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Indian equity benchmarks are likely to start Thursday's session in positive territory as investors await the Reserve Bank of India's interest rate decision, scheduled to be announced on Friday from the Monetary Policy Committee meeting that will be underway for the second day. There are expectations of a 25 basis-points rate cut.

Some of the key factors to be watched:

Govt market borrowings for FY26 are well placed: A report by the State Bank of India (SBI) said the government’s market borrowing plans for the financial year 2025-26 (FY26) appear well-placed to support fiscal policy while complementing monetary policy.

India’s fruit and vegetable exports surge 47.3%: The Ministry of Commerce & Industry said India’s exports of fruits and vegetables have witnessed a significant surge of 47.3 per cent in volume between the financial years 2019-20 and 2023-24.

Port & shipping industry stocks will be in focus: The cargo volumes handled by Indian ports year-over-year have been rising, with a growing economy and in line with its exports.

Gold related stocks will be in limelight: The World Gold Council said gold demand in India witnessed a 5 per cent on-year rise at 802.8 tonnes in 2024 supported by reduction in import duty, and purchases related to weddings and festivals.

Investors will keep close eye on Q3 earnings: Investors will be keeping an eye on third quarter numbers from notable names like State Bank of India, Hero MotoCorp, ITC and Britannia Industries, among others.

On the global front: The US markets ended in green on Wednesday as disappointing earnings and mixed economic data counterbalanced easing jitters of a spreading global trade war. Asian markets are trading mostly higher on Thursday tracking gains on Wall Street as investors shrug off a week of trade turmoil and a slew of disappointing U.S. tech earnings.

Back home, in a volatile session, Indian equity benchmarks altered between positive and negative terrains and finally ended lower on Wednesday as investors turned cautious ahead of the RBI's monetary policy decision later this week. Finally, the BSE Sensex fell 312.53 points or 0.40% to 78,271.28, and the CNX Nifty was down by 42.95 points or 0.18% to 23,696.30.

Some of the important factors in today’s trade:

India services sector PMI edged down in January: India's services sector activity expanded at the slowest pace in over two years in January amid softer increases in sales and output. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.3 in December to 56.5 in January, its lowest level since November. 

Sliding rupee remained a concern: Indian rupee made a new low against the US dollar and plunged by 36 paise to 87.43 (provisional) against the US dollar, as global trade war concerns fuelled risk aversion among investors. 

FIIs turned net buyers: Traders got support as exchange data showed Foreign Institutional Investors (FIIs) turned buyers on Tuesday after unabated selling for the past many days. They bought equities worth Rs 809.23 crore.

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