Indian equity markets are expected to open on a steady to mildly positive note on Wednesday, extending the momentum from the sharp rebound seen in the previous session after the announcement of a framework for an India–US trade deal.
The strong rally on Tuesday helped benchmarks recover a large part of the losses triggered by post-Budget caution, and investors will now look for follow-through buying to assess whether the upswing has legs or if it was largely driven by short-covering and headline-based optimism.
Sentiment remains anchored around the potential benefits of the proposed trade framework, particularly the prospect of lower tariffs and improved market access, which could aid export-oriented sectors, manufacturing-linked stocks and select industrial names. At the same time, participants are aware that concrete details are still awaited, which may temper aggressive positioning. As a result, while the near-term tone appears constructive, traders are likely to stay selective rather than chase the broader market higher.
Global cues are mixed, with Asian markets showing cautious trends amid lingering concerns over growth, geopolitics, and the outlook for global interest rates. Overnight moves in US equities and commodities are expected to influence domestic sentiment, especially in IT, metals and energy stocks.
Currency movements will also be closely tracked, as any sharp swing in the rupee could impact foreign portfolio flows and export-heavy sectors.
Domestically, the focus remains on post-Budget positioning, corporate earnings updates and stock-specific developments. Financials, which have seen bouts of volatility in recent sessions, may witness selective buying on expectations of stable asset quality and steady credit growth, while consumer-facing stocks could remain sensitive to demand outlook and margin commentary. Infrastructure and capital goods names may continue to attract interest on hopes of sustained public spending and project awards.
“Equity markets continue to draw support from positive progress in India-US trade discussions, which remains the key sentiment driver today. Improved visibility on external trade risks has revived confidence and renewed interest in export-oriented sectors. After the strong multi-day rally, some profit-booking and range-bound action cannot be ruled out,” says R Ponmudi, CEO at broking and wealth tech firm Enrich Money.
In addition, stocks such as Adani Enterprises, Bajaj Finance, NBCC, and Varun Beverages are likely to be in focus, with traders watching for catalysts from trade deal implications, earnings momentum, and sector-specific news flows.
From a technical perspective, the market has reclaimed key short-term support zones, which improves the near-term structure. However, strong resistance levels lie ahead, and any failure to decisively move past these could invite profit-taking. Intraday volatility is therefore likely, with traders expected to adopt a buy-on-dips approach rather than aggressive longs at higher levels.
Overall, Wednesday’s session is likely to be characterised by a positive bias, but with caution. The market will look for confirmation that Tuesday’s surge marks the start of a more durable uptrend, while keeping an eye on global developments, further clarity on the contours of the India–US trade framework, and key stock-specific triggers.