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Indian equity markets are likely to make a cautious start on Wednesday, amid mixed global cues. Investors sentiment may be weighed down by uncertainty surrounding India-US trade negotiations and ongoing US-China trade talks. However, downside may be limited due to ongoing foreign institutional investor (FII) inflows.

Some of the key factors to be watched:

India, EU Very Near to finalizing free trade agreement: Commerce and Industry Minister Piyush Goyal said that India and the 27-nation EU bloc are really very near to concluding talks for the proposed free trade agreement, with only a few issues left to be resolved.

Jaishankar holds productive India-EU strategic dialogue in Brussels: External Affairs Minister S Jaishankar held very open and productive talks with the European Union's High Representative in Brussels, covering areas of defence and security, maritime security, cyber and space.

India, US move closer to trade deal after week-long negotiations: The Private report said that India and the US teams discussed issues pertaining to market access, digital trade, and customs facilitation during the week-long deliberations on the proposed bilateral trade agreement.

Goyal proposes dedicated enclave for swiss businesses: Commerce and Industry Minister Piyush Goyal has proposed to develop a dedicated enclave for Swiss businesses in India as he sought to attract investment from the European country.

Inflow into equity MFs hits 13-month low at Rs 19,013 crore in May: Association of Mutual Funds in India (Amfi) report showed that Inflow in equity mutual funds slumped to its lowest level in 13 months to Rs 19,013 crore in May, with large-cap, mid-cap and small-cap funds experiencing lowered inflows, primarily triggered by profit booking by investors.

Finance Minister asks regulators to expedite refund on unclaimed deposits: Finance Minister Nirmala Sitharaman has asked regulators and departments to expedite the refund of unclaimed deposits to rightful owners and streamline the KYC process.

On the global front: The U.S. markets ended in green on Tuesday, while Asian markets are trading mostly in green on Wednesday, as traders await the outcome of the ongoing trade talks between China and the U.S. in London, while U.S. Commerce Secretary Howard Lutnick told reporters the talks are 'going well,' there has been no breakthrough as of yet.

Back home, Indian equity benchmarks, after four-day continued rally, took a halt and ended flat on Tuesday as investors avoided to take risk ahead of the U.S.-China trade talks. Markets made positive start but soon turned volatile and were hovering around neutral lines. Weak opening in European counterparts weighted down on investor sentiments. Finally, the BSE Sensex fell 53.49 points or 0.06% to 82,391.72 and the CNX Nifty was up by 1.05 points to 25,104.25.

Some of the important factors in trade:

Goyal to meet Swiss, Swedish business leaders to boost trade & investment: Some support came as the commerce and industry ministry said that Commerce and Industry Minister Piyush Goyal will meet Swiss and Swedish business leaders this week and discuss ways to boost trade and investments. Goyal is visiting Switzerland and Sweden from June 9 to 13.

No declining trend in FDI into India, seeing renewed overseas inflows: Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that there is no declining trend in Foreign Direct Investments (FDI) into India, though periodic fluctuations may occur sometimes due to global interest rate changes.

FM asks NIIF to leverage its sovereign-backed design: Finance Minister Nirmala Sitharaman has asked the National Investment and Infrastructure Fund (NIIF) to leverage its sovereign-backed design to showcase its performance at the global stage.

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