Indian equity markets are expected to begin the session on a negative note due to global sell-offs triggered by escalating trade tensions between the US and China. However, sentiment may improve later in the day ahead of the RBI policy decision, where a 25 basis point rate cut is widely expected.

Key Factors to Watch Today:

RBI Policy Decision by Sanjay Malhotra Today:
RBI Governor Sanjay Malhotra is set to announce the first bi-monthly monetary policy of the current financial year today. A 25 basis point cut in the short-term lending rate is anticipated to support growth amid global uncertainties.

India, EU Consider Phased FTA Talks:
India and the European Union are exploring the possibility of negotiating a Free Trade Agreement (FTA) in phases, as global trade tensions rise following sweeping US tariffs.

India's Economic Momentum to Continue Despite US Tariffs:
Finance Minister Nirmala Sitharaman emphasized that strong domestic demand and economic resilience will keep India a global growth engine, even amid external pressure from US-imposed tariffs.

Piyush Goyal to Meet Exporters on Tariff Concerns:
Commerce and Industry Minister Piyush Goyal is scheduled to meet with exporters to address challenges arising from the US's 26% reciprocal tariffs, and strategize on mitigation measures.

PM Modi Meets Dubai Crown Prince:
Prime Minister Narendra Modi met Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, calling the visit “special” and highlighting it as a step toward enhanced India-UAE collaboration.

Global Market Overview:

US markets ended lower on Tuesday despite some optimism around ongoing tariff negotiations. Asian markets followed suit and traded mostly in red on Wednesday after US Treasury Secretary Scott Bessent indicated Japan could be prioritized in trade talks with the Trump administration.

Domestic Market Performance:

On Tuesday, Indian benchmarks rebounded strongly after Monday’s sharp fall. The BSE Sensex jumped 1089.18 points or 1.49% to close at RS. 74,227.08, while the CNX Nifty rose 374.25 points or 1.69% to RS. 22,535.85.

Government Measures on Trade:

Export Support Amid US Tariffs:
The Commerce Ministry is stepping up support for exporters by helping them identify new markets and forming a working group to monitor potential import surges from countries like China, aiming to counter the impact of US tariffs.

India’s Applied Tariffs to US ‘Not Humongous’:
Commerce Minister Piyush Goyal stated that India’s applied tariffs to the US are only 7-8%, downplaying concerns over disproportionate trade barriers. He reiterated India’s openness to bilateral pacts with nations following fair trade practices.

All Eyes on RBI Policy Decision Tomorrow:
The RBI's Monetary Policy Committee began its three-day meeting on Monday, with Governor Sanjay Malhotra set to announce the interest rate decision today. Markets are largely expecting a 25 basis point cut.