Benchmarks likely to make negative start on Friday

Indian equity markets are likely to make negative start on Friday, as some cautiousness may come after foreign institutional investors (FIIs) turned net sellers, offloading equities worth Rs 1,025.20 crore on Thursday. Besides, IT stocks will be in focus after Accenture’s softer revenue guidance clouded the sector’s growth outlook. 

Some of the key factors to be watched:

Modi, Trump direct officials to swiftly finalise trade pact: Foreign Secretary Vikram Misri said that Trade was a major subject of discussion between Prime Minister Narendra Modi and US President Donald Trump, with both leaders directing their negotiators to finalise the proposed trade pact at the earliest

Net income tax collection grows 15% to over Rs 5.21 lakh crore till Jun 17: The government data showed that Net income tax collection grew 14.64 per cent to over Rs 5.21 lakh crore between April 1 and June 17.

Peace in West Asia expected to boost order book of Indian exporters: Federation of Indian Export Organisations (FIEO) said that restoration of peace in the West Asian region is expected to revive the order books of Indian exporters and reduce input costs, as the US-Iran war has severely disrupted the movement of consignments.

India's exports to BRICS nations could reach $200 billion by 2030: Associated Chambers of Commerce and Industry of India (Assocham) said that India has the potential to increase exports to $200 billion to BRICS countries by 2030 from $96 billion in the last fiscal year.

Banking system liquidity surplus falls to nearly 3-month low: The Reserve Bank of India (RBI) data showed that Surplus liquidity in the banking system narrowed sharply to its lowest level in nearly three months, weighed down by advance tax outflows, despite liquidity support measures undertaken by RBI. 

Global front: The US markets ended green on Thursday, after the United States and Iran officially signed a preliminary agreement aimed at ending the conflict in the Middle East. Asian markets are trading mostly in green on Friday, tracking the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks extended their gains for the fifth consecutive trading session on Thursday, as sentiments were buoyant after the United States and Iran electronically signed a memorandum of understanding aimed at ending hostilities and creating a framework for negotiations on Iran's nuclear programme. Besides, exchange data showed Foreign Institutional Investors (FIIs) bought equities worth Rs 101.59 crore on Wednesday. Finally, the BSE Sensex rose 254.36 points or 0.33% to 77,409.98 and the CNX Nifty was up by 82.30 points or 0.34% to 24,168.00. 

Some of the important factors in trade:

India, UK free trade pact to formally enter into force on July 15: With an aim to deepen economic ties and strengthen bilateral trade, the free trade agreement between India and the UK will formally enter into force on July 15, 2026, after resolving a steel issue. The move is likely to help double two-way commerce to $100 billion by 2030. 

RBI infuses Rs 72,300 crore into banking system through VRR auctions: Following a decline in surplus liquidity caused by advance tax payments, the Reserve Bank of India (RBI) has infused Rs 72,300 crore transient liquidity through two Variable Rate Repo (VRR) auction into the banking system. 

India's electronics production reaches Rs 13 lakh crore: Union Electronics and IT Minister Ashwini Vaishnaw stated that India’s electronics industry has grown rapidly, with production reaching around Rs 13 lakh crore and emphasized the need to make electronics the country's second-largest export category.