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Indian equity markets are likely to make cautious start on Friday amid rising tensions between the United States and Iran. Investors may remain cautious amid fund outflows from foreign institutional investors who offloaded equities worth Rs 880.49 crore on Thursday. Investors will also be keeping an eye on the February's manufacturing and services PMI flash data, to be release later in the day. 

Some of the key factors to be watched: 

India-EU FTA to open new avenues for trade, investment: Prime Minister Narendra Modi and his Greek counterpart Kyriakos Mitsotakis have agreed that the recently concluded India-EU FTA will open new avenues for trade and investment between the two countries.

India's agri products, auto exports making greater inroads in EU: The Commerce Ministry in its data has showed that India's exports of agricultural products and automobiles are making greater inroads into European markets, recording healthy growth during April-December 2025. 

India, New Zealand discuss ways to enhance co-operation in horticulture: India and New Zealand have discussed ways to increase collaboration in the horticulture sector, including import of kiwi rootstock into the Indian market. 

India calls for deeper cooperation in R&D, biotech, pharma with Switzerland: India has called for deeper cooperation in research and development (R&D), biotechnology, specialty pharmaceuticals and advanced therapeutics with Switzerland with an aim to further strengthen economic ties between the two countries. 

India to produce permanent magnets this year: Union Coal and Mines Minister G Kishan Reddy has said that India will begin production of Rare Earth Permanent Magnets (REPMs) this year itself, marking a key step towards self-reliance in critical minerals for electric vehicles and renewable energy sectors.

On the global front: The US markets ended in red on Thursday following mixed profit reports from Walmart and other big companies. Asian markets are trading mixed on Friday as escalating tensions in Iran weighed on sentiment, while oil rose to its highest level since August.

Back home, snapping their three-day winning streak, Indian equity benchmarks ended Thursday’s trading session deep in red, following broad-based selling across sectors. Investor sentiment was further weighed down by escalating tensions between the US and Iran. Finally, the BSE Sensex fell 1236.11 points or 1.48% to 82,498.14 and the CNX Nifty was down by 365.00 points or 1.41% to 25,454.35.              

Some of the important factors in trade:

Retail inflation likely to rise to 4.3% in FY27: Crisil in its latest report has said that the Consumer Price Index (CPI) inflation or retail inflation is likely to rise to around 4.3% in fiscal year 2026-27 (FY27) from an estimated 2.5% for FY26. 

India eyes energy sources diversification; keens to import premium coking coal from US: Commerce and Industry Minister Piyush Goyal has said that India is looking to diversify its sources of crude oil and coking coal and is keen to import premium-quality coking coal from the United States (US). 

India, Canada FTA talks to finalize next month: The report has said that India and Canada are expected to finalise terms of reference for initiating talks for a free trade agreement (FTA) during the visit of Canadian Prime Minister Mark Carney to India next month.

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