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Indian equity markets are likely to make cautious start on Thursday, amid mixed global cues. Traders are likely to take some support after reports indicated that the sixth round of talks over an India-US trade agreement will take place shortly. However, some volatility may come after foreign institutional investors offloaded shares worth Rs 115.69 crore on a net basis on Wednesday.

Some of the key factors to be watched:

India in active dialogue with US for free trade pact: Commerce and Industry Minister Piyush Goyal said that India is in active dialogue with the United States for a free trade agreement. 

India not pursuing alternative to US dollar for global trade: Chief Economic Adviser V Anantha Nageswaran said that the country is not pursuing any proposal to replace the US dollar as international currency for global trade.

Goyal urges auto dealer to pass on GST rate cut benefits to consumers: Commerce and Industry Minister Piyush Goyal has urged auto dealer associations to pass on the benefits of Goods and Services Tax rate cuts to consumers.

Sebi eases compliance norms for FPIs investing only in govt securities: Markets regulator Sebi has said that foreign portfolio investors (FPIs) who put money only in government securities under the fully accessible route will not be required to furnish investor group details.

Auto stocks will be in focus: Union Minister Nitin Gadkari said that the government's aim is to make India's automobile industry number one in the world within five years.

On the global front: The US markets ended mostly in green on Wednesday, following the release of Labor Department report unexpectedly showing a modest decrease by producer prices in the U.S. in the month of August.  Asian markets are trading mostly in green on Thursday, as investors digested China’s August inflation data.

Back home, Indian equity benchmarks closed higher on Wednesday aided by strong foreign fund inflows. Exchange data showed Foreign Institutional Investors (FIIs) turned net buyers in the Indian equity market on Tuesday, with FIIs purchasing stocks worth Rs 2,050.46 crore. Hopes of a breakthrough in India-US trade talks also supported the markets. However, profit booking in Auto stocks and rise in crude oil prices capped further gains. Finally, the BSE Sensex rose 323.83 points or 0.40% to 81,425.15 and the CNX Nifty was up by 104.50 points or 0.42% to 24,973.10.    

Some of the important factors in trade: 

Fitch ups India’s FY26 GDP forecast to 6.9%: Fitch Ratings has upped India's GDP growth forecast for current fiscal year to 6.9 per cent from 6.5 per cent earlier on the back of strong June quarter growth and domestic demand drivers. 

India eyeing markets of 40 nations for pushing textile exports: Union Minister Giriraj Singh said that India is eyeing markets of 40 countries for pushing its textile exports following the imposition of 50 per cent tariffs by the US, which is the biggest market for the country's apparel shipments.

ECGC plans measures to help exporters deal with high tariffs: The Commerce Ministry said Export Credit Guarantee Corporation (ECGC) has proposed several measures, including covering losses from non-delivery of goods and providing enhanced cover for banks up to an export credit limit of Rs 50 crore, to help exporters cope with tariff disruptions.

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