Opening Bell : Markets likely to get cautious start amid geopolitical tensions
Indian equity benchmarks are likely to make a cautious start on Wednesday, as traders weigh geopolitical tensions and wait for the Federal Reserve to provide an update on the central bank's interest-rate decision. Investors will also keep an eye out on the Bank of Japan’s interest rate decision.
Some of the key factors to be watched:
RBI, Bank of Mauritius sign MoU to promote rupee trade: Reserve Bank of India and the Bank of Mauritius have signed an MoU to promote the use of Indian Rupee and Mauritian Rupee for cross-border transactions.
India, Malaysia agree to speed up ASEAN FTA review: Commerce ministry said that India and Malaysia have agreed to take steps to speed up the review of the ASEAN-India Trade in Goods Agreement (AITIGA) for its substantial conclusion by 2025.
India, New Zealand's proposed FTA could boost trade by 10x in 10 years: India and New Zealand are negotiating a Free Trade Agreement (FTA), as part of which Union Minister for Trade and Commerce Piyush Goyal said that bilateral trade might see a great boom between two nations.
RBI to hold another OMO on March 25: The Reserve Bank of India has announced a fresh open market operation to purchase government securities worth Rs 50000 crore on March 25 to ease the market liquidity condition.
Sugar stocks will be in focus: Indian sugar industry body ISMA affirmed the stable and sufficient availability of sugar for the ongoing 2024-25 (October–September) marketing season, dispelling any concerns about potential shortages and supply constraints.
On the global front: The US markets ended in red on Tuesday, as concerns about the impact of President Donald Trump's trade policies continue to weigh on Wall Street along with worries about the economic outlook despite the release of some upbeat economic data. Asian markets are trading mixed on Wednesday as geopolitical tensions escalated as Israeli airstrikes pounded Gaza.
Back home, Indian equity benchmarks exhibited strong upward movement throughout the session and closed near the day's high points on Tuesday, powered by widespread buying amid a bullish trend in global equities. Finally, the BSE Sensex rose 1131.31 points or 1.53% to 75,301.26, and the CNX Nifty was up by 325.55 points or 1.45% to 22,834.30.
Some of the important factors in today’s trade:
India likely to remain fastest growing economy in next two years: The Organisation for Economic Co-operation and Development (OECD) in its latest report has said that India is likely to remain the fastest-growing major economy over the next two years with the GDP growth rate projected at 6.4 per cent for 2025 and at 6.6 per cent in 2026.
Rupee gained against US Dollar: Indian rupee appreciated for the third consecutive session against the U.S. dollar on Tuesday amid positive domestic equity markets and a weak American currency.
India resolved 28,818 insolvency cases under IBC: Union Minister Harsh Malhotra announced that 40,943 applications were filed under the Insolvency and Bankruptcy Code (IBC), with 28,818 resolved pre-admission, involving Rs 10 lakh crore. The IBC's introduction in 2016 improved India's global rank in resolving insolvency, facilitating a better environment for ease of doing business.
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