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Indian equity markets are likely to make cautions start on Friday, amid mixed global cues following escalating tensions in the Middle East due to the Israel-Iran war. Traders may also remain watchful ahead of the release of India’s forex reserves data. However, downside may be limited due to ongoing foreign fund inflows by foreign institutional investor (FII).

Some of the key factors to be watched:

RBI issues project finance norms for banks, NBFCs: The Reserve Bank has issued norms to provide a harmonised framework for financing of projects in infrastructure and non-infrastructure sectors by banks, NBFCs and other regulated entities.

Sales of listed non-financial private companies grow 7.1% in Jan-Mar: RBI data showed that sales of listed private non-financial companies registered a 7.1 per cent growth during January-March quarter of 2024-25 as compared to 8 per cent of expansion in the previous quarter and 6.9 per cent during the year.

Goyal says focused on doing trade deals to complement, not compete: Commerce and Industry Minister Piyush Goyal said India is in trade dialogues with countries with whom it doesn’t compete but can complement the economies involved.

Govt imposes curbs on gold imported in certain forms: The government has imposed import curbs on certain colloidal precious metals, with an aim to check the illegal inflow of gold into India in liquid form. Colloidal precious metals are suspensions of gold or silver nanoparticles dispersed in liquid.

Sebi allows IAs, RAs to use liquid mutual funds, overnight funds: Markets regulator Sebi has allowed Investment Advisers (IAs) and Research Analysts (RAs) to use liquid mutual funds and overnight funds as an additional option to the bank fixed deposit to meet their deposit requirements.

On the global front: The U.S. markets were closed on Thursday in observance of Juneteenth National Independence Day 2025. Asian markets are trading mixed on Friday, as traders digested key lending rate decisions from China and monitored rising tensions between Israel and Iran.

Back home, Indian equity benchmarks ended lower for the third straight session on Thursday, in line with weak trends in global markets as the ongoing Iran-Israel conflict continued to weigh on investors' sentiment. Finally, the BSE Sensex fell 82.79 points or 0.10% to 81,361.87 and the CNX Nifty was down by 18.80 points or 0.08% to 24,793.25.  

Some of the important factors in today’s trade:

India’s CPI likely to be above 3.5 per cent in FY26: Rating agency ICRA has said that India's Consumer Price Index (CPI) is expected to be above 3.5 per cent, while the Wholesale Price Index (WPI) will be over 1.8 per cent for the current fiscal (FY26). It said India’s real GDP growth for 2025-26 will be 6.2 per cent, down from 6.5 per cent in the preceding financial year.

India core inflation edging up despite headline decline: Ratings agency CRISIL said that headline inflation based on the CPI fell to 2.8 per cent in May, 2025, which is a good omen for the economy. A decline in food inflation is pulling down the headline retail inflation, but core inflation (excluding food and fuel) is edging up. 

India emerging as prime destination for data centre projects, chip manufacturing: Moody's Analytics in its latest report has said that the developed and emerging economies in East and Southeast Asia are key targets for AI investments, with India, Singapore and Malaysia rapidly establishing themselves as prime destinations for data centre projects or chip manufacturing.

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