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Indian equity markets are likely to make a positive start on Thursday, tracking positive cues from global markets. Traders are likely to remain optimistic about Federal Reserve's interest rate cut next month. However, some volatility may come from uncertainty around a potential U.S.-Indian trade deal.

Some of the key factors to be watched:

India's economy to grow at 6.6% in 2025-26: The International Monetary Fund said India's economy is estimated to grow at 6.6 per cent in 2025-26, noting that the Goods and Services Tax reforms are likely to help cushion the country from the adverse impact of the 50 per cent tariffs imposed by the US.

Cabinet approves Rs 7,280 crore scheme to promote manufacturing of rare earth magnets: The Union Cabinet has approved a scheme to promote manufacturing of rare earth permanent magnets with an outlay of Rs 7,280 crore.

Government may give 2.5-3% subsidy benefits under Interest Equalisation Scheme for exporters: Private report said that the government is likely to provide subsidy benefits in the range of 2.5-3 per cent under the Interest Equalisation Scheme to exporters in certain sectors for pre- and post-shipment credit.

Foreign fund inflows: Foreign Institutional Investors (FIIs) bought equities worth Rs 4,778.03 crore on Wednesday, according to exchange data.

Auto stocks will be in focus: Short-range vehicle radar systems, widely used in automotive ADAS, that operate in the 77-81 GHz frequency range, have been exempted from the spectrum assignment rule by the telecom department. The move is expected to ease the process for the development of autonomous vehicles in the country.

On the global front: The US markets ended higher on Wednesday amid rising optimism about an interest rate cut by the US Federal Reserve in December. Asian markets are trading mostly in green on Thursday, tracking positive cues from Wall Street overnight.

Back home, snapping the three-day falling streak, Indian equity benchmarks ended over a percent higher on Wednesday on across-the-board buying aided by a rally in global peers amid growing hopes of a US Fed rate cut and fresh foreign fund inflows. Increasing optimism surrounding a potential truce between Russia and Ukraine also bolstered the investor sentiment. Finally, the BSE Sensex rose 1022.50 points or 1.21% to 85,609.51 and the CNX Nifty was up by 320.50 points or 1.24% to 26,205.30.  

Some of the important factors in trade: 

Ind-Ra ups India’s FY26 GDP growth projection to 7%: India Ratings and Research (Ind-Ra) has raised India's GDP growth projection for the current fiscal to 7 per cent on the back of high growth in the June quarter and less impact of the US tariff hike on global growth and trade.

India’s exports in positive zone this month so far: Commerce and Industry Minister Piyush Goyal said the country's exports, which fell by about 12 per cent in October, have rebounded this month till November 21, entering the positive territory.

Size of Indian economy likely to cross $4 trillion in FY26: Chief Economic Advisor (CEA) V Anantha Nageswaran has said that the size of Indian economy is expected to cross $4 trillion in current fiscal (FY26). He said with the geopolitics in a huge state of flux, economic growth is very vital prerequisite to maintain India's standing and leverage in the global scheme of things.

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