Benchmarks likely to make gap-down opening on Friday

Indian equity markets are likely to make gap-down opening on Friday amid surging crude oil prices and escalating geopolitical tensions in West Asia. Additionally, traders may remain cautious as Foreign Institutional Investors (FIIs) continued to pare their holdings, with net equity sales of Rs 17.86 crore on August 6, 2026.

Some of the key factors to be watched:

Centre's capex push boosted private sector confidence to take risk, invest: Finance Minister Nirmala Sitharaman said the Centre's capital expenditure push since Covid has boosted the private sector's confidence in the Indian economy, encouraging them to take risks and invest.

Lok Sabha passes taxation bill to promote electronics manufacturing, UPI merchant fees, easier offshore fund norms: Lok Sabha passed the Taxation and other Laws (Amendment) Bill, 2026, through which the government wants to promote domestic electronics manufacturing, attracts foreign funds and modifies the zero-MDR framework on digital payments.

India needs to ease land acquisition process for industries to attract investments: NITI Aayog Vice Chairman Ashok Kumar Lahiri said India needs to ease the process of land acquisition for setting up industries to attract more investments.

Primary steel makers may maintain Rs 11000 per tonne operating profitability in FY27: Crisil Ratings report said primary steel makers are expected to maintain operating profitability of Rs 10,500-11,000 per tonne in the current fiscal despite higher input cost. It said higher global steel prices and the effect of the safeguard duty imposed last year will help keep profitability steady.

Auto stocks will be in watch: The Federation of Automobile Dealers Associations said total automobile retail sales in India grew by 25.89 per cent year-on-year to 25,91,138 units in July, continuing with the demand momentum that set in after rationalisation of GST in the latter part of last year.

Global front: The US markets ended in red on Thursday, amid uncertainty over reopening the Strait of Hormuz. Asian markets are trading mostly in green on Friday ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

Back home, Indian equity benchmarks closed in green in a volatile session on Thursday as hopes for a U.S.-Iran deal to reopen the Strait of Hormuz along with a better-than-expected June-quarter earnings season helped underpin sentiment. However, the newly-launched closing auction session (CAS) continued to create divergence in benchmark indices. Finally, the BSE Sensex rose 373.76 points or 0.48% to 78,954.76 and the CNX Nifty was up by 11.35 points or 0.05% to 24,636.00.   

Some of the important factors in trade: 

Manufacturing firms’ optimism on demand conditions weakens in Q1: The Reserve Bank of India (RBI) in its latest report has stated that manufacturing firms turned less optimistic about demand conditions during the first quarter of FY27, with sentiments on production, order books, capacity utilisation and exports weakening amid the ongoing conflict in West Asia.

Rural economy, agriculture sector gain resilience over years: Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that the rural economy and the agriculture sector have become more resilient over the years, supported by the growth of allied activities, expanded irrigation, greater farm mechanisation, and improved crop varieties. 

Jaishankar calls Africa key partner and priority for India: External Affairs Minister S Jaishankar has said that Africa is a key partner and a priority for India. He asserted that the continent must be given its due place whether one speaks of a multipolar world order or of a reformed multilateralism.