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Indian equity markets are likely to make positive start on Thursday tracking a strong rally in global markets. However, sentiments may remain subdued due to continued outflows from foreign investors and ongoing geopolitical tensions.

Some of the key factors to be watched: 

Balanced trade relationship between India, Japan important for long-term sustainability: India said there is significant export potential for domestic firms in sectors such as pharmaceuticals, textiles, agriculture and services in Japan, stressing that a more balanced bilateral trade relationship is crucial for ensuring its long-term sustainability. 

RBI to conduct switch auction of G-Secs worth Rs 20 000 crore on March 9: The Reserve Bank of India (RBI) will conduct switch auction of government securities worth Rs 20,000 crore on March 9, 2026. 

Sebi eases AIF compliance reporting framework: Markets regulator Sebi has eased the compliance reporting framework for Alternative Investment Funds (AIFs) by introducing an annual reporting system and reducing the scope of quarterly filings, in a bid to improve ease of doing business. 

Foreign funds outflows: Foreign Institutional Investors net sold shares worth Rs 8,752.65 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 12,068.17 crore.  

Hospitality revenue to grow 9-12% in 2026: Rating agency ICRA in its report has said that India's hospitality sector is expected to post 9-12 per cent revenue growth in 2025-26, aided by steady demand across segments.

On the global front: The US markets ended in green on Wednesday as traders continued to pick up stocks at relatively reduced levels after the early sell-off on Tuesday. Asian markets are trading in green on Thursday following the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks continued their downward trajectory and ended sharply lower on Wednesday in tandem with a weak trend in Asian markets as the conflict in West Asia intensified, driving oil prices higher. Withdrawal of foreign funds also weighed on sentiment. On Monday, foreign institutional investors offloaded equities worth Rs 3,295.64 crore, according to exchange data. Finally, the BSE Sensex fell 1122.66 points or 1.40% to 79,116.19 and the CNX Nifty was down by 385.20 points or 1.55% to 24,480.50.

Some of the important factors in trade: 

India’s services sector witnesses softer growth in February: India’s services sector growth eased in the month of February, as new orders rose at the slowest pace since January 2025. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 58.1 in February from 58.5 in January. 

India’s current account deficit edges up to $13.2 billion in Q3FY26: The data released by the Reserve Bank of India (RBI) has showed that India’s current account deficit (CAD) edged up to $13.2 billion or 1.3% of Gross Domestic Product (GDP), in Q3FY26 from $11.3 billion or 1.1% of GDP in the year-ago period.  

India, Canada kickstart negotiations for CEPA to boost trade ties: With an aim to fast-track free trade agreement (FTA), India and Canada have launched formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

Indian equity markets are likely to make positive start on Thursday tracking a strong rally in global markets. However, sentiments may remain subdued due to continued outflows from foreign investors and ongoing geopolitical tensions.

Some of the key factors to be watched: 

Balanced trade relationship between India, Japan important for long-term sustainability: India said there is significant export potential for domestic firms in sectors such as pharmaceuticals, textiles, agriculture and services in Japan, stressing that a more balanced bilateral trade relationship is crucial for ensuring its long-term sustainability. 

RBI to conduct switch auction of G-Secs worth Rs 20 000 crore on March 9: The Reserve Bank of India (RBI) will conduct switch auction of government securities worth Rs 20,000 crore on March 9, 2026. 

Sebi eases AIF compliance reporting framework: Markets regulator Sebi has eased the compliance reporting framework for Alternative Investment Funds (AIFs) by introducing an annual reporting system and reducing the scope of quarterly filings, in a bid to improve ease of doing business. 

Foreign funds outflows: Foreign Institutional Investors net sold shares worth Rs 8,752.65 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 12,068.17 crore.  

Hospitality revenue to grow 9-12% in 2026: Rating agency ICRA in its report has said that India's hospitality sector is expected to post 9-12 per cent revenue growth in 2025-26, aided by steady demand across segments.

On the global front: The US markets ended in green on Wednesday as traders continued to pick up stocks at relatively reduced levels after the early sell-off on Tuesday. Asian markets are trading in green on Thursday following the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks continued their downward trajectory and ended sharply lower on Wednesday in tandem with a weak trend in Asian markets as the conflict in West Asia intensified, driving oil prices higher. Withdrawal of foreign funds also weighed on sentiment. On Monday, foreign institutional investors offloaded equities worth Rs 3,295.64 crore, according to exchange data. Finally, the BSE Sensex fell 1122.66 points or 1.40% to 79,116.19 and the CNX Nifty was down by 385.20 points or 1.55% to 24,480.50.

Some of the important factors in trade: 

India’s services sector witnesses softer growth in February: India’s services sector growth eased in the month of February, as new orders rose at the slowest pace since January 2025. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 58.1 in February from 58.5 in January. 

India’s current account deficit edges up to $13.2 billion in Q3FY26: The data released by the Reserve Bank of India (RBI) has showed that India’s current account deficit (CAD) edged up to $13.2 billion or 1.3% of Gross Domestic Product (GDP), in Q3FY26 from $11.3 billion or 1.1% of GDP in the year-ago period.  

India, Canada kickstart negotiations for CEPA to boost trade ties: With an aim to fast-track free trade agreement (FTA), India and Canada have launched formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

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