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Markets likely to make cautious start amid geopolitical uncertainty
Aug-25-2026

Indian equity markets are likely to make a cautious start on Tuesday tracking weakness in global markets, as investors may remain cautious over the escalating US-Iran war in the Middle East. However, some support may come from Foreign Institutional Investors (FIIs), who turned net buyers on August 24, 2026, purchasing equities worth Rs 1,181.66 crore.

Some of the key factors to be watched: 

India, Mauritius strengthen public service cooperation: India and Mauritius have discussed ways to further strengthen cooperation in public service, training and capacity building, with a focus on sustained institutional engagement and exchange of expertise between the two countries. 

India, Cambodia complete BIT talks: The commerce ministry said India and Cambodia have completed negotiations for a bilateral investment treaty (BIT) and have agreed to sign it at the earliest. They also discussed ways to increase cooperation in sectors such as agriculture, dyes and pigments, banking and insurance sectors with a view to boosting economic ties. 

FM to leave for 8-day official trip to Canada, US; focus on deepening bilateral ties: Finance Minister Nirmala Sitharaman will embark on an official visit to Canada and the US from August 25 to September 2 to hold talks on bilateral economic and financial cooperation, investment opportunities and global economic priorities, besides participating in the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting.  

India’s chemicals sector targets $1 trillion by 2040: Union Chemicals and Fertilizers Minister J P Nadda has emphasised the need to increase the size of the chemicals sector to $1 trillion by 2040 and said the government is focused on creating an ecosystem to boost investments for increasing domestic manufacturing capabilities.  

Govt lifts export ban on wheat and its products: The government has lifted the export ban on wheat and its products with immediate effect, a move which is expected to ease the availability of the commodity in the international market. The Russia-Ukraine war has affected the global wheat supply chain. 

Global front: U.S. markets settled mostly in the red on Monday as investors weighed fresh U.S. economic pressure on Iran and braced for a week that includes Nvidia earnings and a closely watched inflation report. Asian markets are trading mostly in red on Tuesday following the weak cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended lower on Monday as persistent geopolitical tensions and elevated crude oil prices hampered risk appetite. Markets remained cautious ahead of fresh US sanctions, with Washington promising an 'economic D-Day' against Iran and its trading partners, while Tehran threatened to halt Gulf oil exports in response, keeping investors wary of further escalation. Finally, the BSE Sensex fell 171.72 points or 0.22% to 77,369.11 and the CNX Nifty was down by 32.95 points or 0.14% to 24,219.05. 

Some of the important factors in trade: 

India, Finland eye deeper business, technology ties in circular economy forum: With an aim of strengthening bilateral trade, India and Finland are eyeing to deepen business and technology partnerships in the circular economy, as companies from both countries explored opportunities for resource-efficient and sustainable growth at the India Circular Economy Forum (ICEF) 2026.

India, Brazil sign MoU to deepen bilateral cooperation in telecommunications, ICTs: India and Brazil have signed Memorandum of Understanding (MoU) to deepen bilateral cooperation in telecommunications and Information and Communication Technologies (ICTs). 

Foreign trade policy changes to boost rupee internationalisation, add flexibility for exporters: The Confederation of Indian Industry (CII) said the amendment in certain provisions of the Foreign Trade Policy to make it easier for exporters to invoice overseas sales and receive payments in Indian rupees will promote rupee internationalisation in trade settlement while providing exporters greater flexibility and certainty.

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