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Benchmarks likely to make cautious start amid foreign fund outflows
Oct-06-2026

Indian equity markets are likely to make a cautious start on Tuesday, ahead of the Reserve Bank of India's monetary policy announcement due this week. Sentiments may remain subdued as foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 4,699.14 crore on Monday. Traders are likely to adopt wait-and-watch approach ahead of the HSBC Composite PMI Final data, to be out later in the day.   

Some of the key factors to be watched: 

India-US trade talks reach 'plateau' with limited room for further concessions: Finance Minister Nirmala Sitharaman said negotiations for the India-US trade agreement are still underway, but both sides appear to have reached a ‘plateau’, with limited room for further concessions from either side.

FinMin to review financial inclusion schemes with banks: The finance ministry has called a meeting of heads of banks on October 6 to review the progress of various financial inclusion schemes, including flagship Pradhan Mantri Jan Dhan Yojana and Jan Suraksha. The meeting is scheduled to be chaired by Financial Services Secretary Sanjay Lohiya.

Commerce Secretary to visit Canada for India-Canada CEPA talks: The report said Commerce Secretary Rajesh Agarwal is expected to visit Canada this week to give an impetus to the ongoing negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) between the two countries.

India, Switzerland sign migration pact, expand trade, investment and defence ties: India and Switzerland have signed a migration and mobility partnership pact, decided to expand Swiss market access for Indian exports and agreed to further deepen cooperation in nuclear energy and defence domains following talks between Prime Minister Narendra Modi and Swiss President Guy Parmelin.

Telecom minister sets target to bring 100 crore subscribers on 5G network by 2030: Union telecom minister Jyotiraditya Scindia said India should have around 100 crore mobile subscribers on the 5G network by 2030, up from 50 crore at present.

Global front: the U.S. markets ended higher on Monday lifted by Nvidia and Microsoft, as investors focused on a dip in oil prices and looked ahead to quarterly earnings reports. Asian markets are trading mostly in green on Tuesday following the broadly positive cues from Wall Street overnight.

Back home, Indian equity benchmarks witnessed a strong recovery on Monday, taking a breather from the recent corrective trend and gaining over half a percent, as softer-than-expected US jobs data reduced expectations of aggressive monetary tightening by the US Federal Reserve, supporting risk appetite across emerging markets. Finally, the BSE Sensex rose 472.77 points or 0.66% to 72,382.47 and the CNX Nifty was up by 133.80 points or 0.60% to 22,555.75.  

Some of the important factors in trade:

Indian economy seen growing 7.3% in Q2FY27: The Finance Ministry, in its September edition of the Monthly Economic Review, said the Indian economy is estimated to have grown by 7.3 per cent in Q2FY27, though at a slower pace than the 7.8 per cent growth recorded in the June quarter. 

India’s private investment demonstrating clear signs of strong revival despite global challenges: Department of Economic Affairs (DEA) Secretary Anuradha Thakur has said that private investment in India is demonstrating clear signs of a strong revival despite global economic uncertainties, with capital formation in Q1FY27 growing at its fastest pace in more than three years.

Global uncertainty now a standing condition; policies should be designed to build resilience: Finance Minister Nirmala Sitharaman said global uncertainty is now a standing condition and there is a need to design policies which build resilience, and called upon nations to have an open and predictable economic relationship. 
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