Indian equity markets prepare for a positive start on Wednesday supported by optimistic global cues and growing optimism over an India-US trade agreement. Foreign institutional investors turned net sellers on Monday, offloading equities worth Rs 1,148.64 crore while markets remained closed on Tuesday on account of Dussehra.

Key Market Factors And Trilateral Diplomacy

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. The India-New Zealand Free Trade Agreement, 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, marking the seventh trade pact to come into force in the last five years.

  • Free trade agreement signed on April 27
  • Engineering exports expected to hit an all-time high of $150 billion this fiscal
  • Economy growing at around 7.8 per cent

Defence Minister Rajnath Singh stated that India’s economy is growing at around 7.8 per cent even as several major economies face a slowdown, adding that the country contributes more than 16 per cent to global economic growth. During talks with his UAE counterpart, S Jaishankar noted that the situation in West Asia remains a matter of deep concern and India will support all efforts to promote peace through dialogue and diplomacy.

Global Equities And Earnings Anticipation

EEPC Chairman Pankaj Chadha stated that increasing exports in sectors like iron and steel and their products and machinery would help shipments reach the record milestone. U.S. markets ended mostly in the green on Tuesday, led by gains in healthcare stocks, amid strong corporate earnings.

  • Asian markets traded mostly in the green on Wednesday
  • Boosted by renewed interest in artificial intelligence-related stocks
  • Sensex tumbled 876 points on Monday

Back home, Indian equity benchmarks ended sharply lower on Monday after two days of a rally, with the Sensex tumbling 876 points. Investors continue to monitor global developments closely as technology earnings approach.