Indian equity markets are likely to make gap-up opening on Wednesday, after the US agreed to a two-week ceasefire with Iran. Traders are likely to adopt a wait-and-watch approach ahead of the outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, scheduled to be announced later in the day.

Some of the key factors to be watched:

India, New Zealand likely to sign FTA on April 24: India and New Zealand are likely to sign a Free Trade Agreement (FTA) on April 24, which will provide tariff-free access to domestic exporters for their goods in the island nation's market, and will bring in $20 billion of investment over the next 15 years.

Bank credit to grow around 13% this fiscal: Crisil Ratings said bank credit is poised to grow around 13% this fiscal, driven by healthy growth in the micro, small and medium enterprise (MSME) and retail sectors, as well as the continued preference of corporates for bank credit rather than issuance of bonds amid the prevailing interest rate differential.

EV retail sales in India rise 24.6% to 2.45 million units in FY26: Federation of Automobile Dealers Associations said total electric vehicle retail sales in India grew by 24.6 per cent at 24.52 lakh units in FY26 as compared to the previous fiscal, with every category delivering strong double-digit growth.

Jaishankar to host Bangladesh counterpart for crucial bilateral talks: External Affairs Minister S Jaishankar will host his Bangladeshi counterpart, Khalilur Rahman for wide-ranging talks in a significant initiative to repair bilateral ties after over 18 months of heightened diplomatic tension.

Sugar stocks will be in focus: Industry body ISMA said India's sugar demand is estimated to fall by 4 lakh tonnes during the March-April period due to short supply of commercial LPG and rainfall in some parts of the country.

On the global front: The US markets ended mostly higher on Tuesday after President Donald Trump delayed his threat to attack Iranian civilian infrastructure by two weeks. Asian markets are trading in green on Wednesday following the mixed cues from Wall Street overnight.

Back home, Indian equity benchmarks erased all of their initial losses and ended higher on Tuesday, as a drop in crude oil prices and a rally in global markets calmed investors' sentiment. Also, buying in IT, TECK and Realty stocks aided recovery in the markets after early losses. However, some caution also prevailed ahead of the outcome of the RBI’s Monetary Policy Committee (MPC) meeting, which is scheduled to be announced on Wednesday. Finally, the BSE Sensex rose 509.73 points or 0.69% to 74,616.58 and the CNX Nifty was up by 155.40 points or 0.68% to 23,123.65. 

Some of the important factors in trade:

India’s fiscal strength supports growth and stability: Finance Minister Nirmala Sitharaman has said that strong fiscal discipline has given India enough flexibility to increase capital expenditure, support sectors affected by the West Asia crisis, and allow the Reserve Bank of India to consider further rate cuts. 

RBI keeps FPI investment limit in government securities unchanged for FY27: The Reserve Bank of India (RBI) has said that the limit for foreign portfolio investors (FPIs) investing in government securities through the general route will remain unchanged at 6 per cent of the outstanding stocks of securities for 2026-27. 

India’s GDP growth likely at 6.7% in FY27 despite geopolitical tensions: CareEdge Ratings in its report said that India’s economic growth is expected to remain resilient in the face of rising global uncertainties, with GDP projected to expand at 6.7 per cent in FY27.