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Indian equity benchmarks are likely to open in green tracking firm global cues. Investors will be tracking forex data, PMI Manufacturing and Services Flash data for January, coupled with Q3 earnings from major companies including JSW Seel, DLF, IndiGo, and Godrej Consumer Products among others.

Some of the key factors to be watched:

India is poised for a global leadership position: Union Minister Ashwini Vaishnaw said India is poised for a global leadership position in the area of artificial innovation just like it has proven its mettle in IT services.

Retail inflation for farm and rural workers eased: A labour ministry statement said retail inflation for farm and rural workers eased to 5.01 per cent and 5.05 per cent in December from 5.35 per cent and 5.47 per cent, respectively, in November 2024.

Rupee fell 20% in last 5 yrs, weakest currency in Southeast Asia: Moody's Ratings said the Indian rupee has depreciated by around 5 per cent in the last two years and has fallen by 20 per cent in the last five years making it one of the weakest performing currencies in South and South East Asia.

There will be some buzz in banking sector stocks: Rating agency Fitch said the gross non-performing assets (NPAs) of Indian banks may decline by 40 basis points to 2.4 per cent by March 2025 and a further 20 basis points in the next financial year.

Auto ancillary sector will be in focus: India Ratings and Research (Ind-Ra) has maintained a neutral outlook for the auto ancillary sector for FY26, projecting revenue growth of 8-10 per cent year-on-year (YoY).

On the global front, the US market ended higher on Thursday as investors assessed a mixed bag of corporate earnings and digested comments from President Donald Trump, including a call for cuts in interest rates and oil prices. Asian markets are trading mostly in green on Friday ahead of the Bank of Japan meeting. In Japan, core inflation reached a 16-month high of 3 per cent in December compared to the previous year, strengthening the case for a rate hike by the Bank of Japan. 

Back home, Indian equity markets closed on higher note for second straight day on Thursday, supported by strong buying in IT, Consumer Durables and TECK stocks amid positive trend in global markets. Finally, the BSE Sensex surged 115.39 points or 0.15% to 76,520.38, and the CNX Nifty was up by 50.00 points or 0.22% to 23,205.35.

Some of the important factors for the markets:

Impressive Q3 numbers from Indian Inc. lifted sentiments: Buying was witnessed in IT stocks post better-than-expected Q3 numbers from Zensar Technologies, Coforge and Persistent System. UltraTech Cement also reported good set of numbers.

Foreign fund outflow capped upside: The Foreign institutional investors (FIIs) extended their selling on the 14th day as they offloaded equities worth Rs 4,026 crore on January 22.

Lingering uncertainty over US trade tariff measures: Uncertainty lingers whether the US trade tariff measures will affect global trade, lead to higher inflation, and currencies volatility. 

India emerges as most trusted place: Sentiment were upbeat as Union Minister Ashwini Vaishnaw has said India has emerged as the most trusted place amid disruptions across the world.

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