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Indian equity benchmarks are likely to open in a positive terrain on Wednesday, as investors likely to take some support with the US Federal Reserve decision to keep interest rates unchanged at 4.25%- 4.50%. Investors will also be keeping an eye out for the trading activities of foreign institutional investors, who offloaded, on a net basis, Indian equities worth Rs 1,096.50 crore on Wednesday.

Some of the key factors to be watched:

India's structural strengths lay strong foundation for growth: RBI March Bulletin said that sound fiscal policies, a well-calibrated monetary framework, and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth.

Cabinet approves incentive for low-value BHIM-UPI transactions: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the 'Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant (P2M)' for the financial year 2024-25.

Cabinet approves Rs 2790 Crore dairy development program: Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Revised National Program for Dairy Development with a budget increase to Rs 2790 crore for 2021-2026. Aimed at modernizing and expanding dairy infrastructure, the program targets better market access and higher incomes for farmers, alongside generating employment.

SEBI cuts minimum investment in social stock exchange instruments to Rs 1,000: Capital markets regulator SEBI said it has reduced the minimum investment amount for Zero Coupon Zero Principal (ZCZP) instruments on the Social Stock Exchange from Rs 10,000 to Rs 1,000.

FMCG stocks will be in focus: Crisil Ratings said India's FMCG sector is expected to witness a mild revenue rebound of 100 to 200 basis points to 6-8 per cent in fiscal 2026 on the back of a gradual recovery in urban and steady rural demand.

On the global front: The US markets ended in green on Wednesday, as Fed announced its widely expected decision to once again leave interest rates unchanged, but projections signaled the central bank is still likely to lower rates later this year. Most of the Asian markets are trading in green on Thursday following a rally on Wall Street.

Back home, Indian equity benchmarks ended on a positive note on Wednesday, taking their winning momentum to the third day running due to heavy buying in market heavyweights Tata Steel, Zomato and Power Grid Corporation amid fresh foreign fund inflows. Finally, the BSE Sensex rose 147.79 points or 0.20% to 75,449.05, and the CNX Nifty was up by 73.30 points or 0.32% to 22,907.60.  

Some of the important factors in trade:  

Fresh FII inflows: After a month of relentless selling, foreign institutional investors (FIIs) turned net buyers and purchased equities worth Rs 694.57 crore on a net basis on Tuesday, according to exchange data. 

RBI to conduct another OMO to infuse Rs 50,000 crore to ease liquidity crunch: With an aim to ease the liquidity crunch, the Reserve Bank of India (RBI) has decided to conduct open market operation (OMO) purchase auction of Government of India securities for an aggregate amount of Rs 50,000 crore to be held on March 25, 2025. 

Rupee logs gains: Rising for the fourth straight session, Indian rupee appreciated against the US dollar, supported by a positive trend in domestic equity markets and lower global crude oil prices.

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