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Indian equity benchmarks are likely to make a positive start tracking firm global cues. Investors will be eyeing services PMI data to be out later in the day. Also, market participants will keep close eye on the three-day meeting of the Reserve Bank of India's Monetary Policy Committee, which will begin today. There are expectations that the RBI will cut interest rate. However, upside may remain capped amid foreign fund outflows. The Foreign institutional investors (FIIs) continued their selling on third session on June 3 as they sold equities worth Rs 2,853.83 crore.

Some of the key factors to be watched:

WTO chief urges India to support proposal on investment facilitation: World Trade Organization chief Ngozi Okonjo-Iweala has urged India to support the China-led proposal on investment facilitation for development as several developing countries are backing the initiative.

India seeks WTO consultations with US over safeguard measures on auto components: India has sought consultations with the US under the World Trade Organisation's (WTO) safeguard agreement over American tariffs on auto components. This move comes shortly after India reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and aluminium.

Centre working continuously on green energy: Union Minister Nitin Gadkari has described hydrogen gas as the fuel of India's future and said the Centre is continuously working on green energy.

Banking stocks will be in focus: Moody's Ratings said India's domestic economic conditions will continue to be supportive for growth, which will help banks preserve their asset quality and maintain systemwide nonperforming loan (NPL) ratio 2-3 per cent in over next 12 months.

Tourism industry stocks will be in limelight: World Travel and Tourism Council (WTTC) said India is well-placed to become one of the world’s most dynamic tourism economies with its mix of heritage, natural beauty and modern innovation, and projected that international visitor spending in the country in 2025 is expected to reach Rs 3.2 trillion.

On the global front: The US markets ended higher on Tuesday helped by gains in Nvidia and other chipmakers, as investors awaited possible negotiations between the United States and its trading partners for more clarity on Washington's tariff plans. Asian markets are trading mostly in green on Wednesday after data showed the US labor market is holding up despite concerns about risks from President Donald Trump’s tariff war.

Back home, Indian equity benchmarks ended lower on Tuesday, weighed down by a widespread selloff amid renewed foreign fund outflows and growing geopolitical uncertainties. Rising crude oil prices and nervousness ahead of key RBI MPC outcome also weighed on investor sentiment. Finally, the BSE Sensex fell 636.24 points or 0.78% to 80,737.51 and the CNX Nifty was down by 174.10 points or 0.70% to 24,542.50.

Some of the important factors in trade:

FPIs stay net sellers for second session: Foreign portfolio investors (FPIs) remained net sellers of Indian equities on Monday for the second straight session, selling up stocks worth Rs 2,589.47 crore, according to the provisional data from the National Stock Exchange.

Rupee falls against US Dollar: Indian rupee declined against the US dollar, weighed down by a firm American currency and outflow of foreign funds. The local unit remained under pressure tracking negative domestic equity markets amid geopolitical uncertainties.

Trump’s proposed 50% tariff hike likely to hit $5 billion engineering exports: The Engineering Export Promotion Council of India (EEPC India) has said that US President Donald Trump’s proposed 50 per cent tariff on steel and aluminium imports could severely impact India’s engineering goods’ shipments.

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