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Indian equity markets are likely to make negative start on Thursday, tracking weak cues from global markets. Traders are likely to remain cautious amid renewed tensions between the US and Iran. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on June 3, 2026, with a net outflow of Rs 5,616.56 crore.

Some of the key factors to be watched:

India-Oman trade pact creates strong export push for India's textile MSMEs: The report said that the India-Oman trade pact provides significant market access opportunities for the textiles and apparel sector, placing India in a strong position to expand its exports and consolidate its presence in a key Gulf market.

India's economy resilient amid geopolitical uncertainties: Reserve Bank Deputy Governor Swaminathan J stated that India's economic activity has demonstrated resilience, fuelled by the growth of the industrial and services sectors, broad-based demand, and improving corporate performance, despite geopolitical uncertainties.

Govt reviews measures to protect Indian MSMEs from potential impact of West Asia crisis: Union Minister Jitan Ram Manjhi held a review meeting on measures to protect the country's MSMEs from the potential impact of the West Asia crisis, directing officials to closely monitor the evolving situation and develop timely strategies to address any challenges arising from the global developments.

Indo-US trade deal almost done: Suggesting that India-United States trade deal was 99 per cent complete, US Ambassador Sergio Gor said that both sides were trying to resolve the remaining ‘1 per cent’ sticking points and expected the long-awaited pact to be inked within the next several weeks.

RBI likely to hold repo rate at 5.25%: The high-powered Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, on Wednesday started its three-day brainstorming amid expectations that the central bank may leave the key policy rate unchanged at 5.25 per cent as the West Asia conflict poses challenges to inflation as well as economic growth.

Global front: The US markets ended lower on Wednesday, amid uncertainty about the situation in the Middle East. Asian markets are trading mostly in red on Thursday, tracking negative cues from Wall Street overnight.

Back home, Indian equity benchmarks recovered most of their intraday losses in volatile trading but ended lower on Wednesday dragged by heavy selling in IT stocks, a fresh spike in crude oil prices and persistent foreign fund outflows. Markets were also cautious ahead of the RBI's Monetary Policy Committee decision on Friday. Finally, the BSE Sensex fell 303.67 points or 0.41% to 74,346.17 and the CNX Nifty was down by 77.95 points or 0.33% to 23,405.60.    

Some of the important factors in trade: 

Fuel price hikes likely to push up food, core inflation: Amid lingering concerns over the inflationary impact of the West Asia conflict, Crisil in its report has said that rising petrol and diesel prices are set to exert fresh inflationary pressures on the Indian economy. 

India may get limited benefits from US tariffs reduction on industrial, agricultural equipment: Think tank Global Trade Research Initiative (GTRI) has said that India may get limited benefits from US tariffs reduction on selected industrial and agricultural equipment containing steel, aluminium or copper from 25% to 15%.

India’s services sector growth accelerates in May with rebound in external demand: India’s services sector continued to witness robust expansion in the month of May 2026, with strengthening demand for services such as freight, digital solutions, e-commerce, entertainment and IT. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.8 in May from 58.8 in April. 

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