ended September.

On the global front: The US markets ended in red on Friday, while Asian markets are trading in red on Monday, after President Donald Trump threatened to retaliate against China's expansion of export controls on rare earths. Trump accused China of becoming very hostile and threatened a massive increase in tariffs on Chinese products coming into the U.S.

Back home, Indian equity benchmarks extended their gains for the second consecutive session and ended nearly half a percent higher on Friday, on strong gains in Realty, Telecom and Healthcare shares and foreign fund inflows. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,308.16 crore on Thursday, according to exchange data. Optimism around upcoming quarterly earnings also added to the upbeat mood. Finally, the BSE Sensex rose 328.72 points or 0.40% to 82,500.82 and the CNX Nifty was up by 103.55 points or 0.41% to 25,285.35. 

Some of the important factors in trade:

India on track to become third largest economy by 2028: British Prime Minister Keir Starmer has said that India is on track to become the third largest economy by 2028 and the UK is perfectly placed to be a partner in this journey. 

India's manufacturing sector poised for strong growth, expansion: Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest survey has said that India's manufacturing sector is poised for strong growth and expansion, with 87 per cent of respondents reporting higher or same production levels for the September quarter (Q2FY26). 

Fertiliser stocks in watch: Crisil Ratings in its latest report has said that volume growth of complex fertilisers is seen slowing to 2-4% this fiscal (FY26) after a strong 9% print last fiscal (FY25) because of availability issues with imported fertilisers, ongoing geopolitical disruptions and high-base effect.

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