Indian equity markets are likely to make gap-up opening on Thursday, supported by strong global cues. Traders are likely to take support following the Federal Reserve’s decision to cut interest rates by 25 basis points, bringing rate down to 3.5 per cent from 3.75 per cent. However, some cautiousness come from foreign portfolio investors, who recorded net sales of equities worth Rs 1,674.79 crore on Wednesday.

Some of the key factors to be watched:

India US officials discuss trade pact issues on Day 1 of two-day talks: Commerce ministry said that India and the US have reviewed the ongoing negotiations for a proposed bilateral trade agreement to further strengthen economic ties.

FTA talks with Oman, New Zealand at last leg: Commerce and Industry Minister Piyush Goyal has said negotiations for Free Trade Agreements (FTAs) with Oman and New Zealand are in their last phase, and both are expected to be concluded soon. He indicated that negotiations for a trade pact with South American nation Chile will also be concluded soon.

India's Logistics cost down to 9%: Union transport minister Nitin Gadkari said the government has met the target to reduce logistics cost to 9 per cent of GDP from as high as 16 per cent due to good roads. He said the cost of logistics in China is 8 per cent of GDP, 12 per cent in Europe and the US but in India it was as high as 16 per cent.

NBFC vehicle loans to ride to Rs 11 lakh crore by March 2027: Crisil in its report said that assets under management (AUM) of vehicle loans of non-banking financial companies (NBFCs) will grow a steady 16-17% annually over the current and next fiscals to around Rs 11 lakh crore by March 31, 2027, supported by policy measures and macroeconomic tailwinds.

India should remain extremely cautious on giving concessions on agri products to US: Think tank GTRI said that India should remain extremely cautious about giving duty concessions to the US on agricultural crops or genetically modified products, and should insist on a drastic cut in the high tariffs.

On the global front: The US markets ended higher on Wednesday, after Fed announced its widely expected decision to cut interest rates by another quarter point. Asian markets are trading mostly in green on Thursday, tracking gains on Wall Street overnight.

Back home, Indian equity benchmarks continued to slide down for the third consecutive sessions on Wednesday and closed the day lower, dragged by a last-hour selloff in Consumer Durables, Capital Goods and IT shares. Investors were in a wait-and-watch mode, awaiting clarity from the US Federal Reserve before taking decisive positions. Finally, the BSE Sensex fell 275.01 points or 0.32% to 84,391.27 and the CNX Nifty was down by 81.65 points or 0.32% to 25,758.00. 

Some of the important factors in trade:

ADB upgrades India’s growth projection to 7.2% for fiscal year ending March 2026: The Asian Development Bank (ADB) has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. 

India, EU FTA talks progress: Commerce and Industry Minister Piyush Goyal has said negotiations for the India-EU free trade agreement are progressing, and a rough outline of the pact has been prepared. He said both sides are committed to an early conclusion of the deal.

Cement industry's stocks in watch: The Crisil Intelligence has estimated that Indian cement industry's volume likely to rise 8% to 9% year-on-year (YoY) in the second half of FY26, led by pent-up demand and better liquidity.