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Indian equity markets are likely to make negative start on Wednesday, amid weak global cues. Traders are likely to adopt wait-and-watch approach ahead of the release of the India Composite PMI data later in the day. Additionally, sentiments could remain subdued ahead of the two-day Goods and Services Tax (GST) Council meeting, scheduled for September 3 and 4, 2025.

Some of the key factors to be watched:

India hopeful of concluding trade pact with US by November: Commerce and Industry Minister Piyush Goyal has expressed hope that India will conclude the proposed bilateral trade agreement (BTA) with the US by the fall or November this year.

India-China relations moving towards normalcy: Commerce and Industry Minister Piyush Goyal said that India-China relations are gradually moving towards normalcy, noting that as border issues get resolved, easing of tensions is a natural consequence.

Extension of export obligation period for chemical imports to provide relief to exporters: The government said that extension of the export obligation period for chemical imports under the advance authorisation scheme from 6 to 18 months will provide much-needed relief to exporters amid concerns over steep US tariffs.

India seeks WTO consultations with US over 50% duty on copper: India has sought consultations with the US under the World Trade Organisation's (WTO) safeguard agreement over 50 per cent tariffs imposed on certain copper products by America.

Next generation GST reforms will set economy open and transparent: Union Finance Minister Nirmala Sitharaman has said that the next generation GST reforms would absolutely set an economy open and transparent with further reduction in compliance burden and benefiting small businesses.

On the global front: The US markets ended in red on Tuesday, amid renewed trade uncertainty after the U.S. Court of Appeals for the Federal Circuit ruled most of President Donald Trump's global tariffs are illegal. Asian markets are trading mixed on Wednesday, tracking overnight losses on Wall Street. 

Back home, Indian equity benchmarks ended lower on Tuesday due to last-hour profit-taking in banking and Telecom shares amid caution ahead of the GST Council meeting.  The GST Council is meeting in New Delhi for two days beginning September 3 to discuss the proposed pruning of rates. Finally, the BSE Sensex fell 206.61 points or 0.26% to 80,157.88 and the CNX Nifty was down by 45.45 points or 0.18% to 24,579.60.

Some of the important factors in trade:

India, UAE discuss ways to increase trade in pharma, healthcare products: The commerce ministry said that India and the UAE have discussed ways to enhance and facilitate trade in pharmaceuticals and healthcare products with an aim to boost economic ties.

India-China relations normalizing: Commerce and Industry Minister Piyush Goyal said India-China relations are gradually moving towards normalcy, noting that as border issues get resolved, easing of tensions is a natural consequence.

India Inc investment key to 8% GDP growth: Former Reserve Bank Deputy Governor Michael Patra termed India Inc as a ‘missing actor’ not investing enough, saying if corporates start investing sufficiently, GDP growth can accelerate to over 8 per cent.

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