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Indian equity markets are likely to make negative start on Wednesday amid mixed global cues. Besides, investors will be watchful of Q1 earning release for more cues.

Some of the key factors to be watched:

Economy to grow at 6.5% in FY26 despite global tensions, trade uncertainties: Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev has indicated that Indian economy is expected to grow at 6.5 per cent in the current financial year, despite geo-political tensions and trade policy uncertainties.

Exports remain flat in June at $35.14 billion; trade deficit at $18.78 billion: The government data has showed that India's exports remained unchanged at $35.14 billion in June, while trade deficit stood at $18.78 billion in the month.

Unemployment rate remains unchanged at 5.6% in June: India’s unemployment rate remained flat at 5.6 per cent in June compared to May this year, slightly higher than 5.1 per cent in April this year.

Next round of India-EU talks on proposed trade pact in September: Special Secretary in the Department of Commerce L Satya Srinivas said India and the European Union (EU) will hold the next round of negotiations on the proposed free trade agreement (FTA) in September here as both sides have exchanged offers related to the services sectors last week.

Asset quality stress in MFI sector expected to persist in H1 FY26: ICRA has indicated that asset quality stress in the NBFC-MFI sector surged in 2024-25 amid borrower overleveraging as well as operational challenges, and the pressure is expected to persist in first half of the current fiscal.

On the global front: The US markets ended mostly in red on Tuesday as traders opted to book some profits following the recent rally. Asian markets are trading mixed on Wednesday tracking mixed cues from Wall Street overnight.

Back home, breaking 4-day losing run, Dalal Street witnessed upturn on Tuesday, with retail inflation falling to its lowest level in over six years, approaching the RBI's target range. Equity indices made a flat start but soon gained momentum and maintained upbeat mood till the end. Finally, the BSE Sensex surged 317.45 points or 0.39% to 82,570.91 and the CNX Nifty was up by 113.50 points or 0.45% to 25,195.80.

Some of the important factors in trade:

Cooling retail inflation: Continuing its easing trend for the eighth straight month, India's retail inflation, as measured by the Consumer Price Index (CPI), came down to 2.10 per cent in June 2025 from 2.82 per cent in May 2025 mainly due to subdued prices of food items.

India-US trade talks: Commerce and Industry Minister Piyush Goyal has said the negotiations between India and the US for a proposed trade agreement are going at a fast pace. The Indian team has reached Washington for the next round of talks on the first tranche of the bilateral trade agreement.

Rupee posts gains: The rupee appreciated against the US dollar tracking the weakness of the greenback in the overseas market and a decline in global crude oil prices. However, foreign fund outflows, along with uncertainties on the outcome of the ongoing India-US trade talks capped some gains in the local unit.

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