IGI Logo

Indian equity markets are likely to make cautious start on Wednesday amid ongoing global tariff uncertainties. Sentiments may remain subdued amid continued outflows by foreign institutional investors (FIIs), as FIIs net sold equities worth nearly Rs 3,000 crore on Tuesday. 

Some of the key factors to be watched:

India’s core sectors' growth accelerates to 4-month high of 3.7% in December: The government data showed that India’s eight key infrastructure sectors registered a four-month high growth rate of 3.7 per cent in December last year, driven by a jump in the output of fertiliser and cement.

EU on cusp of historic trade deal with India: European Commission President Ursula von der Leyen said that India and the European Union are on the cusp of a ‘historic trade agreement’ that would create a market comprising two billion people accounting for almost a quarter of the global GDP.

India among Russia's top foreign trade partners: Russian Prime Minister Mikhail Mishustin said that India was among Russia's top foreign trade partners as Moscow redirected its energy flows to friendly countries.

Corporates to register 6% revenue rise in FY27: Fitch Ratings has said the aggregate revenue for its rated corporates in India will rise by 6 per cent in FY27 on steady GDP growth and an improved consumer-spending outlook, following a comprehensive reduction in GST rates.

India should increase use of steel scrap for sustainable growth: Senior government official said that India needs to significantly increase the use of steel scrap in its production processes to support sustainable growth, reduce emissions and meet future capacity targets. 

On the global front: The US markets ended in red on Tuesday after the S&P 500 posted its steepest loss since October overnight on concerns about the row over Greenland. Asian markets are trading mostly in red on Wednesday amid weak cues from Wall Street overnight.

Back home, extending previous day's decline, Indian equity benchmarks ended sharply lower on Tuesday due to heavy selling pressure in market heavyweights Eternal, Bajaj Finance and Sun Pharma amid escalating geopolitical tensions. Besides, tepid corporate earnings and persistent foreign fund outflows dented investors' sentiment. Finally, the BSE Sensex fell 1065.71 points or 1.28% to 82,180.47 and the CNX Nifty was down by 353.00 points or 1.38% to 25,232.50.   

Some of the important factors in trade:

IMF revises India’s GDP growth upward to 7.3% for FY26: The International Monetary Fund (IMF) has increased India's Gross domestic product (GDP) growth forecast for FY26 by 0.7 percentage point to 7.3 percent from its October projection. 

India to become 'upper-middle income' country in next 4 years: SBI Research report has said India is set to touch $4,000 per capita income level, transitioning to 'upper-middle income' country, in next four years to 2030. 

India and the European Union to meet next week: India and the European Union are set to announce the conclusion of a free trade agreement, firming up of a defence partnership pact and a framework for mobility of Indian professionals at the summit talks next week.