Benchmarks likely to make positive start on Friday

Indian equity markets are likely to make a positive start on Friday, tracking mixed global market cues. Investors are likely to take some support as U.S. Treasury yields eased on improved U.S. data and comments from a Federal Reserve official that he still sees a path to interest rate cuts later this year. However, caution may persist due to selling by foreign institutional investors.  

Some of the key factors to be watched:

UK to give non-discriminatory treatment to Indian firms: The UK-India free trade agreement marks a significant step as the UK commits to non-discriminatory treatment for Indian companies in its public procurement, adhering to its Social Value regime.

Omanisation last key issue in conclusion of India-Oman FTA talks: The negotiations for the proposed India-Oman free trade agreement are nearing conclusion with both sides discussing the last issue of the Gulf country's labour-related Omanisation policy, as New Delhi wants the current regime to remain unchanged for its workers. 

Retail investors invested more than FPIs over past two decades: National Stock Exchange (NSE) Managing Director Ashish Kumar Chauhan said that retail investors in India -- either directly or through Mutual Funds -- have held more money than the Foreign Portfolio Investors (FPIs) over the past 20 years.

Piyush Goyal and Howard Lutnick met to discuss a trade agreement: Union Minister of Commerce and Industry Piyush Goyal held a meeting with Howard Lutnick, the United States Secretary of Commerce, to discuss the prospects of a mutually beneficial trade agreement between the two nations.

Foreign Secretary meets Japanese Foreign ministry officials: Foreign Secretary Vikram Misri met Japan's senior foreign ministry officials here and reviewed the salient issues in the multi-dimensional bilateral ties, including defence and security, economic cooperation and people-to-people exchanges.

On the global front: The US markets ended mostly in red on Thursday, as expanding federal deficit weighed on market sentiment. Asian markets are trading mostly in green on Friday, as investors assessed a wave of economic indicators from across the region. 

Back home, Indian equity benchmarks experienced a substantial decline on Thursday and settled with losses of more than half percent, due to selling in Energy, FMCG and Oil & Gas shares amid a global equity rout triggered by surging bond yields and US debt concerns. Finally, the BSE Sensex fell 644.64 points or 0.79% to 80,951.99 and the CNX Nifty was down by 203.75 points or 0.82% to 24,609.70.

Some of the important factors in trade:

India seeking full exemption from additional 26% tariff in interim trade agreement with US: India and the US are likely to announce an interim trade agreement before July 8, with the country seeking full exemption from the additional 26 per cent tariff on domestic goods. 

Rainfall to boost crop production: Agriculture Secretary Devesh Chaturvedi said the recent rainfall following extreme heat conditions across parts of the country has not caused any damage to major crops and is expected to boost summer crop production prospects. 

FPIs turn net buyers: Foreign portfolio investors (FPIs) turned net buyers of Indian equities after two days of selling on Wednesday as they mopped up stocks worth Rs 2,201.79 crore, according to the provisional data from the National Stock Exchange.