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Markets likely to make cautious start on Wednesday
Sep-23-2026

Indian equity markets are likely to make a cautious start on Wednesday following mixed cues from global markets. Sentiments may remain downbeat as foreign institutional investors (FIIs) continued their selling spree, offloading equities worth Rs 3,809.99 crore on Tuesday. Traders are likely to adopt a wait-and-watch approach ahead of the release of the HSBC Flash PMI data.

Some of the key factors to be watched: 

States' revenue growth to accelerate 9-11% this fiscal: Crisil Ratings in its report has said that revenue growth of 18 large Indian states is expected to accelerate to 9-11 per cent this fiscal, supported by stronger Goods and Services Tax (GST) collections and higher tax devolution from the Centre.

Public capex boosts private investment, capital formation: Finance Minister Nirmala Sitharaman said public capital expenditure has deliberately been used to crowd in private investment, and the impact is now visible in higher capital formation, improved manufacturing capacity utilisation and stronger bank credit to industry. 

Mines Ministry to launch incentive scheme for domestic lithium, nickel processing: Mines Secretary Keshav Chandra said the Mines Ministry will soon introduce an incentive scheme to promote the domestic processing of lithium and nickel.

India on track to add about 8 GW wind energy capacity in FY27: Rajesh Kulhari, Joint Secretary in the Ministry of New & Renewable Energy, said India is on track to achieve 7.5-8 GW wind energy capacity addition in the current fiscal year. He said that India has added over 6 GW of wind energy capacity in 2025-26.

India begins anti-dumping probes against imports of Glycine chemical from China: India has initiated anti-dumping probes against imports of Glycine, used as a flavour enhancer, and pharmaceutical ingredient from China, following a complaint filled by a domestic manufacturer.

Global front: U.S. markets ended mostly in red on Tuesday as the rebound in Treasury yields limited gains from chipmakers. Asian markets are trading mixed on Wednesday as oil prices fell on hopes of a peace deal for the Mideast conflict after US-Iran talks. 

Back home, Indian equity benchmarks failed to hold their opening gains and ended lower on Tuesday as selling in Capital Goods and IT stocks offset relief from falling crude oil prices and positive global cues. Traders remained cautious as exchange data showed foreign institutional investors (FIIs) turned net sellers on Monday, offloading equities worth Rs 576.20 crore. Investors also remained on sidelines ahead of potential US-Iran diplomatic talks at the UN General Assembly this week. Finally, the BSE Sensex fell 329.91 points or 0.44% to 74,529.08 and the CNX Nifty was down by 85.30 points or 0.36% to 23,329.00.

Some of the important factors in trade:

Nine key infrastructure sectors’ output growth slows to 4.8% in August: The Ministry of Commerce & Industry in its latest data has showed that nine key infrastructure sectors’ output growth slowed down to 4.8 per cent in August 2026 due to a fall in the output of coal, natural gas, crude oil, and fertiliser. 

India-Canada CEPA negotiations gain momentum, next round on October 5: With an aim to fast-track process of trade agreement, Commerce and Industry Minister Piyush Goyal has said that the negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between India and Canada are progressing and the next round of talks will be held from October 5, 2026. 

RBI accepts Rs 25,000 crore bids in second tranche of OMO sale: In the second tranche of its open market operation (OMO) sale of government securities, the Reserve Bank of India (RBI) has accepted bids worth Rs 25,000 crore, as it stepped up efforts to absorb surplus liquidity from the banking system.

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