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Benchmarks likely to make positive start on Tuesday
Jan-06-2026

Indian equity markets are likely to make positive start on Tuesday tracking positive cues from Asian peers. Further, investors may take support ahead of German Chancellor’s two-day visit to India which is expected to focus on shoring up bilateral cooperation in a range of areas. However, traders may remain cautious amid US President’s fresh tariff threats to India.

Some of the key factors to be watched:

Crude oil prices to soften in 2026: SBI Research report said that the crude oil prices are expected to soften significantly in 2026, and they could touch $50/barrel by June 2026.

Further US tariff hike will badly hit Indian exports: Apex exporters' body Federation of Indian Export Organisations (FIEO) has said that beyond the existing 50 percent tariff, a further hike by the US, will badly hit Indian exports, particularly in traditional sectors of exports.

RBI Governor urges NBFCs on Asset Quality: Reserve Bank of India (RBI) Governor Sanjay Malhotra has underlined the need for sound underwriting standards and close monitoring of asset quality at a meeting with senior officials of select non-banking financial Companies (NBFCs).

Government removes import restrictions on Met Coke: The government has removed import restrictions on low ash metallurgical coke, having ash content below 18 per cent.

Highway sector stocks will be in focus: The rating agency India Ratings and Research (Ind-Ra) has said that India's highway sector is facing challenges, with muted central road award activity for the past two years, leading to increased competition and persistent project execution issues.

On the global front: The US markets ended in green on Monday as investors looked past the report released by the Institute for Supply Management which showed its reading on U.S. manufacturing activity unexpectedly decreased in the month of December. Asian markets are trading in green on Tuesday, tracking positive cues from Wall Street overnight.

Back home, Indian equity benchmarks ended lower on Monday, dragged by IT, Oil & Gas and TECK stocks amid fresh warning from the US to further raise tariffs against India. However, losses remain capped as some support came with the exchange data showing that foreign institutional investors turned net buyers, picking up equities worth Rs 289.80 crore on Friday. Finally, the BSE Sensex fell 322.39 points or 0.38% to 85,439.62 and the CNX Nifty was down by 78.25 points or 0.30% to 26,250.30. 

Some of the important factors in trade:

India unlikely to face any material economic or energy impact due to US-Venezuela conflict: Amid recent U.S.-Venezuela tensions, the think tank - Global Trade Research Initiative (GTRI) has said that India is unlikely to face any material economic or energy impact due to the US-Venezuela conflict.

India-EU trade talks to gain momentum with Goyal visit in Brussels: To accelerate the process, Commerce and Industry Minister Piyush Goyal is all set to visit Brussels this week for talks with his EU counterpart on the proposed free trade agreement (FTA), which has entered its final negotiation phase. 

RBI data shows growth in bank credit to industry in November 2025: The Reserve Bank India (RBI) in its latest data has showed that bank credit to industry increased at a faster rate of 9.6 percent in November 2025 as against 8.3 percent in the same month of the preceding year.

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