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Indian equity markets are likely to make a gap-up opening on Friday, tracking positive global market cues as U.S. President Donald Trump has hinted at a very big trade agreement with India, along with easing tensions in the Middle East. Besides, fund inflows by Foreign Institutional Investors may boost investors' sentiments.

Some of the key factors to be watched:

India to become net exporter of energy in six-seven years: Union minister Nitin Gadkari has said that India will become the net exporter of energy in next six to seven years. He said the government is encouraging alternative fuel and biofuel such as ethanol, biodiesel, electric vehicles, and hydrogen.

Manufacturing sector sales grow 6% in FY25: RBI report said that the sales of listed manufacturing sector companies rose by 6 per cent during 2024-25 as compared to 3.5 per cent growth in the preceding year, mainly led by automobiles, electrical machinery, food and beverages, and pharmaceuticals industries.

Sebi extends rebalancing timeline rule to all passive MF breaches: Market regulator Sebi said that timelines for portfolio rebalancing in mutual fund schemes will now be applicable to all types of passive breaches across actively managed schemes, which was earlier limited to only asset allocation.

Indian team reaches Washington for next round of trade talks: Indian team, headed by chief negotiator Rajesh Agarwal, has reportedly reached Washington for the next round of trade talks with his US counterparts. The visit is important as both the countries are engaged in negotiations for an interim trade deal and are trying to finalise the pact before July 9, though there are challenges in areas like agriculture and dairy.

Auto stocks will be in focus: Ratings agency ICRA has lowered domestic passenger vehicles wholesale volume growth forecast to 1-4 per cent for FY26, citing concerns over high inventory levels and shortage of critical components such as rare earth magnets, especially for electric vehicles. 

On the global front: The U.S. markets ended green on Thursday, following the release of a slew of U.S. economic data, including a Labor Department report showing an unexpected decrease by initial jobless claims in the week ended June 21, 2025. Asian markets are trading mixed on Friday, as U.S. Commerce Secretary Howard Lutnick said the U.S. and China have finalized the understandings reached between Beijing and Washington during negotiations in Geneva and London.

Back home, Indian equity benchmarks surged over 1 per cent on Thursday, taking their winning momentum to the third day running, amid growing optimism following easing geopolitical tensions and buying in market heavyweights Tata Steel and Bajaj Finance. Finally, the BSE Sensex rose 1000.36 points or 1.21% to 83,755.87 and the CNX Nifty was up by 304.25 points or 1.21% to 25,549.00.

Some of the important factors in trade:

Icra retains India's FY26 GDP forecast at 6.2%: The rating agency Icra has retained its India's GDP growth forecast for fiscal 2025-26 at 6.2 per cent, assuming well-distributed monsoons and crude oil prices averaging around $70/barrel.

India’s economic activities resilient amidst global uncertainties: An article in the Reserve Bank of Indian (RBI) June Bulletin has said that amid global uncertainties, various high-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors.

FIIs remain net sellers in Indian equities: The provisional exchange data showed foreign institutional investors (FIIs) recorded a net outflow of Rs 2,427.74 crore in Indian equities on Wednesday, marking the third consecutive session of selling. So far in June, FIIs have withdrawn a total of Rs 3,243.18 crore from Indian equities. 

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