Indian equity markets are likely to make positive start on Tuesday, amid positive global cues. Traders are likely to adopt a wait-and-watch approach ahead of key U.S. inflation readings due this week, which could influence the Federal Reserve's rate trajectory. However, some volatility may come as Foreign institutional investors net sold shares worth Rs 2,170.35 crore on Monday.

Some of the key factors to be watched:

Full benefits of GST rate cuts must be passed on to consumers: Union Minister Piyush Goyal has asked the industry to pass on the full benefit of GST rate cuts to consumers, thereby increasing the demand of domestic products and strengthen the foundation of India's economy.

India, Israel sign bilateral investment agreement: India and Israel have signed a Bilateral Investment Agreement (Agreement), on September 8, 2025. The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration.

India, EU officials commence next round of trade pact talks: A private report said that India and the European Union (EU) has started the next round of negotiations for the proposed free trade agreement (FTA).

IESA hails GST 2.0, terms it a step forward to meet India's energy storage needs: Industry body India Energy Storage Alliance (IESA) has hailed the new tax regime under GST 2.0, saying it marks a significant step forward in meeting India’s future energy storage requirements.

Govt revises export policy of animal by-products in line with EU norms: The government has revised the policy for the export of certain animal by-products in line with specific EU (European Union) regulations. These products include dog or cat food put for retail sale, compounded animal feed, and concentrates for compound animal feed.

On the global front: The US markets ended in green on Monday, as traders were optimistic about the outlook for interest rates following weaker-than-expected U.S. employment data.  Asian markets are trading mostly in green on Tuesday, following the positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks erased most of their gains but managed to end marginally in green on Monday, powered by buying in Auto, Consumer Discretionary and Telecom shares and a firm trend in global markets. However, sharp profit-taking in the final hour and continued selling by foreign investors trimmed the gains. Finally, the BSE Sensex rose 76.54 points or 0.09% to 80,787.30 and the CNX Nifty was up by 32.15 points or 0.13% to 24,773.15.

Some of the important factors in trade: 

India’s nominal GDP growth likely to miss FY26 target on soft inflation: Chief Economic Adviser V Anantha Nageswaran has said that there may be a shortfall in nominal GDP growth compared to the Budget estimate of 10.1% for the current financial year (FY26), given the expectation of benign inflation. 

Govt exploring alternative export markets to shield farmers from US tariff threats: D K Yadava, Deputy Director General (Crop Science) at the Indian Council of Agricultural Research (ICAR), said the government is actively exploring alternative export destinations and import substitution strategies to protect farmers from the impact of US tariffs. 

Govt keeping good watch on rupee, several currencies declined against US dollar: Finance Minister Nirmala Sitharaman has said that the government is keeping a good watch on exchange rates, stressing that besides rupee several other currencies have depreciated against the US dollar.