IGI Logo

Indian equity benchmarks are likely to open in green on Wednesday, driven by strong global cues and continued foreign fund inflows. However, there may be some cautiousness amid global uncertainties, including potential trade disruptions and geopolitical tensions.

Some of the key factors to be watched:

India-US to expand market access, cut duties & barriers: India and the US would focus on increasing market access, reducing import duty and non-tariff barriers, and enhancing supply chain integration in the proposed bilateral trade agreement.

Lok Sabha passes Finance Bill 2025: Lok Sabha has passed the Finance Bill 2025, along with 35 government amendments, including one that abolishes a 6 per cent digital tax on online advertisements.

Budget aims to do reforms to build Viksit Bharat by 2047: Finance Minister Nirmala Sitharaman underscored the Union government’s commitment to providing tax certainty and streamlining business regulations as part of the broader vision to build a Viksit Bharat by 2047.

S&P cuts India’s FY26 GDP growth forecast to 6.5%: S&P Global Ratings cut India’s GDP growth projections to 6.5 per cent for the next fiscal as it expects that economies in the APAC region will feel the strain of rising US tariffs and pushback on globalisation.

Defence production hit Rs 1.27 lakh crore in FY 2023-24: the Ministry of Defence said India’s defence production has reached a record Rs 1.27 lakh crore in FY 2023-24. According to the ministry, the defence exports hit a record Rs 21,083 crore in FY 2023-24, expanding 30 times in a decade, with exports to 100+ countries.

On the global front: The US markets ended in green on Tuesday, as investors reacted to data showing a dip in consumer confidence for the fourth consecutive month and President Trump's softer tariff plan. Most of the Asian markets are trading in green after the United States announced agreements with Ukraine and Russia to ensure safe passage in the Black Sea and ban military attacks by the two countries on energy facilities.

Back home, Indian equity benchmarks erased most of their initial gains and ended flat with positive bias on Tuesday as markets witnessed profit-booking after the recent sharp gains. Finally, the BSE Sensex rose 32.81 points or 0.04% to 78,017.19, and the CNX Nifty was up by 10.30 points or 0.04% to 23,668.65.  

Some of the important factors in trade:

Foreign fund inflows: Foreign Institutional Investors (FIIs) remained net buyers for the third straight session on Monday as they bought equities worth Rs 3,055.8 crore, according to exchange data.

India, US to expand bilateral trade ties: The commerce ministry has said that Indian and US officials will hold discussions this week to expand and deepen bilateral trade ties in a mutually beneficial manner and enhance supply chain integration. 

Private capex in India hits decade-low at 33% in FY24: ICRA report stated that private capital expenditure in India dropped to a decade-low 33% of total investments in FY24, with unlisted companies showing subdued investment compared to listed ones. The private sector focused on reducing debt instead of expanding.

Above views are of the author and not of the website kindly read disclaimer