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Indian equity markets are likely to make a gap-up opening on Wednesday, on hopes that the US and Iran are looking at more talks to finalise a peace plan in West Asia. Traders are likely to adopt a wait-and-watch approach ahead of the release of the Wholesale Price Index (WPI) for March. However, some cautiousness may come as exchange data showed foreign institutional investors (FIIs) offloaded shares worth Rs 1,983.18 crore on Monday. Markets remained closed on Tuesday on account of Ambedkar Jayanti. 

Some of the key factors to be watched: 

India projected to grow at 6.5 per cent in FY27: The International Monetary Fund (IMF) said India’s economy is expected to grow a tad faster at 6.5 per cent in 2027 despite escalating tensions in West Asia. 

India retail inflation rises to 3.4% in March: The government data showed the retail inflation based on Consumer Price Index (CPI) rose to 3.40% (Provisional) in the month of March 2026 as compared to 3.21% in February 2026 on higher food prices. 

IMD projects below normal monsoon rains in 2026 amid El Nino concerns: With the anticipated emergence of the El Nino conditions, the India Meteorological Department (IMD) has projected that India is likely to receive below normal monsoon rains in 2026. 

Non-financial firms' sales rise in FY25: The Reserve Bank data showed net sales of non-financial private companies increased at a slower pace of 11.4 per cent in 2024-25 as compared to 11.7 per cent in the previous year. 

Automobile sector’s stocks will be in watch: Society of Indian Automobile Manufacturers (SIAM) said that Automobile wholesales in India posted a record at 2,82,65,519 units in FY26, up 10.4 per cent year-on-year with all segments -- passenger and commercial vehicles, two and three-wheelers - recording the highest-ever sales in a fiscal, with GST 2.0 proving to be a key growth driver.

On the global front: The US markets ended in green on Tuesday as easing geopolitical tensions between the United States and Iran boosted investor sentiment. Asian markets are trading in green on Wednesday following the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks recovered some losses and closed nearly a per cent lower on Monday as the failure of US-Iran negotiations heightened concerns of a prolonged conflict driving crude oil prices sharply higher. However, a gradual recovery in heavyweight stocks across sectors helped trim losses as the session progressed. Finally, the BSE Sensex fell 702.68 points or 0.91% to 76,847.57 and the CNX Nifty was down by 207.95 points or 0.86% to 23,842.65. 

Some of the important factors in trade:

West Asia conflict can hit India's remittances flow: Crisil Ratings said the West Asia conflict may impact India's remittance flow, as one-third of the inflows from the diaspora come from Gulf Cooperation Council countries. 

India-UK free trade pact may come into force from second week of May: The report said the India-UK free trade agreement, signed in July last year, is likely to come into force from the second week of May.

Policy reforms fuel sharp rise of 30.2% in patent filings: Commerce and Industry Minister Piyush Goyal has said that India recorded a 30.2% jump in patent application filings to 1,43,729 in 2025-26 from 1,10,375 in the previous fiscal.

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