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Indian equity markets are likely to make negative start on Wednesday amid mixed cues from global markets. Traders are likely to remain cautious amid U.S. President Donald Trump's latest tariff threats and await for Reserve Bank of India's policy announcement. Additionally, continued selling by foreign portfolio investors (FPIs) could further dampen markets sentiments. 

Some of the key factors to be watched:

US did not accept India's request for consultations at WTO over import tariffs: Minister of State for Commerce and Industry Jitin Prasada has said that the US did not accept India's request for consultations under an agreement of the World Trade Organisation (WTO) concerning American tariffs on steel, aluminium, and related derivative products.

India, Russia reaffirm commitment to enhance defence cooperation: India and Russia have reaffirmed their commitment to boost bilateral defence cooperation during a meeting between Indian Ambassador Vinay Kumar and Russia’s Deputy Defence Minister Colonel-General Alexander Fomin.

India actively discussing trade pact with US: Minister of State for Commerce and Industry Jitin Prasada said that India is actively involved in the discussions with the US on the proposed bilateral trade agreement (BTA) with an aim to expand trade and investment.

Business confidence index rises to 149.4 in April-June: Business Expectations Survey of National Council of Applied Economic Research (NCAER) report showed that the Business Confidence Index (BCI) rose sharply to 149.4 in the April-June period from 139.3 in the last quarter of 2024-25.

Defence stocks will be in focus: Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh has cleared Rs 67,000 crore worth of defence projects including procurement of military hardware such as long endurance drones and mountain radars, and a maintenance contract for Russian-origin S-400 missile systems that played a key role during Operation Sindoor.

On the global front: The U.S. markets ended in red on Tuesday as investors were cautious amid weaker-than-expected US economic data. Asian markets are trading mixed on Wednesday, amid ongoing trade concerns following President Donald Trump's latest comments on tariffs.

Back home, Indian equity benchmarks ended lower on Tuesday following selling in Oil & Gas, Energy and FMCG shares ahead of the Reserve Bank's monetary policy announcement on August 6. Investor sentiments were further dampened after US President Donald Trump threatened to impose higher tariffs on India over its purchases of Russian oil. Finally, the BSE Sensex fell 308.47 points or 0.38% to 80,710.25 and the CNX Nifty was down by 73.20 points or 0.30% to 24,649.55. 

Some of the important factors in trade: 

FIIs outflows continue to weigh on market confidence: Foreign Institutional Investors (FIIs) remained net sellers on Monday, offloading equities worth Rs 2,566.51 crore, according to exchange data. 

25% import duty by Trump could lead to 30% decline in India's exports to America this fiscal: The Global Trade Research Initiative (GTRI) has said that the additional 25 per cent import duty announced by US President Donald Trump on Indian goods could lead to a 30 per cent decline at $60.6 billion in India's exports to America this fiscal (FY26) from $86.5 billion in FY25. 

India services growth hits 11-month high: The Indian services sector growth touched an 11 month high in July, supported by a pickup in new exports orders and sharp rise in overall sales. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 60.5 in July, little-changed from 60.4 in June.

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