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Benchmarks likely to make cautious start on Wednesday
Sep-16-2026

Indian equity markets are likely to make a cautious start on Wednesday, amid rising crude oil prices and elevated US Treasury yields ahead of the US Federal Reserve’s policy decision. Sentiments may remain subdued as foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 2,977.86 crore on Tuesday.

Some of the key factors to be watched:

Unemployment rate dips slightly to 5% in August: Periodic Labour Force Survey (PLFS) data showed that the overall unemployment rate (UR) among persons aged 15 years and above dropped slightly to 5 per cent in August.

India’s current account deficit more than doubles to $7 billion in July: Reserve Bank data showed that India's current account deficit widened to $7 billion in July from $3.2 billion a year ago, mainly due to a higher merchandise trade deficit.

India’s exports up 26.12% to $43.81 billion in August: Government data showed that India’s exports increased by 26.12 per cent to $43.81 billion in August, and the trade deficit narrowed to $26.86 billion. The country’s imports rose by about 14.1 per cent to $70.76 billion in August.

India, New Zealand trade pact may come into force from later half of October: Commerce Secretary Rajesh Agrawal said that the India-New Zealand free trade agreement is likely to come into force late next month, with official dates to be announced shortly.

India, China start discussions on trade concerns: Commerce Secretary Rajesh Agrawal said that India and China have started discussions to address bilateral trade concerns, including structural trade imbalances and supply chain issues, with the two sides expected to hold more meetings to take the engagement forward.

Global front: The US markets ended lower on Tuesday, following the extended delay in the reopening of the Strait of Hormuz. Asian markets are trading mostly in green on Wednesday, despite the broadly negative cues from Wall Street overnight.

Back home, Indian equity benchmarks sharply reversed all morning gains to close in the deep red on Tuesday as elevated crude oil prices and rising global bond yields pressured Indian equities ahead of this week’s US Federal Reserve meeting. Continued foreign outflows also added pressure to Indian equities. Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 930.90 crore on Friday. Finally, the BSE Sensex fell 777.94 points or 1.04% to 74,003.82 and the CNX Nifty was down by 279.50 points or 1.19% to 23,118.60.

Some of the important factors in trade: 

Retail inflation based on CPI jumps to 4.82% in August amid higher food prices: Retail inflation, measured by the All India Consumer Price Index (CPI) with the base year 2024, rose to 4.82% (Provisional) in August 2026 from 4.45% (Final) in July 2026, largely driven by higher food prices. 

India’s WPI inflation climbs to 9.92% in August amid firm food, fuel, manufacturing prices: India's wholesale price index (WPI) inflation rose in the month of August 2026 to 9.92 per cent, as compared to 9.78 per cent in July 2026, on rising prices of food, manufactured items, and fuel and power. 

India, Canada start fourth round of negotiations for proposed CEPA: With an aim to strengthen bi-lateral relations, India and Canada have started fourth round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA), as the two sides look to conclude the talks this year. 
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