Benchmarks likely to make positive start on Friday

Indian equity markets are likely to make positive start on Friday, tracking firm cues from Asian markets. Traders are likely to adopt a wait-and-watch approach ahead of the release of the final HSBC Manufacturing PMI data for December later in the day. However, some cautiousness may come from Foreign Institutional Investors (FIIs), who were net sellers of equities worth Rs 3,268.60 crore.

Some of the key factors to be watched:

Gross GST collections rise 6% to over Rs 1.74 trillion in December 2025: The government data showed that gross GST collections rose 6.1 per cent to over Rs 1.74 lakh crore in December 2025, on slow growth in revenues from domestic sales following the sweeping tax cuts.

CGSE will help exporters to enhance global competitiveness: The Credit Guarantee Scheme for Exporters (CGSE) has been made operational since December 1, 2025, enabling banks and financial institutions (Member Lending Institutions - MLIs) to extend additional financial assistance to Indian exporters during a period of uncertain headwinds. Further, the measure shall diversify export markets and enhance their global competitiveness.

Power consumption up 7% in December: The government data showed that power consumption grew nearly 7 per cent to 138.39 billion units (BU) in December from 129.39 BU a year ago, as the use of heating appliances like geysers and blowers increased on account of severe cold in North India.

Aviation stocks will be in limelight: Price of aviation turbine fuel (ATF), or jet fuel, was reduced by 7.3 per cent, while commercial LPG rate was raised by Rs 111 per cylinder, as state-owned oil marketing companies implemented their monthly price revisions aligned with global fuel benchmarks.

Insurance stocks will be in focus: The Reserve Bank of India has flagged structural pressures in the insurance sector, saying premium growth is being increasingly driven by high-cost distribution-led strategies of insurance companies rather than operating efficiency. 

On the global front: The US markets remained closed on New Year's day. Asian markets were trading mostly in the green on Friday after China's manufacturing activity rebounded in December as output returned to growth amid higher inflows of new work.

Back home, Indian equity benchmarks pared initial gains and ended flat on the first trading session of the calendar year 2026, due to massive selling in ITC stocks after the government imposed higher tax on tobacco products. Foreign fund outflows also diminished the initial enthusiasm. Foreign Institutional Investors offloaded equities worth Rs 3,597.38 crore on Wednesday, according to exchange data. Finally, the BSE Sensex fell 32.00 points or 0.04% to 85,188.60 and the CNX Nifty was up by 16.95 points or 0.06% to 26,146.55.  

Some of the important factors in trade:

New market access support intervention to help MSMEs expand globally: Indian government’s support for exporters is continuing and expanding, as it has been seen with a recent launch of the Market Access Support (MAS) Intervention under the Export Promotion Mission (EPM). 

India’s fiscal deficit reaches 62.3% of target: The government data showed the Centre's fiscal deficit at the end of November stood at Rs 9.76 lakh crore, or 62.3 per cent of the annual budget target for 2025-26, compared to 52.5 per cent in the year-ago period.

India-EAEU trade talks expected in February: The report said India and the Russia-led EAEU group are likely to hold the next round of talks for the proposed trade agreement in February. The pact is important as India is looking to diversify its export markets due to high tariffs imposed by the US.