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Indian equity markets are likely to make a cautious start on Wednesday, amid mixed global cues. Traders are likely to adopt a cautious approach ahead of the release of industrial and manufacturing production data for April. However, the downside may be limited due to continued inflows from Foreign Institutional Investors (FIIs).

Some of the key factors to be watched:

Piyush Goyal meets exporters to discuss ongoing trade talks with US, EU: Commerce and Industry Minister Piyush Goyal has discussed a host of issues, including ongoing trade talks with the US and EU, in a meeting with exporters and urged them to increase the utilisation of free trade agreements (FTAs).

Indian export consignments gradually resuming through Red Sea route: The Federation of Indian Export Organisations (FIEO) said that Indian export consignments have gradually started moving through the Red Sea route again. The gradual movement signals a cautious recovery in shipments after months of disruptions on the route caused by regional tensions.

US-India trade pact to open new market access and energise exports: Finance ministry report said that US-India bilateral trade agreement could flip current headwinds into tailwinds, opening up new market access and energising exports. India and the US are likely to agree on an interim trade agreement before July 8 with India pushing for full exemption from the 26 per cent reciprocal tariff on domestic goods.

FDI inflows up 13 pc to $50 billion in 2024-25: The government data showed that Foreign direct investment (FDI) in India fell 24.5 per cent year-on-year to $9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at $50 billion during the entire previous financial year.

Coal stocks will be in focus: Ministry of Coal said that India's coal imports fell by 7.9 per cent, totalling 243.62 million tonnes (MT), compared to 264.53 MT during the just-concluded financial year 2024-25.

On the global front: The U.S. markets ended higher on Tuesday after President Donald Trump announced he is delaying a threatened 50 percent tariff on imports from the European Union. Asian markets are trading mixed on Wednesday, amid strong cues from US markets overnight.

Back home, Indian equity benchmarks ended lower by over half percent on Tuesday after profit-taking in FMCG, IT and Auto shares. Investors also remained cautious ahead of the release of industrial and manufacturing production data for April on Wednesday and the first quarter GDP numbers, scheduled to be announced later this week. Finally, the BSE Sensex fell 624.82 points or 0.76% to 81,551.63 and the CNX Nifty was down by 174.95 points or 0.70% to 24,826.20.

Some of the important factors in trade:

Government restores RoDTEP benefits for AA, SEZ, EOU exports: With an aim to boost India’s export competitiveness in global markets, the Government of India has restored benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs).

India's exports to reach $1 trillion in FY26: Federation of Indian Export Organisations (FIEO) said the country's overall goods and services exports are expected to reach $1 trillion during 2025-26. In 2024-25, the exports were aggregated at $825 billion.

India to become 4th largest economy in world by overtaking Japan by end of 2025: NITI Aayog member Arvind Virmani has said India is set to become the fourth largest economy in the world by overtaking Japan by the end of 2025.

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