Indian equity markets are likely to make a positive start on Wednesday, supported by optimistic global cues and growing optimism over an India-US trade agreement. However, traders may remain cautious as foreign institutional investors (FIIs) turned net sellers on Monday, offloading equities worth Rs 1,148.64 crore. Meanwhile, markets were closed on Tuesday on account of Dussehra.
Some of the key factors to be watched:
Jaishankar, Rubio, Al Nahyan meet on energy, economy: External Affairs Minister S Jaishankar, US Secretary of State Marco Rubio and UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan met in Mumbai in a trilateral format to discuss regional energy security and advance shared economic priorities.
India-New Zealand FTA kicks in, boosting trade & opportunities: The India-New Zealand Free Trade Agreement (FTA), signed on April 27, came into effect on October 20, providing duty-free access to a range of Indian goods, including products from labour-intensive sectors such as textiles and leather. It is the seventh trade pact to come into force in the last five years.
India’s economy growing at 7.8% even as several major economies face slowdown: Defence Minister Rajnath Singh said that India’s economy is growing at around 7.8 per cent, even as several major economies face a slowdown. He also added that the country contributes more than 16 per cent to global economic growth.
West Asia situation ‘matter of deep concern’: During talks with his UAE counterpart Sheikh Abdullah bin Zayed Al Nahyan, External Affairs Minister S Jaishankar said the situation in West Asia remains a matter of ‘deep concern’ and India will support all efforts to promote peace through dialogue and diplomacy.
Engineering exports to hit record $150 billion this fiscal: EEPC Chairman Pankaj Chadha said the country's engineering exports are expected to reach an all-time high of $150 billion this fiscal. He said that increasing exports in sectors like iron and steel and their products and machinery would help shipments.
Global front: U.S. markets ended mostly in green on Tuesday, led by gains in healthcare stocks, amid strong corporate earnings. Asian markets were trading mostly in green on Wednesday buoyed by renewed interest in artificial intelligence-related stocks.
Back home, Indian equity benchmarks ended sharply lower on Monday after two days of a rally, with the Sensex tumbling 876 points and the Nifty dropping below 22,900 mark, following a decline in private bank stocks, mainly HDFC Bank and Axis Bank, and weak global trends. Adding to the worries, foreign portfolio investors (FPIs) have withdrawn Rs 52,100 crore from Indian equities in October so far, as elevated crude oil prices, higher US bond yields and a stronger dollar weighed on investor sentiment. Finally, the BSE Sensex fell 876.37 points or 1.17% to 73,852.90 and the CNX Nifty was down by 257.20 points or 1.11% to 22,888.95.
Some of the important factors in trade:
India needs rapid reforms to become developed nation by 2047: Expressing optimism about India’s growth prospects, NITI Aayog Vice Chairman Ashok Kumar Lahiri has said that India needs rapid economic reforms and structural changes to become a developed nation by 2047.
India’s FTAs provide preferential access to markets accounting for major share of global trade: Underscoring the significant commercial opportunities offered by India’s Free Trade Agreements (FTAs), Union Minister of Commerce and Industry Piyush Goyal has noted that India’s agreements provide preferential access to markets accounting for a major share of global trade.
Trump’s sanctions waiver under SRIA provides temporary respite for India: The Global Trade Research Initiative (GTRI) said that US President Donald Trump's waiver from sanctions, restrictions and tariffs under the Sanctioning Russia and Iran Act (SRIA) provides India temporary relief but offers no lasting certainty. India should safeguard its energy security and buy oil on commercial terms.
