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Indian equity markets are likely to make positive start on Friday, following strong global cues amid growing hopes of interest rate cut by US Federal Reserve next week. Traders are likely to adopt wait-and-watch approach ahead of release of India’s consumer price index (CPI) data for the month of August, later in the day . 

Some of the key factors to be watched:

Trade pact with EU to provide huge opportunities for Indian auto industry: Special Secretary in the Department of Commerce Rajesh Agrawal said the proposed trade pact with the European Union (EU) will provide huge opportunities for the domestic auto industry to boost exports and forge new partnerships with leading automobile giants from the 27-nation bloc.

GST reforms to lower tax on coal, reduce power generation cost: The government has said that the GST reforms will bring down the overall tax on coal and reduce the cost of power generation.

India must develop rare earth magnet ecosystem urgently: Society of Indian Automobile Manufacturers President Shailesh Chandra said that India must act decisively to fully leverage the vast opportunities that exist in India for developing the entire rare earth magnet ecosystem.

FIEO seeks RBI intervention; Exporters face high tariffs, input cost inflation: Exporters' body FIEO has sought immediate intervention of the Reserve Bank, citing multiple challenges faced by the export sector, including rising tariffs, input cost inflation, demand volatility, and stressed that banks must act not just as financial enablers but as long-term partners in export sustainability.

Sugar stocks will be in focus: The Indian Sugar and Bio-energy Manufacturers Association (ISMA) said that India's sugar output is expected at 34.90 million tonne in the 2025-26 season starting in October. Overall, improved cane quality in Maharashtra, Karnataka, Uttar Pradesh, and Tamil Nadu is supporting a marginal rise in sugar output.

On the global front: The US markets ended in green on Thursday, after weak unemployment data supported optimism about interest rate cut by Federal Reserve in its September meeting. Asian markets are trading mostly in green on Friday, tracking positive cues from Wall Street overnight.

Back home, Indian equity Indian equity benchmarks ended marginally higher on Thursday buoyed by gains in Oil & Gas, Power and Energy related stocks, tracking a rally in global peers amid Fed rate cut hopes. Renewed optimism over the resumption of India-US trade talks also supported investor sentiment. However, foreign fund outflows and rise in crude oil prices capped the gains. Finally, the BSE Sensex rose 123.58 points or 0.15% to 81,548.73 and the CNX Nifty was up by 32.40 points or 0.13% to 25,005.50. 

Some of the important factors in trade: 

India, US in talks for Free Trade Agreement: Commerce and Industry Minister Piyush Goyal said that India is in 'active dialogue' with the United States for a free trade agreement. He said that negotiations are going on with the European Union as well in the national capital for concluding a trade agreement.

India not replacing US Dollar for trade: Chief Economic Adviser V Anantha Nageswaran said that the country is not pursuing any proposal to replace the US dollar as international currency for global trade. 

GST cut to boost auto sector growth: Industry body SIAM said the recent reduction in GST rates on automobiles will inject fresh growth momentum into the Indian automotive sector, make vehicles more affordable and enable broader access to personal mobility.

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