Markets likely to make negative start amid mixed global cues

Indian equity markets are likely to make a negative start on Thursday amid mixed global cues after U.S. inflation rose more than expected in July, adding uncertainty to the Federal Reserve’s September policy decision. However, some support may come as foreign institutional investors (FIIs) remained net buyers, purchasing equities worth Rs 502.63 crore on Wednesday. 

Some of the key factors to be watched:

India-Japan trade may reach $50 billion by 2030: Industry body Assocham said India's bilateral trade with Japan is expected to reach $50 billion by 2030 on account of the growing economic complementarities and deeper business engagement between the two countries.

Piyush Goyal to visit US in September for G20 trade meet, talks with USTR Greer: The report said Commerce and Industry Minister Piyush Goyal will visit the US in late September to attend the G-20 Trade Ministerial in Milwaukee and hold bilateral talks with USTR Jamieson Greer, with trade pact issues to figure in the discussions.

India on track to become third-largest economy despite global crisis: Defence Minister Rajnath Singh said India is among the world's top five economies and would have become the third largest soon had the recent global crisis not occurred, but it would certainly reach that milestone too.

Hoping to work towards further expanding scope of India-Japan trade pact: Commerce and Industry Minister Piyush Goyal has said that he discussed reviewing the current trade pact with his Japanese counterpart, and both hope to work towards further expanding its scope. The two countries implemented a Comprehensive Economic Partnership Agreement (CEPA) in August 2011.

NRI deposit inflows dip 23% in Q1 FY27: The Reserve Bank of India (RBI) in its latest data has showed that deposits by non-resident Indians (NRIs) declined over 23 per cent year-on-year to $2.775 billion during April-June 2026-27 (Q1 FY27). NRI deposits had recorded inflows of $3.614 billion in the April-June period of 2025-26.   

Global front: U.S. markets settled slightly in red on Wednesday as hotter-than-expected July inflation raised fresh questions over the Federal Reserve’s policy path. Asian markets are trading mostly in green on Thursday after Nvidia’s latest earnings report beat expectations, boosting investor sentiment . 

Back home, Indian equity benchmarks erased all morning gains and ended lower on Wednesday as investors took a cautious approach ahead of release of US inflation data, due later in the day, which could provide clues about Federal Reserve’s interest rate trajectory. Traders also assessed the development in West Asia. Finally, the BSE Sensex fell 183.15 points or 0.24% to 77,472.94 and the CNX Nifty was down by 126.80 points or 0.52% to 24,207.75.  

Some of the important factors in trade: 

Goyal pitches India as trusted destination for data centres, cites $200 billion investment commitments: Commerce and Industry Minister Piyush Goyal has pitched India as a compelling destination for data centres, saying the country can work with Japanese companies to develop the sector and has already received investment commitments of about $200 billion from large hyperscalers globally.

Domestic economy demonstrates notable resilience to ongoing global headwinds: The ‘State of the Economy’ article featured in the Reserve Bank of India’s (RBI) August 2026 Bulletin observed a divergence between external and domestic economic environment, stating that the global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand, and rising manufacturing and services activity.

RBI's proposal to prohibit NBFCs’ revolving credit may disrupt MSME working-capital funding: The Federation of Indian Micro and Small and Medium Enterprises (FISME) has flagged concerns over Reserve Bank of India’s (RBI) proposal to prohibit Non-Banking Financial Companies (NBFCs) from providing revolving credit.