HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets likely to open lower amid uncertainty over reopening of Strait of Hormuz
Sep-28-2026

Indian equity markets are likely to make a negative start on Monday, amid continued uncertainty over the prospects of an end to the U.S.-Iran conflict in West Asia, after U.S. President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz. Traders are likely to adopt a wait-and-watch approach ahead of the release of India's Index of Industrial Production (IIP) data for August later in the day.  

Some of the key factors to be watched:

India's forex reserves fall $14.89 billion to $766 billion: The Reserve Bank of India (RBI) data said that India's forex reserves dropped by $14.88 billion to $765.90 billion during the week ended September 18 due to a fall in foreign currency assets.

India can achieve over 10% economic growth: Union Finance Minister Nirmala Sitharaman has expressed confidence that India could achieve economic growth of more than 10 per cent, stressing the need for greater adoption of technology and innovation, while cautioning against excessive scepticism about the country's prospects.

India, Canada preparing to take ties to 'higher level': External Affairs Minister S Jaishankar said that India and Canada are preparing to take their relationship 'to a higher level' after holding a 'productive discussion' with his Canadian counterpart Anita Anand on the sidelines of the UN General Assembly (UNGA).

India's financial, external sectors continue to draw strength from resilient domestic economy: RBI Bulletin said that India's financial and external sectors continue to draw strength from a resilient domestic economy, though escalating geopolitical tensions and weather-related uncertainties remain key downside risks.

FDI rises 6% to $19.81 billion in April-June: Department for Promotion of Industry and Internal Trade (DPIIT) data showed that foreign direct investment (FDI) in India rose 6 per cent to $19.81 billion in April-June this fiscal year, although inflows from the US fell by over 76 per cent.

Global front: The US markets ended higher on Friday as crude oil prices pulled back sharply after surging over the previous two sessions. Asian markets are trading mostly in red on Monday, after U.S. President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz and other demands, and reportedly told aides he expects U.S. bombing to resume after midterm elections.

Back home, Indian equity benchmarks ended in green on Friday, as a sell-off in government debt eased and oil prices retreated from recent highs following reports that Iran has submitted a proposal to the United States to end their war and reopen the Strait of Hormuz within seven days.  Finally, the BSE Sensex rose 315.20 points or 0.43% to 73,895.74 and the CNX Nifty was up by 77.40 points or 0.34% to 23,140.50.

Some of the important factors in trade: 

India records highest-ever annual FDI inflow of $94.53 billion in FY26: Commerce and industry Minister Piyush Goyal has said that India recorded its highest-ever annual Foreign Direct Investments (FDI) inflow of $94.53 billion in the financial year 2025-26 (FY26). Cumulative FDI inflows from FY15 to FY26 reached $843 billion.

India’s new FTAs aim to boost investor confidence, offer tariff predictability: Expressing optimism over India’s growth prospects, Commerce Secretary Rajesh Agarwal has said that the new free trade agreements (FTAs) finalised by India in the last 5-6 years have been designed to provide comfort to long-term investors looking to invest in global supply chains in India. 

Rupee unlikely to remain under continuous pressure, India must build economic resilience: CEA V Anantha Nageswaran said the rupee is unlikely to remain under continuous pressure in the coming years and stressed that India's objective should be to build economic resilience rather than pursue self-reliance in isolation. 

  RELATED NEWS >>