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Indian equity markets are likely to make cautious start on Wednesday as investors awaited U.S. Federal Reserve Chair Jerome Powell's comments to assess the Iran war's impact on the economy amid stalled peace talks. Sentiments may remain subdued amid outflows by foreign institutional investors (FIIs), as FIIs sold shares worth Rs 2,103.74 crore on Tuesday. 

Some of the key factors to be watched:

Industrial output growth slows to 5-month low of 4.1% in March: Data showed India's industrial production growth slowed down to a 5-month low of 4.1 per cent in March, mainly due to subdued performance of manufacturing and power sector amid the West Asia crisis. 

India-New Zealand FTA to double India’s engineering exports to $280-300 million in five years: Industry body EEPC India's Chairman Pankaj Chadha said India's engineering exports to New Zealand are poised to double over the next five years from $140.5 million to $280-300 million, following the signing of a free trade agreement (FTA) that grants zero-duty market access to all Indian goods.

Goyal to visit Canada for FTA talks: Commerce and Industry Minister Piyush Goyal has said that he will visit Canada next month to speed up negotiations for the proposed free trade agreement (FTA). On March 2, India and Canada launched negotiations for the agreement with an aim to finalise the pact soon. 

India steadily positioning itself as competitive maritime nation: Shipping Secretary Vijay Kumar said India is steadily positioning itself as a competitive maritime nation, supported by policy reforms, infrastructure expansion, and increased private sector participation. 

Airline stocks will be in watch: Rating Agency ICRA said India's domestic air passenger traffic grew 1.4 per cent year-on-year to 1,677.4 lakh in FY26, in line with its estimate of 0-3 per cent. All Indian airlines together had flown a total of 1,653.8 lakh passengers in FY25. 

Global front: The US markets ended in red on Tuesday as a sell-off in chip shares and rising oil prices weighed on Wall Street, while investors awaited major earnings from technology companies. Asian markets are trading mostly in red on Wednesday following the broadly negative cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended lower on Tuesday as unresolved tensions in the West Asia and persistent disruptions to energy supply, particularly the continued closure of the Strait of Hormuz, weighed on investor sentiment. Surging oil prices and foreign fund outflows also unnerved investors. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,151.48 crore on Monday, according to exchange data. Finally, the BSE Sensex fell 416.72 points or 0.54% to 76,886.91 and the CNX Nifty was down by 97.00 points or 0.40% to 23,995.70.

Some of the important factors in trade: 

India, New Zealand ink FTA to boost bilateral trade: With an aim to strengthen India’s global economic partnerships, India and New Zealand have inked a free trade agreement (FTA) at Bharat Mandapam, New Delhi. The FTA provides duty-free access for 100% of India's exports to New Zealand, covering all tariff lines or produce categories. 

Piyush Goyal discusses ways to boost shipments, enhance utilisation of FTAs: Post signing of India - New Zealand free trade pact, the Commerce and Industry Minister Piyush Goyal held discussions with exporters and representatives of industry associations on ways to boost the country's shipments and enhance utilisation of free trade agreements (FTAs). 

India’s DPI initiatives likely to contribute 4% of GDP by 2030: NITI Aayog in its report has said that India’s digital public infrastructure (DPI) initiatives are projected to contribute 4% of the Gross Domestic Product (GDP) by 2030, up from the current 1%.

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