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Indian equity markets are likely to make cautious start on Thursday, amid mixed global cues. Sentiments may remain subdued due to ongoing geopolitical tensions, tariff-related concerns, and continued foreign funds outflows. However, some support may come amid optimism over India’s GDP growth at 7.4 per cent for FY26.

Some of the key factors to be watched:

India’s GDP to grow at 7.4% in FY26: The government data showed that India’s Gross Domestic Product (GDP) is likely to grow at a faster pace of 7.4 per cent during 2025-26, compared to 6.5 per cent in the previous year, driven by a strong performance in the services and manufacturing sectors, thus retaining its position as the world's fastest growing major economy.

India, Europe can bring stability into global economy, politics: External Affairs Minister S Jaishankar said that India is strengthening its relationship with Europe and both sides can bring more stability into the international economy and global politics.

India, France must work together to stabilise global politics: With the world witnessing a fractious geopolitical environment, External Affairs Minister S Jaishankar said that India and France working together has become important to stabilise global politics.

India needs to reduce imports and increase exports to become 3rd-largest economy: Union Minister Nitin Gadkari said that India will have to reduce imports and increase exports, if it wants to become the third-largest economy in the world.

EV retail sales surge 16.37% to over 22.70 lakh units in 2025: The Federation of Automobile Dealers' Association (FADA) said that Electric vehicle (EV) retail sales surged 16.37 per cent year-on-year to 22,70,107 units in 2025, driven by a 77 per cent jump in electric passenger car sales. 

On the global front: The US markets ended mostly in red on Wednesday despite the ADP said that private sector employment rose by 41,000 jobs in December after falling by a revised 29,000 jobs in November. Asian markets were trading mostly in green on Thursday, as investors digested uneven economic data from the United States.

Back home, Indian equity benchmarks drifted lower for the third day in a row on Wednesday as geopolitical tensions and renewed concerns about potential US tariff hikes weighed on investor sentiment. Sustained foreign fund outflows also dragged the markets lower. Foreign institutional investors offloaded equities worth Rs 107.63 crore on Tuesday, according to exchange data. Finally, the BSE Sensex fell 102.20 points or 0.12% to 84,961.14 and the CNX Nifty was down by 37.95 points or 0.14% to 26,140.75.

Some of the important factors in trade: 

MSME loans’ share doubles aided by public sector banks’ lending: Crisil Intelligence in its latest report has said that the share of loans to micro, small and medium enterprises has nearly doubled during January to October 2025 period, aided by public sector banks’ (PSBs) lending. 

India bank risk framework strengthened: Global rating agency Fitch said Indian banks are set to benefit from enhanced oversight by the Reserve Bank of India (RBI) and a more robust supervisory toolkit, which should reduce systemic risks and improve the operating environment.

Auto stocks were in watch: The Federation of Automobile Dealers Associations (FADA) has said that retail vehicle sales across all categories in India rose by 7.71% to 2,81,61,228 units in 2025, up from 2,61,45,445 units in 2024, with GST 2.0 helping overcome a subdued start to the year. 

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