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Benchmarks likely to make positive start amid strength in rupee
Dec-23-2025

Indian equity markets are likely to make positive start on Tuesday, supported by strength in the rupee and positive global cues. Traders are likely to take some support with the report stating that the India-New Zealand Free Trade Agreement (FTA) will significantly deepen bilateral economic engagement, enhance market access, and promote investment flows.

Some of the key factors to be watched:

India’s core infra sectors grow by 1.8% in November: India's eight key infrastructure sectors grew at a slower pace of 1.8 per cent in November against 5.8 per cent in the same month last year, amid a dip in production of crude oil, natural gas, refinery products, and electricity.

India gives duty-free access to 54.11% of New Zealand exports from day one of FTA: India will give duty-free access to 54.11 per cent of New Zealand exports from day one of the implementation of the free trade agreement, and these goods include sheep meat, wool, coal and several forestry and wood products, a move which is expected to make these items cheaper for Indian consumers.

India at advanced stage of talks on bilateral trade pact with US: Commerce and Industry Minister Piyush Goyal has said that India is at an advanced stage of negotiations for a bilateral trade agreement with the US.

India, Canada to soon start talks for terms of reference for trade pact: Commerce and Industry Minister Piyush Goyal has said that India and Canada are soon to start discussions on the Terms of Reference (ToR) to formally start negotiations for a free trade agreement.

Resilience in economy due to coordinated fiscal monetary polices: A Reserve Bank bulletin said coordinated fiscal, monetary and regulatory policies have helped build resilience in the economy, which is not fully immune to the external sector headwinds.

On the global front: The US markets ended in green on Monday, amid easing concerns about valuations of technology stocks. Asian markets are trading mostly in green on Tuesday, following the positive cues from Wall Street overnight. 

Back home, building on the previous session's rally, Indian equity benchmarks ended higher on Monday as investor sentiment remained positive amid foreign fund inflows and a rally in global markets on expectations of further monetary policy easing by the US Federal Reserve. Finally, the BSE Sensex rose 638.12 points or 0.75% to 85,567.48 and the CNX Nifty was up by 206.00 points or 0.79% to 26,172.40.

Some of the important factors in trade:

India's exports rebound in November on supply-chain shifts, US holiday restocking: The Global Trade Research Initiative (GTRI) has said that supply-chain realignments and inventory restocking ahead of the US holiday season helped India's exports rebound in November. 

India deepens Indo-Pacific engagement with conclusion of FTA with New Zealand: India has marked a major economic and strategic milestone in its engagement with the Indo-Pacific region, with conclusion of a comprehensive, balanced and forward-looking FTA with New Zealand, one of India’s fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047.

RBI's neutral stance to enable actions according to evolving situation: RBI Governor Sanjay Malhotra has said that a neutral monetary policy stance would give flexibility to the central bank to act according to the evolving macroeconomic conditions while voting for a 25 basis points cut in repo rate, along with five other MPC members.

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