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Indian equity markets are likely to make a positive start on Wednesday, amid strong global cues. Traders are likely to take some support after US President Donald Trump signaled progress toward a possible final agreement with Iran, easing geopolitical concerns. However, market sentiments may remain cautious as Foreign Institutional Investors (FIIs) turned net sellers, pulling out Rs 3,621.58 crore from equities on May 5, 2026.

Some of the key factors to be watched: 

India has been the most resilient large emerging market economy since 2020: Moody's Ratings said India has been the most resilient large emerging market economy since 2020, and its sizeable forex reserves have helped check currency volatility and reinforce confidence during global shocks.

India, Jamaica agree to boost trade, skilled mobility: External Affairs Minister S Jaishankar has said that India and Jamaica have agreed to strengthen trade linkages and explore cooperation for recruitment and mobility of skilled professionals, including healthcare workers and teachers.

India's GDP growth could slow down to under 6.5% due to West Asia crisis: CII President Rajiv Memani said that a prolonged West Asia conflict characterized by significant shipping disruptions and elevated energy prices poses a serious threat to India's economic growth momentum and may pull down the country's GDP growth to less than 6.5 per cent.

Middle East crisis to moderate India's growth by 0.6% to 6.3%: ADB Chief Economist Albert Park said the ongoing Middle East crisis is going to shade off India's GDP growth by 0.6 percent to 6.3 percent and also stoke inflation significantly in the current financial year, as per the latest update.

India now an emerging defence exporter: Union Minister Jitendra Singh said India has transitioned from a major importer of defence equipment to an emerging exporter.

Global front: The US markets ended higher on Tuesday after President Donald Trump indicated that talks with Iran were moving closer to a final agreement. Asian markets are trading mostly in green on Wednesday, tracking positive cues from Wall Street overnight.

Back home, Indian equity benchmarks ended on a weaker note on Tuesday as fresh tensions flared in the Strait of Hormuz region and the ceasefire between the US and Iran came under strain. The rupee hitting a record low against the US dollar amid elevated crude prices also made investors cautious. However, markets staged a partial recovery in the latter half as exchange data showed Foreign Institutional Investors (FIIs) turned buyers on Monday, buying equities worth Rs 2,835.62 crore. Finally, the BSE Sensex fell 251.61 points or 0.33% to 77,017.79 and the CNX Nifty was down by 86.50 points or 0.36% to 24,032.80.  

Some of the important factors in trade:

Govt’s net direct tax collection rises 5.12% in FY26: Data released by the Central Board of Direct Taxes (CBDT) showed that the government's net direct tax collections grew 5.12 per cent to over Rs 23.40 lakh crore in 2025-26, but missed the revised target set for the fiscal year that ended March 2026. 

India, Canada begin next round of FTA talks: The report said that India and Canada on Monday started second round of negotiations for a free trade agreement aimed at boosting two-way commerce and investments. 

India most resilient emerging mkt economy: Moody's Ratings said India has been the most resilient large emerging market economy since 2020, and its sizeable forex reserves have helped check currency volatility and reinforce confidence during global shocks. 

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