Markets likely to get cautious start amid weak global cues

Indian markets are likely to get a cautious start on Wednesday tracking weak global cues. Though, some support may come as foreign institutional investors (FIIs) turned net buyers on June 23 after purchasing equities worth Rs 17.86 crore. Besides, crude oil prices remained lower as traders anticipated smooth supply from the crucial waterway, the Strait of Hormuz. 

Some of the key factors to be watched: 

India, US hold high-level trade talks: India and the United States have held high-level trade talks aimed at salvaging and recalibrating a proposed bilateral trade agreement after changes in US tariff policy upended a framework negotiated earlier this year.

India, UK hold meeting of key group, chart roadmap to deepen defence cooperation: As per a report India and the UK have held constructive and forward-looking deliberations at a meeting of a key group to chart a robust roadmap to deepen defence cooperation and strengthen the enduring partnership between its armies.

RBI simplifies onboarding of MSMEs on TReDS platform: The RBI has issued final directions on Trade Receivables Discounting System (TReDS) platforms with an aim to simplify the onboarding process for MSME sellers and allow financiers to avail a credit guarantee for exposures.

RBI's FCNR push may boost banks' deposit growth: Crisil Intelligence in its report said that the RBI's decision to withdraw the interest rate ceiling on fresh foreign currency non-resident (FCNR-B) deposits of three-five year tenors till September 30 provides banks greater flexibility to offer competitive rates, thereby supporting foreign currency deposit inflows.

In primary market: CSM Technologies’ initial public offering (IPO) will open for subscription today. It’s a book-build issue worth Rs 145.78 crore, which entirely consists of fresh issues. Meanwhile, Advit Jewels and Waterways Leisure Tourism IPOs will enter their second day of subscription. Both are book-built issues worth Rs 165.16 crore and Rs 585 crore, respectively.

Global front: The US markets ended lower on Tuesday dragged down by sharp losses in semiconductor stocks and braced for a more hawkish US Federal Reserve. Asian markets are trading mixed on Wednesday tracking overnight weakness on Wall Street. 

Back home, Indian equity benchmarks faced heavy selling pressure on Tuesday, dropping over 1 per cent, tracking a bearish trend in global markets along with weakness in Metal, IT and TECK stocks. Fresh foreign fund outflows also led to the weak trading in equities. Finally, the BSE Sensex fell 893.39 points or 1.16% to 76,200.68 and the CNX Nifty was down by 278.80 points or 1.16% to 23,824.10.

Some of the important factors in trade: 

June sees softer growth in India’s private sector: The HSBC Flash India Manufacturing PMI eased from final reading of 55.0 in May to 54.5 in June, while HSBC Flash India Services PMI Business Activity Index also fell to 57.3 in June from May’s final reading of 59.8.

Adverse monsoon, geopolitical tensions may weigh on India’s growth, inflation outlook: An article titled State of the Economy published in the Reserve Bank of India’s (RBI’s) June Bulletin has stated that an adverse south-west monsoon could pose headwinds to the domestic growth and inflation outlook, even as the global economic landscape remains fragile. 

Eight key infrastructure sectors’ output growth slows to 7-month low of 0.5% in May: The Ministry of Commerce & Industry in its latest data has showed that eight key infrastructure sectors’ output growth slowed to a seven-month low of 0.5 per cent in May 2026 due to a fall in output of coal, crude oil and refinery products.