IGI Logo

Indian equity markets are likely to make cautious start on Wednesday ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee meeting. Traders are likely to adopt wait-and-watch approach ahead of the India's Services and Composite PMI Final data for November. 

Some of the key factors to be watched:

No proposal to raise FDI limit for PSU banks to 49%: Minister of State for Finance Pankaj Chaudhary said that the government is not considering any proposal to raise the foreign direct investment (FDI) limit in public sector banks to 49 per cent, from the current 20 per cent.

India adds 31.2 GW green energy capacity in April-October: Union Minister Pralhad Joshi said that the India has added 31.2 GW of non-fossil fuel-based energy capacity in the April-October period of FY26. He also added that there has been no cancellation of awarded clean energy projects.

India’s railways freight loading up 4.2% in November: Ministry of Railways said that Indian Railways recorded a freight loading of 135.7 million tonnes in November 2025, registering a 4.2 per cent increase over 130.2 million tonnes in the same month last year.

FIIs outflow: Foreign Institutional Investors (FIIs) were net sellers in the market, selling shares worth Rs 3,642.30 crore on Tuesday. 

Pharmaceutical sector will be in focus: The Department of Pharmaceuticals has launched the scheme for Promotion of Research and Innovation in the Pharma Medtech sector with a view to promote research and development in the pharmaceutical sector, including in the areas of artificial intelligence (AI) and machine learning.

On the global front: The US markets ended higher on Tuesday amid a substantial rebound by Bitcoin, as the cryptocurrency soared by more than 6 percent after moving sharply lower on Monday. Asian markets are trading mostly in green on Wednesday, following the broadly positive cues from Wall Street overnight.

Back home, Indian equity benchmarks ended lower by over half percent on Tuesday due to selling in Banking, Industrials and Energy stocks and persistent foreign fund outflows. The decline was primarily driven by a sharp contraction in the IIP data, weakness in the rupee, and caution ahead of the upcoming US Fed and RBI policy decisions later in the week. Finally, the BSE Sensex fell 503.63 points or 0.59% to 85,138.27 and the CNX Nifty was down by 143.55 points or 0.55% to 26,032.20. 

Some of the important factors in trade:

RBI rate cut likely in December amid low inflation: Report by credit rating agency CareEdge said the RBI could announce a 25-basis point repo rate cut in its upcoming December monetary policy meeting, driven by a sharp decline in inflation and strong growth momentum. 

India in a sweet spot, GDP growth to be over 7% in FY26: New FICCI President Anant Goenka said India is in a sweet spot to sustain growth, and the GDP is expected to expand by over 7 per cent this financial year on the back of strong macro fundamentals and ongoing reforms.

FDI equity inflows in India rise 18% to $35.18 billion in H1FY26: The government in its latest data has showed that Foreign direct investment (FDI) equity inflows into India rose 18 per cent to $35.18 billion during April-September this fiscal year (H1FY26).

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