Indian equity markets are likely to make negative start on Wednesday, tracking weak cues from global markets, as escalating US-Iran war in the Middle East weighs on risk appetite. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on June 9, 2026, with a net outflow of Rs 4,566.03 crore.
Some of the key factors to be watched:
India's exports rising steadily due to policy push, reforms: Senior Economic Adviser Agrim Kaushal has said that India's exports have witnessed consistent growth in recent years, driven by supportive government policies, improved digital infrastructure, better logistics and trade reforms.
GDP growth momentum intact, no need for additional borrowing so far: The report has said that the Indian economy is facing headwinds from external sectors with rising fuel and fertiliser import bills due to West Asia crisis, but GDP growth momentum remains intact with domestic consumption holding up.
RBI measures likely to attract $55-65 billion inflows in FY27: SBI research report has said that the Reserve Bank's recent measures are likely to help India attract $55-65 billion in inflows in the current fiscal, stabilise the rupee, and push the country's balance of payments into surplus.
India eyes more FDI, speed up divestment, asset monetisation as economy faces external risks: The report said the government plans to push ahead with reforms, including further measures to boost foreign investment, speeding up divestment and asset monetisation, as it seeks to preserve India's growth momentum in the face of rising fuel and fertiliser import costs triggered by the West Asia crisis.
Fertiliser Ministry seeks to double subsidy from Rs 1.71 lakh crore budgeted for FY27: The fertiliser ministry has sought to double the fertiliser subsidy for the current fiscal from Rs 1.71 lakh crore, as the West Asia conflict has led to a sharp increase in the cost of the imported soil nutrient.
Global front: The US markets ended mostly in red on Tuesday, as a chip-stock rally faded and the US said it had launched strikes against Iran. Asian markets are trading mostly lower on Wednesday following the mixed cues from Wall Street overnight.
Back home, Indian equity benchmarks ended over half percent higher on Tuesday as easing tensions between Israel and Iran improved investor confidence and supported a recovery in risk assets. Also, recovery in the local currency against the dollar strengthened the mood although the undertone remained cautious amid a weak monsoon forecast and foreign investor outflows. Finally, the BSE Sensex rose 394.50 points or 0.54% to 73,918.76 and the CNX Nifty was up by 119.10 points or 0.52% to 23,242.10.
Some of the important factors in trade:
India reports current account surplus of $7.1 billion, or 0.7% of GDP in Q4FY26: The Reserve Bank of India's (RBI) data on Developments in India’s Balance of Payments has showed that India reported a current account surplus of $7.1 billion, or 0.7% of Gross Domestic Product (GDP), in the January-March quarter of 2025-26 (Q4FY26).
BHAVYA scheme to drive investments, provide social-infra, create jobs in India: Commerce and Industry Minister Piyush Goyal has said that the Rs 33,660 crore Bharat Audyogik Vikas Yojna (BHAVYA) scheme will help attract huge investments, create jobs, and provide modern social infrastructure in the 100 industrial parks to be developed under this initiative.
Fitch Ratings lowers India’s GDP growth projections to 6.4% for FY27: Fitch Ratings in its latest report has lowered India’s Gross Domestic Product (GDP) growth projections to 6.4% for the current fiscal (FY27) from 6.7% estimated earlier in March, as rising prices erode real incomes and dampen consumer spending, amid resilient capital expenditure.
