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Indian equity markets are likely to make cautious start on Friday, amid mixed global cues. Traders are likely to remain on the sidelines ahead of the Reserve Bank of India’s (RBI) monetary policy decision and the release of GDP growth data later in the day. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on June 4, 2026, with a net outflow of Rs 4,447.06 crore.

Some of the key factors to be watched:

India, US reaffirm commitment to conclude mutually beneficial trade pact: The commerce ministry said that India and the US have reaffirmed their commitment to conclude a mutually beneficial trade agreement that strengthens bilateral trade and economic ties.

FDI equity inflows rise 18% to $58.84 billion in FY26: The Department for Promotion of Industry and Internal Trade data showing that Foreign Direct Investment (FDI) equity inflows into India rose 18 per cent to $58.84 billion in 2025-26, with investments from the United States more than doubling during the last fiscal year.

India to implement 2-3 FTAs in next six months, 3-4 more in 2027: Commerce and Industry Minister Piyush Goyal said that India will implement at leat 2-3 free trade agreements (FTAs) over the next six months, while another 3-4 such pacts are expected to come into force in 2027.

India, UK unveil new initiatives on critical minerals, maritime security: External Affairs Minister S Jaishankar said that India and the UK are well-positioned to construct a new future-oriented and mutually beneficial partnership on the back of their newly firmed-up comprehensive trade deal and the defence industrial roadmap.

Cement stocks will be in focus: India Ratings and Research report said that Cement demand growth is expected to moderate to mid-single digits in FY27 from about 8 per cent in FY26 amid inflationary pressures and the possibility of an El Nino weather event.

Global front: The US markets ended mostly higher on Thursday, amid de-escalation in the Middle East rise following an Israel-Lebanon ceasefire announcement along with rising optimism on a U.S.-Iran deal over the weekend. Asian markets are trading mostly in red on Friday, following the mixed cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended almost flat in a choppy trade on Thursday, as investors preferred to stay on the sidelines ahead of the RBI's monetary policy decision on Friday. Caution also prevailed in the market amid continuing uncertainty in West Asia and relentless foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,616.56 crore on Wednesday, according to exchange data. Finally, the BSE Sensex rose 13.84 points or 0.02% to 74,360.01 and the CNX Nifty was up by 10.95 points or 0.05% to 23,416.55. 

Some of the important factors in trade:

India’s real GDP to grow by 6.3% in FY27, 6.4% in FY28: The Organisation for Economic Co-operation and Development (OECD) in its latest Economic Outlook report has said that India’s real Gross Domestic Product (GDP) is projected to grow by 6.3% during the fiscal year 2026-27 (FY27) and by 6.4% in FY28. 

India's economic activity continues to show resilience despite global uncertainty: Reserve Bank of India (RBI) Deputy Governor Swaminathan J has said that India's economic activity continues to show remarkable resilience, driven by strong industrial and services activity, broad-based demand, and improving corporate performance, despite geopolitical uncertainties. 

Govt clears ATF price stabilization fund worth Rs 10,000 crore to support Indian airlines: With an aim to provide cushion against challenges posed by West Asia conflict, the government of India has cleared a one-time budgetary support of Rs 10,000 crore for oil marketing companies (OMCs) to provide aviation turbine fuel (ATF) price stabilization to Indian airlines for domestic and international operations.

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