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Indian equity markets are likely to make a negative start on Wednesday, tracking weak global cues amid escalating tensions between Israel and Iran. Sentiment may remain cautious as traders adjust to the revised expiry day for Nifty and Sensex derivatives. Additionally, traders are likely to adopt wait-and-watch approach ahead of the US Federal Reserve’s interest rate decision.

Some of the key factors to be watched:

India's exports show steady growth from 2010 to 2023: A report said that India's export trajectory from 2010 to 2023 has shown a consistent and steady upward trend, reflecting the resilience and dynamism of its trade sector.

India to lead global oil demand growth: International Energy Agency (IEA) said that India, the world's third-largest oil-consuming and importing nation, will lead global oil demand growth by a large margin, adding a steep 1 million barrels per day by 2030 on the back of stellar economic expansion.

India needs to try become indispensable like China: Chief Economic Advisor (CEA) to the Indian government, V Anantha Nageswaran, said that the country needs to prioritise areas like manufacturing, education, and employment generation to become a developed nation by 2047 and become indispensable like China.

Cement stocks will be in focus: Rating agency India Ratings & Research said that the cement demand, which grew 7 per cent year-on-year in April this year, may be impacted by the early onset of monsoon.

Gems and Jewellery stocks will be in limelight: Gems and Jewellery Export Promotion Council (GJEPC) data showed that the overall gems and jewellery exports declined 15.81 percent to $2,263.42 million (Rs 19,260.81 crore) in May compared to the same period of the previous year following tariff announcement by the US.

On the global front: The U.S. markets ended in red on Tuesday, weighed down by renewed concerns over escalating tensions between Israel and Iran. Asian markets are trading mixed on Wednesday, as investors await the Federal Reserve’s interest rate decision.

Back home, Indian equity benchmarks ended lower on Tuesday amid profit-booking after a sharp rally in the previous session as investors turned cautious in view of the ongoing conflict between Israel and Iran. Finally, the BSE Sensex fell 212.85 points or 0.26% to 81,583.30 and the CNX Nifty was down by 93.10 points or 0.37% to 24,853.40.

Some of the important factors in trade:

India’s trade deficit narrows to $21.88 billion in May: According to data from the Ministry of Commerce and Industry, India’s trade deficit narrowed to $21.88 billion in May from $26.43 billion in April. The decrease came as imports fell by 1.7% year on year. 

India’s unemployment rate rises to 5.6% in May: The Ministry of Statistics & Programme Implementation's Periodic Labour Force Survey (PLFS) - Monthly Bulletin has showed that India’s unemployment rate for the month of May rose to 5.6% against 5.1% in April this year. During the same period, the unemployment rate (UR) among females has increased to 5.8% compared to the male UR of 5.6% at the country level. 

India's merchandise exports to US rise by 16.93% to $8.83 billion in May: The commerce ministry in its latest data has showed that India's merchandise exports to the US rose by 16.93 per cent to $8.83 billion in May 2025, while imports dipped by 5.76 per cent to $3.62 billion during the month.

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