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Indian equity markets are likely to make negative start on Wednesday amid lingering uncertainty over the US-Iran negotiations and fresh military strikes between the two nations. Traders are likely to remain cautious ahead of the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, which is scheduled to begin today, and the release of the final HSBC Composite PMI data later in the day.

Some of the key factors to be watched:

India, UK discuss sticking points delaying free trade pact rollout: Commerce Secretary Rajesh Agarwal said that India and the UK have discussed the ‘sticking points’ that are delaying the implementation of the Comprehensive Economic and Trade Agreement (CETA) between the two countries.

EAM Jaishankar meets South African Deputy President Mashatile: South Africa's Deputy President Shipokosa Paulus Mashatile and External Affairs Minister S Jaishankar have held wide-ranging talks focusing on boosting bilateral ties in trade, investments, infrastructure and digital domain.

Higher petrol, diesel prices threaten to renew inflation pressures: Crisil said that rising petrol and diesel prices are poised to add fresh inflationary pressures to India's economy, with higher transport and manufacturing costs expected to feed through to consumer prices in the coming months.

Venezuelan Acting President to visit India; Energy, trade talks in focus: The report said that Venezuelan Acting President Delcy Rodriguez's five-day visit to India starting on June 3, 2026, is expected to focus heavily on expanding bilateral energy cooperation as New Delhi looks to diversify its crude procurement in view of disruptions in supplies caused by the West Asia crisis.

West Asia conflict poses major challenge for Indian MSMEs in this Fiscal: Crisil report stated that Headwinds stemming from the ongoing conflict in West Asia will hit micro, small and medium enterprises (MSMEs) in India hard this fiscal year, impacting both revenue and profitability, with clusters like Morbi, Firozabad, Surat, Vadodara seen most hit.

Global front: The US markets ended higher on Tuesday, supported by gain in Tech stocks. Asian markets are trading mostly in green on Wednesday, tracking positive cues from Wall Street overnight.

Back home, snapping four-day losing streak, Indian equity benchmarks ended higher on Tuesday amid renewed value buying, gains in information technology stocks and easing crude oil prices. Traders assessed mixed signals over the status of U.S.-Iran peace talks and awaited upcoming RBI rate decision. Finally, the BSE Sensex rose 382.50 points or 0.52% to 74,649.84 and the CNX Nifty was up by 100.95 points or 0.43% to 23,483.55. 

Some of the important factors in trade: 

Free trade agreement between India, Oman comes into force on June 01: Marking a defining milestone in bilateral economic relations, Commerce and Industry Minister Piyush Goyal has said that the free trade agreement between India and Oman came into force on June 01, 2026 after completion of internal processes by both sides. 

Govt meets FY26 fiscal deficit target of 4.4% of GDP: Easing immediate concerns over government finances, the data released by the Controller General of Accounts (CGA) has showed that the government met its fiscal deficit target of 4.4 per cent of gross domestic product (GDP) for FY 2025-26 (FY26). 

Banks sanctions Rs 35,000 crore ECLGS loans to MSMEs & industries hit by West Asia Crisis: Department of Financial Services Joint Secretary Manoj Muttathil Ayyappan has said that banks have sanctioned loans worth more than Rs 35,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 for MSMEs, airlines and other businesses impacted by the ongoing crisis in West Asia. 

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