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Indian equity benchmarks are likely to get cautious start on Friday, amid mixed global cues. However, some support may come as foreign institutional investors (FIIs) turned net buyers. The Foreign institutional investors (FIIs) bought equities worth Rs 3,239.14 crore on March 20.

Some of the key factors to be watched:

Trump reiterated his threat to impose reciprocal US tariffs starting April 02: U.S. President Donald Trump has said India will face reciprocal tariffs, a move likely to hurt India's exports of agricultural and pharmaceutical goods.

Two-third of Rs 43 lakh crore tax demand difficult to collect: The Income Tax Department has informed a Parliamentary panel that two-thirds of the Rs 43 lakh crore outstanding tax demand is difficult to collect, with a lot of it being fictitious. A legacy issue and accumulation from the mid-90s, automated interest calculations worsen the arrears. 

Taiwan to support India reduce reliance on China: Taiwan can aid India in reducing its reliance on Chinese electronic components through a free trade pact, suggests deputy national security adviser Hsu Szu-Chien. A trade deal would encourage Taiwanese investment in India's high-tech sectors, leveraging Taiwan’s technology and India's workforce.

Services sector should aim to exceed merchandise exports next fiscal: Commerce and Industry Minister Piyush Goyal said that India's services exports are registering healthy growth rates and the sector should aspire to reach $450 billion in exports, overtaking merchandise shipments, in the next financial year.

Steel stocks will be in focus: ICRA said that the government’s safeguard measures are credit positive and expected to lead to a 50 per cent reduction in India's steel imports in FY26. 

On the global front: The US markets ended in red on Thursday, amid lingering concerns about the economic outlook following the Federal Reserve's monetary policy announcement on Wednesday. Most of the Asian markets are trading in red on Friday after the U.S. Federal Reserve issued a dovish policy outlook and Ukraine's President said his country is ready to implement a pause in strikes on energy and infrastructure.

Back home, rallying for the fourth straight session, Indian equity benchmarks ended with gains of over a percent on Thursday, powered by robust buying across sectors, coupled with short covering on the weekly expiry day. Finally, the BSE Sensex rose 899.01 points or 1.19% to 76,348.06, and the CNX Nifty was up by 283.05 points or 1.24% to 23,190.65.  

Some of the important factors in trade: 

India’s structural strengths provide strong foundation for growth: RBI March Bulletin said sound fiscal policies, a well-calibrated monetary framework, and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth. 

FII selling resumes: Foreign Institutional Investors (FIIs) turned net sellers of Indian equities on Wednesday after a day as they offloaded stocks worth Rs 1,096.5 crore, according to exchange data.  So far in March, the FIIs have offloaded equities worth Rs 33,869 crore.

FMCG sector stocks remained in focus: Crisil Ratings has said that the Indian FMCG sector is expected to witness a mild revenue rebound of 100 to 200 basis points to 6-8 per cent in fiscal 2026 owed to a gradual recovery in urban and steady rural demand, while in ongoing 2024-25 fiscal the sector is expected to have a modest revenue growth 5-6 per cent as the volume rises 4-6 per cent.  

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