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Indian equity markets are likely to make a gap-up opening on Wednesday, driven by positive global cues following a ceasefire agreement between Israel and Iran, effectively ending the conflict. However, upside may be limited due to foreign fund outflows by foreign institutional investors (FIIs).

Some of the key factors to be watched:

Finance Minister says trade agreements with US, EU to be concluded soon: Finance Minister Nirmala Sitharaman said that negotiations for the proposed free trade agreements with the US and European Union (EU) are progressing at a fast pace and would be concluded soon.

Modi, Mauritian counterpart reaffirm commitment to deepen strategic partnership: Prime Minister Narendra Modi spoke with his Mauritian counterpart, Navinchandra Ramgoolam, as the leaders stressed the unique and special ties between India and Mauritius and reaffirmed their commitment to further deepen the Enhanced Strategic Partnership between the two nations.

India, UK to sign trade pact by July end: A private report said that the process of legal scrubbing of the India-UK free trade agreement (FTA) text is progressing at a faster pace, and the pact is expected to be signed by the end of July.

India imposes anti-dumping duty on six Chinese products: India has imposed anti-dumping duty on six Chinese products so far this month to guard domestic players from unfairly priced imports from the neighbouring country.

Aviation stocks will be in limelight: Directorate General of Civil Aviation (DGCA) report showed that India's domestic air passenger traffic increased 1.89 per cent to 140.56 lakh in May compared to that of the same month last year.

On the global front: The U.S. markets ended in green on Tuesday after President Donald Trump announced a ceasefire between Israel and Iran. Asian markets are trading mostly higher on Wednesday, tracking broadly positive cues from Wall Street overnight.

Back home, Indian equity benchmarks gave up most of their intra-day gains and ended marginally higher on Tuesday due to the emergence of profit-taking as investors turned cautious amid reports of a ceasefire violation between Iran and Israel. Finally, the BSE Sensex rose 158.32 points or 0.19% to 82,055.11 and the CNX Nifty was up by 72.45 points or 0.29% to 25,044.35.  

Some of the important factors in trade:

FIIs turn net sellers: Foreign Institutional Investors (FIIs) were net sellers in Indian equities after a day of their strong buying. FPIs sold Rs 1,874 crore on June 23, 2025 in the cash segment of the market, as per provisional data published on the exchange.  

India's outward FDI falls 8.45% in May: The Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 8.45% to $2,830.35 million in May 2025, from $3,091.56 million in May 2024. On the sequentially basis, the fall was steeper, from $5,981.86 million in April 2025.

Israel-Iran conflict may impact India’s exports in Gulf region for short-term: Amidst ongoing Israel-Iran conflict, the Federation of Indian Export Organisations (FIEO) has indicated that the conflict could impact demand and logistics in the short term, especially in the Gulf region which serves as a crucial hub for Indian exports.

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