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Markets likely to make negative start on Monday
May-11-2026

Indian equity markets are likely to make negative start on Monday as investors may remain cautious after US and Iran rejected peace proposal which sent crude oil prices higher. Additionally, some cautiousness may come from foreign institutional investors, who were net sellers of shares worth Rs 4,110.60 crore on Friday. 

Some of the key factors to be watched:

India, Canada to hold next round of FTA talks in Ottawa in July: The Commerce Ministry said India and Canada will hold the next round of negotiations for the proposed free trade agreement in July in Ottawa. The two sides concluded the second round of talks for the Comprehensive Economic Partnership Agreement (CEPA) on May 8.

Govt working on FTA utilisation plan to maximise benefits for businesses: The report said that with India signing a series of free trade agreements with developed countries, the government is working on an FTA utilisation plan to help maximise benefits from these pacts. 

India got EU market opened for seafood through active talks: Union Commerce and Industry Minister Piyush Goyal has said that India actively negotiated with the European Union to open its market for seafood exports, helping the country overcome challenges arising from steep US tariffs. 

India seeks early resolution of issues related to implementation of EFTA trade pact: The report said that India has called for early resolution of implementation issues related to the trade agreement with the EFTA bloc so that businesses of both sides make full use of the pact. 

Forex reserves drop to $690.69 billion: The RBI said India's forex reserves dropped by $7.79 billion to $690.69 billion during the week ended May 1. In the previous reporting week ended April 24, the overall reserves had declined by $4.82 billion to $698.48 billion.

Global front: US markets closed higher on Friday as stronger-than-expected US employment data reinforced confidence in the economy, while investors continued monitoring developments in the Iran war. Asian markets are trading mostly in green on Monday as investors continued to pile into artificial intelligence-linked trades, brushing aside rising geopolitical tensions in the Middle East. 

Back home, Indian equity benchmarks stayed on the back foot for the second day on Friday as fresh geopolitical tensions in West Asia revived concerns over energy supplies and weighed heavily on investor sentiment. Foreign fund outflows and a weak trend in global markets further added to the bearish trend. Finally, the BSE Sensex fell 516.33 points or 0.66% to 77,328.19 and the CNX Nifty was down by 150.50 points or 0.62% to 24,176.15. 

Some of the important factors in trade:

India’s 6.6% growth impressive feat amid global turmoil: Former NITI Aayog CEO Amitabh Kant has said that despite facing unprecedented global challenges such as active warfare, broken supply chains, and rising protectionism, India's 6.6% GDP growth cements its status as the world's fastest-growing large economy. 

Foreign Secretary Vikram Misri meets UAE's minister: Foreign Secretary Vikram Misri met with the UAE's Minister of State for International Cooperation Reem Al Hashimy in Abu Dhabi on Thursday and discussed bilateral ties as well as the ongoing regional situation and global issues of mutual interest.

Govt extends subsidy scheme for companies flagging merchant ships until FY31: The shipping ministry extended the scheme for providing subsidies to Indian companies flagging merchant ships in India for five years until the financial year 20230-31. 

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