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Indian equity markets are likely to make a cautious start on Friday, amid mixed global cues. Traders are likely to adopt a wait-and-watch approach ahead of the Reserve Bank of India's (RBI) monetary policy decision later in the day, with the central bank is widely expected to cut interest rates by 25 basis points for the third consecutive time. However, market sentiments may be downbeat by outflows from Foreign Institutional Investors (FIIs).  

Some of the key factors to be watched:

Goyal holds 3 meetings in 35 days with EU trade commissioner: Commerce and Industry Minister Piyush Goyal has held three meetings within a short span of 35 days with the European Commissioner for Trade Maros Sefcovic with an aim to give an impetus to the reposed negotiations for a free trade agreement.

India-Kyrgyz Bilateral Investment Treaty comes into force: Finance Minister Nirmala Sitharaman and Kyrgyz Foreign Affairs Minister Zheenbek Kulubaev Moldokanovich have signed a protocol for enforcement of a bilateral investment treaty to foster bilateral economic relations and encourage cross-border investments between the two nations.

Jaishankar meets foreign ministers of four Central Asian countries: External Affairs Minister S Jaishankar met his counterparts from Turkmenistan, Kazakhstan, Tajikistan and the Kyrgyz Republic and discussed ways to further boost India's cooperation with these Central Asian countries. The issue of terrorism also figured in their discussions.

Goyal proposes developing industrial enclave for Italian businesses in India: Commerce and Industry Minister Piyush Goyal has proposed to develop an industrial conclave for Italian businesses in India to promote investments. He also added Italian companies can consider setting up manufacturing units and offices in those enclaves.

India commits $20 billion for maritime infrastructure development: Union Minister Sarbananda Sonowal said India has committed $20 billion for infrastructure development, with a focus on enhancing multimodal logistics, port connectivity and trade facilitation.

On the global front: The U.S. markets ended in red on Thursday, after President Donald Trump confirmed in a post on Truth Social that he had an approximately 90-minute phone call with Chinese President Xi Jinping. Asian markets are trading mixed on Friday, ahead of the U.S. Labour Department's closely watched monthly jobs report due later in the day.

Back home, Indian equity benchmarks continued their gaining momentum for the second consecutive day and ended with gains of over half percent on Thursday driven by buying in blue-chip stocks Eternal, Trent and Power Grid Corporation amid fresh foreign fund inflows and firm global market trends. Finally, the BSE Sensex rose 443.79 points or 0.55% to 81,442.04 and the CNX Nifty was up by 130.70 points or 0.53% to 24,750.90.  

Some of the important factors in trade:

RBI policy decision in focus: The Reserve Bank's rate-setting panel started its three-day brainstorming on monetary policy as expectations are high of a 25 bps or even a jumbo 50 bps rate cut to fuel economic growth amid uncertainties created by Trump's tariff moves. The decision of the Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Friday.

Finance Minister to review state of the economy at FSDC meet: Finance Minister Nirmala Sitharaman is all set to review the state of the economy at a meeting of the Financial Stability and Development Council (FSDC) on June 10, amid global uncertainties. All financial sector regulators, including RBI Governor Sanjay Malhotra, will attend this 29th meeting of the high-level panel.

India can help French businesses become more competitive in manufacturing: Commerce and Industry Minister Piyush Goyal has said that India can help French businesses become more competitive in manufacturing to tap global markets. He said this could be a shared mission where France and India collaborate closely to strengthen bilateral economic ties.

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