Opening Bell : Benchmarks likely to make cautious start amid mixed global cues
Indian equity markets are likely to make cautious start on Wednesday, tracking mixed global cues. Trading sentiments are likely to remain subdued as U.S. President Donald Trump has threatened India with tariffs as high as 25 percent. Additionally, relentless selling by foreign portfolio investors (FPIs) could further dampen markets sentiments.
Some of the key factors to be watched:
US team to visit India on Aug 25 for next round of talks for trade pact: The report said that the US team will visit India on August 25 for the next round of negotiations for the proposed bilateral trade agreement between the two countries.
EFTA commits $100 billion investment under trade pact with India: The four European nations group EFTA has committed to invest $100 billion under a trade pact with India and these investments are expected to flow into sectors such as infrastructure, manufacturing, and pharma.
Government's focus on reducing ratio of debt to GDP: Minister of State for Finance Pankaj Chaudhary said that, to reduce the interest-to-revenue ratio, the government’s strategy is to ensure a downward trajectory in the debt-to-GDP ratio.
Large states' revenue growth to see uptick at 7-9% this fiscal: Crisil Ratings said that revenue growth of large states is likely to witness a marginal uptick at 7-9 per cent to Rs 40 lakh crore this financial year.
Tyre manufacturing company stocks will be in focus: Automotive Tyre Manufacturers' Association said that the competitiveness of Indian tyre manufacturers in the British market will be strengthened as a result of the removal of import duties under the India-UK free trade agreement.
On the global front: The U.S. markets ended in red on Tuesday, ahead of the Federal Reserve's monetary policy announcement on Wednesday. Asian markets are trading mixed on Wednesday, after the U.S. and China ended two days of 'constructive' talks in Stockholm without any breakthrough.
Back home, Indian equity benchmarks bounced back after three-day fall and ended higher by over half percent on Tuesday, powered by a rally in blue-chip stocks Reliance Industries and Larsen & Toubro. All the sectoral indices ended in the green with Realty, Telecom and Energy up over a percent each. Finally, the BSE Sensex rose 446.93 points or 0.55% to 81,337.95 and the CNX Nifty was up by 140.20 points or 0.57% to 24,821.10.
Some of the important factors in trade:
Digital payments rise 10.7% at end-March 2025: Reserve Bank of India (RBI) data reported that digital payments across the country registered a 10.7 per cent year-on-year rise as on March 2025.
RBI measures to boost MSME credit access: A delegation from industry lobby PHDCCI met RBI Governor Sanjay Malhotra and suggested a set of policy reforms aimed at enhancing credit access, regulatory support, and financial efficiency for India's Micro, Small, and Medium Enterprises (MSMEs).
India-UK CETA transformative opportunity for India’s textiles, leather, footwear industries: Few days after the signing of India-UK Comprehensive Economic and Trade Agreement (CETA), Union Minister of Commerce and Industry, Piyush Goyal has said that the agreement is a transformative opportunity for India’s textiles, leather, and footwear industries.
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