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Indian equity markets are likely to make negative start on Wednesday, amid weak global cues. Traders are likely to remain cautious due to the persistent uncertainty surrounding an India-U.S. trade deal.  Additionally, some cautiousness may come from foreign portfolio investors, who recorded net sales of equities worth Rs 3,760.08 crore on Tuesday.

Some of the key factors to be watched:

India, EU to intensify efforts for early conclusion of FTA talks: The commerce ministry said that India and the EU have agreed to intensify efforts for early conclusion of negotiations on the proposed free trade agreement (FTA).

Govt mitigating impact of US tariffs on Indian exports: The government said that it is working to mitigate the impact of the US tariffs on the country's exports through a multi-pronged strategy including intensive engagement with America for a mutually beneficial trade pact.

ADB revises up India’s 2025 GDP forecast: The Asian Development Bank (ADB) in its latest report has said that India’s 2025 growth projection is upgraded by 0.7 percentage points to 7.2%, driven primarily by robust domestic consumption supported by recent tax cuts.

India aims for 6G patent leadership: Union Minister Jyotiraditya Scindia said that India is progressing rapidly with confidence to become a major force in shaping global 6G patents and standards.

Fertiliser stocks will be in focus: The Fertilizer Association of India (FAI) said that India's fertiliser imports are estimated to jump 41 per cent to 22.3 million tonnes in the 2025-26 fiscal year due to a surge in domestic demand following good monsoon rains.

On the global front: The US markets ended mostly in red on Tuesday, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement. Asian markets are trading mostly in red on Wednesday, as traders await November consumer price index (CPI) data from China.

Back home, Indian equity benchmarks closed lower for the second straight day on Tuesday, as investors booked profit ahead of the US Federal Reserve's policy decision. Persistent foreign fund outflows and weak global cues weighed on the investors' sentiment. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 655.59 crore on Monday, according to exchange data. Finally, the BSE Sensex fell 436.41 points or 0.51% to 84,666.28 and the CNX Nifty was down by 120.90 points or 0.47% to 25,839.65.

Some of the important factors in trade:

Agri growth estimated to be lower at 4% in FY26: Ramesh Chand, member of government think tank Niti Aayog, said that India's agriculture sector growth is estimated to be lower at 4 per cent in the 2025-26 financial year compared to the rate of 4.6 per cent recorded in the previous fiscal.

PSBs write off Rs 6.15 lakh crore loans in five and a half years: Minister of State for Finance Pankaj Chaudhary has said that public sector banks (PSBs) have written off loans worth Rs 6.15 lakh crore during the last five financial years and the current financial year till September 30, 2025 (provisional data). 

India, Chile discuss progress of trade pact talks: India and South American country Chile have reviewed the progress of a proposed trade pact between the two countries. The two countries on December 5, 2025 concluded the fourth round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA).

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