Opening Bell : Markets likely to make cautious start amid foreign fund outflows
Indian equity markets are likely to make cautious start on Wednesday as investors may monitor the tension between the US and Iran. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on June 30, 2026, with a net outflow of Rs 2,556.75 crore. Traders are likely to remain on the sidelines ahead of the release of the final HSBC Manufacturing PMI data later in the day.
Some of the key factors to be watched:
India's manufacturing growth expected to moderate in April-June due to West Asia crisis: A FICCI Survey showed India's manufacturing growth is expected to moderate in the first quarter of the current fiscal compared to the previous quarter on account of muted business sentiment due to the West Asia crisis.
Banks NPA at multi-decadal low of 1.8%, Indian financial system remains resilient: The Reserve Bank said Indian financial system remains resilient, underpinned by strong bank and non-bank balance sheets, as gross non-performing assets of banks have touched a multi-decadal low of 1.8 per cent at end-March 2026.
Economy resilient but risks from monsoon, geopolitical uncertainties remain: The Finance Ministry report has said that the economy remains resilient, though moderation in some high-frequency indicators suggests a gradual easing of momentum, while flagging risks from uneven monsoon rainfall, emerging El Nino conditions and geopolitical uncertainties.
Bank credit to industry soars 17.5% in May: The Reserve Bank data showed bank credit to industry recorded a robust annual growth of 17.5 per cent in May as advances to large industries grew at an accelerated pace, along with sustained healthy expansion in the MSE sector.
Govt hikes petrol windfall tax, cuts diesel & ATF levies: The government has hiked the windfall gains tax on petrol exports, while lowering the levy on diesel and ATF, for the fortnight beginning July 1.
Global front: US markets ended higher on Tuesday as a rally in chipmakers and signs of economic resilience boosted optimism over corporate earnings. 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 for the second consecutive session on Tuesday due to selling in IT, TECK and FMCG shares amid uncertainty over the next round of US-Iran negotiations in Doha. The delayed onset and sluggish progress of the southwest monsoon and fresh foreign fund outflows also weighed on market sentiment. Finally, the BSE Sensex fell 249.70 points or 0.33% to 76,478.67 and the CNX Nifty was down by 80.50 points or 0.34% to 23,865.75.
Some of the important factors in trade:
External debt of India stands at $762.8 billion at end of March 2026: The Reserve Bank of India (RBI) in its data on 'India's External Debt as at the end of March 2026' has stated that total external debt of India stood at $762.8 billion at the end of March 2026, registering an increase of $26.3 billion over the year-ago period.
India's FTA negotiations with Israel, GCC currently on hold amid West Asia crisis: Commerce and Industry Minister Piyush Goyal has said that India's negotiations for free trade agreements (FTAs) with Israel and the six-nation Gulf Cooperation Council (GCC) are currently on hold due to the ongoing West Asia crisis.
India, Maldives start negotiations for free trade agreement: The commerce department stated that India and the Maldives have started negotiations for a free trade agreement. It said the discussions are being held via virtual mode and are expected to conclude on July 7 after beginning on June 29.
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