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Indian equity markets are likely to make cautions start on Thursday amid mixed global market cues. Traders are likely to adopt wait-and-watch approach ahead of release of India's Manufacturing and Services Flash PMI. Additionally, selling by foreign portfolio investors (FPIs) could further dampen markets sentiments.

Some of the key factors to be watched:

India’s infrastructure sector growth slows down to 2% in July: Government report said that eight infrastructure sectors' growth fell to a two-month low of 2 per cent in July 2025 due to a dip in the production of coal, crude oil, natural gas, and refinery products.

Industry body SEA warns new vegetable oil rules may challenge smaller producers: Industry body SEA President Sanjeev Asthana said that the government's new vegetable oil regulation marks the sector's biggest overhaul in over a decade but could burden thousands of small producers lacking digital infrastructure.

India, Russia to adopt creative and innovative approach to confront geopolitical challenges: External Affairs Minister S. Jaishankar said India and Russia should come out with a creative and innovative approach to confront complex geopolitical challenges, amid growing tensions in New Delhi’s ties with Washington over its purchase of Russian crude oil.

EPFO registers record net addition of nearly 22 lakh members in June: The Employees' Provident Fund Organisation's (EPFO) provisional payroll data for June 2025 showed a net addition of 21.89 lakh members, marking the highest recorded addition since payroll data tracking began in April 2018.

Textile stocks will be in focus: The government data showed that exports of major textile commodities increased 5.37% to $3.10 billion in July 2025 compared to $2.94 billion in the year-ago period.

On the global front: The U.S. markets ended mostly in red on Wednesday, pressured by extended sell-off in technology stocks. Asian markets are trading mixed on Thursday following mixed cues from Wall Street overnight.

Back home, extending their winning streak to a fifth straight session, Indian equity benchmarks ended with gains on Wednesday, on heavy buying in IT, TECK and FMCG shares. Easing tensions over trade tariffs and hopes of peace between Russia and Ukraine enthused investors. Finally, the BSE Sensex rose 213.45 points or 0.26% to 81,857.84 and the CNX Nifty was up by 69.90 points or 0.28% to 25,050.55. 

Some of the important factors in trade: 

Export curbs ease positive sign, India must cut reliance amid $100 billion trade gap: The Global Trade Research Initiative (GTRI) has said that China's decision to ease restrictions on exports of rare-earth minerals and fertilisers to India is a positive signal, but India must work to reduce its dependence on the neighbouring country, with which it runs an alarming $100 billion trade deficit. 

Proposed 2-tier GST structure could lower effective tax rate, boost fiscal revenues over longer term: S&P Global Ratings Director YeeFarn Phua has said that the proposed 2-tier Goods and Services Tax (GST) structure could lower effective taxation rate and boost fiscal revenues over the longer term. 

Investment hike for 8% GDP growth: In order to achieve the ambitious growth target of 8%, parliamentary panel has pitched for raising the investment rate from 31% of the Gross Domestic Product (GDP) to 35%. Besides, the Standing Committee on Finance has urged the government to maintain sustainable, growth-oriented energy policies that prioritise affordability and efficiency while balancing climate commitments with economic and social objectives.

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