Markets likely to make cautious start amid weak global cues

Indian equity markets are likely to make cautious start on Thursday, tracking weak global cues. Traders are likely to remain cautious amid lingering uncertainty over the India-US trade deal. However, some support may emerge as foreign institutional investors (FIIs) turned net buyers after a prolonged selling streak.

Some of the key factors to be watched:

India, Oman trade pact to boost exports of petroleum, machinery & other products: Think tank GTRI said the free trade pact between India and Oman, slated to be signed on December 18, will provide greater market access to domestic products such as petroleum, machinery, rice, iron and steel articles.

India, Argentina ink 2025-27 work plan to strengthen cooperation in agri sector: India and Argentina have signed a three-year work plan to strengthen the bilateral cooperation in agricultural research, capacity building, and technology exchange.

India is trusted global supplier of quality, affordable medicines: Commerce Secretary Rajesh Agrawal has said that India is a trusted global supplier of quality and affordable medicines, and the country's pharmaceutical exports have crossed $30 billion last fiscal.

Sebi eases rules for IPOs, debt markets fundraising: Capital markets regulator Sebi has announced several tweaks to mutual fund regulations around expense ratios and exit loads, seeking to adopt a ‘balanced’ stance which also assuages the asset management industry's concerns.

Telecom stocks will be in focus: Union Minister, Jyotiraditya M. Scindia, has presented data on India’s 5G success and the growth of telecom exports before the Lok Sabha. He informed that India’s telecom exports have increased by 72% over the last five years, while imports have remained stable at the same level.

On the global front: The US markets ended sharply lower on Wednesday amid renewed weakness among technology stocks, as reflected by the steep drop by the tech-heavy Nasdaq. Asian markets are trading mostly in red on Thursday, ahead of the Bank of Japan's two-day meeting.

Back home, Indian equity benchmarks failed to build on the gains recorded in the opening hours and ended on a negative note for the third consecutive session on Wednesday as the lack of progress in the US-India trade negotiations and extended selling by foreign portfolio investors have weighed on the sentiment. Finally, the BSE Sensex fell 120.21 points or 0.14% to 84,559.65 and the CNX Nifty was down by 41.55 points or 0.16% to 25,818.55.

Some of the important factors in trade: 

November sees 31% decline in India’s Outward FDI: The Reserve Bank of India’s (RBI) data has showed that India’s outward foreign direct investment (OFDI) commitments declined 30.82% to $2037.07 million in November 2025, from $2944.45 million in November 2024. 

India’s exports to China surge: The commerce ministry data showed Petroleum products, and electronic goods are helping India increase its exports to China, with which it has a huge trade deficit of about $100 billion. India's exports to China rose from $9.20 billion in April-November 2024 to $12.22 billion in April-November 2025, an increase of 32.83 per cent year-on-year.  

Inter-Ministerial Committee to monitor import, export: The government has constituted an inter-ministerial committee to monitor export and import trends and recommend corrective action wherever required.