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Indian equity markets are likely to make cautious start on Friday, as investors await the Reserve Bank of India’s interest rate decision and policy guidance. Traders are likely to closely watch Russian President Vladimir Putin’s crucial summit talks with Prime Minister Narendra Modi in Delhi, which will cover trade, defense, economic cooperation, and global security. 

Some of the key factors to be watched:

India for removing trade barriers, boosting exports for more balanced trade with Russia: Commerce and Industry Minister Piyush Goyal said India emphasised on the need to reduce trade barriers, and boost exports to Russia with an aim to bridge the widening trade deficit between the two countries. He also said that there are huge opportunities to expand bilateral trade and there is a need to make it more balanced.

India, Russia hold talks to expand fisheries, meat, dairy trade: The report said that India and Russia held discussions on expanding bilateral trade of fisheries, meat and dairy products as well as address market access issues.

US team likely to visit India next week for trade talks: The private report said that a team of officials from the US is expected to visit India next week for talks on the proposed bilateral trade agreement. The visit is crucial as India and the US are working to finalise the first tranche of the pact.

Ongoing FIIs outflow: Foreign investors net sold shares worth Rs 1,944 on Thursday, while domestic institutional investors net bought shares to the extent of Rs 3,661 crore.

Telecom stocks will be in focus: The Department of Telecommunications has proposed one-way spectrum sharing among telecom operators that will enable service providers to monetise and optimally deploy unused radio waves.

On the global front: The US markets ended mostly in green on Thursday, amid optimism about another interest rate cut by the Federal Reserve next week. Asian markets are trading mostly in red on Friday, following a mixed cues from Wall Street.

Back home, Snapping the four-day losing run, Indian equity benchmarks ended marginally higher on Thursday on buying in IT, TECK and Realty shares. However, the gains remained capped as investors awaited the Reserve Bank of India's interest-rate decision and policy guidance due on Friday for direction. Besides, foreign fund outflows from equities and lingering uncertainty over the Indo-US trade deal, kept investor sentiment fragile. Finally, the BSE Sensex rose 158.51 points or 0.19% to 85,265.32 and the CNX Nifty was up by 47.75 points or 0.18% to 26,033.75.      

Some of the important factors in trade:

Strong political commitment to conclude revamped India-EU FTA by end of 2025: European Union (EU) Ambassador to India Herve Delphin has said that there is strong political commitment from both sides to conclude the revamped India-EU Free Trade Agreement by the end of 2025. 

Government working with clear vision to support India’s economic progress: Highlighting the importance of innovation, quality, design, sustainability and efficiency as key drivers of India’s manufacturing competitiveness, Union Minister of Commerce and Industry Piyush Goyal has said that the Government is working with a clear vision to support the country’s economic progress.

Fitch ups India’s GDP forecast to 7.4% for FY26: Fitch Ratings has raised India's GDP growth forecast for the current fiscal to 7.4 per cent, from 6.9 per cent, on increased consumer spending and improved sentiment boosted by GST reforms. 

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