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Markets likely to make negative start amid mixed global cues
Oct-07-2026

Indian equity markets are likely to make a negative start on Wednesday following mixed global market cues and cautiousness ahead of the Reserve Bank of India's (RBI) monetary policy meeting outcome. Sentiments may remain subdued as foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 2,961.30 crore on Tuesday.

Some of the key factors to be watched: 

India’s manufacturing sentiment improves in July-September quarter: According to the latest edition of the FICCI Manufacturing Survey released, India's manufacturing sentiment improved in the July-September quarter as factories reported higher capacity utilisation and higher or same levels of production as compared to the previous quarter. 

Sitharaman, Swiss President discuss investment treaty: Finance Minister Nirmala Sitharaman has met Swiss President Guy Parmelin here and discussed issues of common interest between India and Switzerland, including taking forward negotiations on the Bilateral Investment Treaty (BIT). 

India among top 10 emerging markets in AI readiness; private AI investment triples: The World Bank said India is among the top 10 leading emerging-market performers in artificial intelligence (AI) readiness and is well positioned to harness the technology, helped by its large technical workforce, globally integrated IT sector and digital public infrastructure. 

Cabinet approves Rs 10,000 crore SME Growth Fund for manufacturing: The government has committed Rs 10,000 crore to establish an SME Growth Fund (SGF) for direct equity investments in Small and Medium Enterprises.

Nasscom urges GST clarity for overseas service exports: Ahead of the GST Council meeting, IT-ITES industry body Nasscom has flagged two outstanding issues on services exports -- the treatment of services supplied through branches abroad, and R&D done in India on prototypes provided by overseas customers. 

On global front: The U.S. markets ended higher on Tuesday as oil prices retreated on easing supply worries, which helped temper concerns about rising government borrowing costs. Asian markets are trading mostly in red on Wednesday despite the broadly positive cues from Wall Street overnight.

Back home, extending their previous session's rally, Indian equity benchmarks ended sharply higher on Tuesday, as crude oil prices slipped below the $100 mark after a large G7 stockpile release and alternative supply measures helped offset disruptions to vessel movements through the Strait of Hormuz. Meanwhile, market participants remained focused on the RBI's monetary policy decision due tomorrow. Finally, the BSE Sensex rose 685.34 points or 0.95% to 73,067.81 and the CNX Nifty was up by 220.35 points or 0.98% to 22,776.10.  

Some of the important factors in trade:

World Bank raises India’s economic growth forecast to 7.1% for FY27: The World Bank in its latest October economic update has raised India’s economic growth forecast to 7.1 per cent for fiscal year 2026-27 (FY27) from 6.6 per cent forecasted in April, supported by robust domestic demand and strong exports, despite global headwinds. 

India’s services sector strengthens in September on improving demand conditions: According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August. New orders increased sharply in September and at the fastest rate in three months. 

India-US trade talks reach ‘plateau’, limited room for further concessions: Regarding India-US trade pact, Finance Minister Nirmala Sitharaman has said that negotiations for the India-US trade agreement are still underway, but both sides appear to have reached a 'plateau', with limited room for further concessions from either side.

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