Opening Bell : Benchmarks likely to make cautious start amid mixed global cues
Indian equity markets are likely to make cautious start on Wednesday, amid mixed global cues. Traders are likely to adopt wait-and-watch approach ahead of the September-quarter earnings season. However, some support may come from foreign institutional investors, who were net buyers of shares worth Rs 1,440.66 crore on Tuesday.
Some of the key factors to be watched:
India-US in continuous dialogue for trade pact: Commerce and Industry Minister Piyush Goyal said that India and the US are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities are there to meet the November deadline for concluding the talks.
Commerce Secretary to visit Brussels this week: Commerce and Industry Minister Piyush Goyal said that Commerce Secretary Rajesh Agrawal will visit Brussels this week to meet European Commission Director General for Trade Sabine Weyand to give impetus to the ongoing negotiations on the proposed free trade agreement.
Qatar keen to partner with Indian businesses: Commerce and Industry Minister Piyush Goyal said there is a lot of excitement in Qatar about forging partnerships with Indian businesses, not only for investments in the two countries but also for collaborating on third-country projects.
RBI moots changes in credit risk norms for banks: The Reserve Bank has proposed to replace the incurred-loss-based provisioning framework with an expected credit loss (ECL) based provisioning to further strengthen credit risk management practices and promote greater comparability across financial institutions.
India, Brazil discuss expansion of preferential trade agreement: The report said that India and Brazil have discussed expansion of a preferential trade pact, market access issues and areas of collaboration in pharma and banking sectors.
On the global front: The US markets ended mostly in red on Tuesday, as traders opted to book some profits following recent gains made by markets, which saw the S&P 500 close higher for seven straight sessions. Asian markets are trading mostly in red on Wednesday, following the weak cues from Wall Street overnight.
Back home, Indian equity benchmarks ended marginally in green on Tuesday, helped by a rally in blue-chip bank stocks and buying by domestic institutional investors. Markets started on a positive note, supported by favourable global cues and anticipation surrounding the upcoming earnings season. However, profit-taking at higher levels dragged the barometers from the day's high levels. Finally, the BSE Sensex rose 136.63 points or 0.17% to 81,926.75 and the CNX Nifty was up by 30.65 points or 0.12% to 25,108.30.
Some of the important factors in trade:
Foreign capital outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 313.77 crore on a net basis on Monday, according to exchange data.
Tariff volatility overturns trade: External Affairs Minister S Jaishankar has said that trade calculations are being overturned by tariff volatility globally. His remarks on tariff volatility come amid a downturn in ties between New Delhi and Washington after US President Donald Trump doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duty for India's purchase of Russian crude oil.
World Bank raises India growth forecast to 6.5%: The World Bank has raised India's growth forecast for the current fiscal to 6.5 per cent from 6.3 per cent estimated earlier, and said the country is expected to remain fastest-growing major economy, underpinned by continued strength in consumption growth..
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