Indian equity markets are likely to make positive start on Wednesday following healthy quarterly results from India Inc and strong IIP numbers. Some support may come as Foreign institutional investors (FIIs) turned net buyers, purchasing equities worth Rs 755.33 crore on Tuesday. Traders are likely to adopt a wait-and-watch approach ahead of a key Federal Reserve interest rate decision later in the day.
Some of the key factors to be watched:
India’s industrial growth jumps to 7.3% in June: The Ministry of Statistics and Programme Implementation (MoSPI) in its quick estimates has showed that Index of Industrial Production (IIP) jumped to 7.3 percent for the month of June 2026 (Base 2022-23=100) from a revised growth of 5.0 percent in May 2026, supported by sharp expansion in manufacturing and strong growth in electricity and gas supply.
Net FDI decline due to increased repatriation by foreign investors: Minister of State for Finance Pankaj Chaudhary said Net foreign direct investment (FDI) declined in recent years, from $27.99 billion in FY23 to $6.95 billion in FY26, due to increased repatriation by foreign investors and rising Overseas Direct Investment (ODI) outflows.
India's trade deficit reflects growth & investment needs: Minister of State for Commerce and Industry Jitin Prasada said the country's merchandise trade deficit should be viewed as a by-product of India's stage of development, investment requirements and dependence on energy imports.
Govt considering proposal to ease FDI norms for downstream investments: The report said the government is considering a proposal to ease foreign direct investment (FDI) norms for downstream investments to boost overseas fund inflows and create jobs. The proposal is currently under inter-ministerial discussions.
Infrastructure projects see cost overrun of Rs 4.92 lakh crore: A monthly government report for June 2026 showed Infrastructure projects worth above Rs 150 crore each registered a cumulative cost overrun of around Rs 4,92,752 crore.
On the global front: The US markets ended mostly in green on Tuesday as gains in Boeing and Coca-Cola helped offset tumbling chip stocks ahead of quarterly reports from Apple and other tech companies this week. Asian markets are trading mixed on Wednesday following the mixed cues from Wall Street overnight.
Back home, Indian equity benchmarks remained in range-bound throughout the day and ended flat on Tuesday as investors turned cautious ahead of key global central bank policy meetings this week and heavy sell-off across Asian peers. Also, exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 1,688.23 crore on Monday. Finally, the BSE Sensex fell 69.86 points or 0.09% to 76,765.92 and the CNX Nifty was down by 10.60 points or 0.04% to 23,985.35.
Some of the important factors in trade:
US, India expanding defence, civil nuclear cooperation: US Assistant Secretary of State S Paul Kapur has said the United States and India are broadening cooperation in defence and civil nuclear energy, with a focus on trusted artificial intelligence (AI) and other emerging technologies that are driving economic growth.
Indian CV industry’s alternate fuel penetration to reach 40-45% by FY30: Rating agency ICRA in its latest report has said that penetration of alternate fuels, including CNG/LNG and electric vehicles (EV), in the Indian commercial vehicle (CV) industry is expected to increase to 40-45 per cent by FY30 from 27 per cent in FY26.
Govt has no plan to waive loans of small and marginal farmers: Minister of State for Finance Pankaj Chaudhary has said that the government has no proposal for a one-time waiver of loans of small and marginal farmers. He said to provide relief to borrowers in distress, the RBI issued the Master Direction on Resolution of Stressed Assets, 2025.
