Markets likely to make flat-to-negative start amid mixed global cues

Indian markets are likely to get flat-to-negative start on Friday following mixed cues from global markets. Investors may remain cautious due to the ongoing US-Iran war in the West Asia. Additionally, sentiments may remain downbeat as Foreign Institutional Investors (FIIs) remained net sellers on August 13, 2026, with a net outflow of Rs 510.69 crore. Traders are likely to adopt a wait-and-watch approach ahead of the release of the Wholesale Price Index (WPI) for July. 

Some of the key factors to be watched:

India's exports rise 19.63% to $44.24 billion in July: The country's merchandise exports surged 19.63 per cent to $44.24 billion in July, driven by a jump in shipments of petroleum products, while higher imports pushed the trade deficit to a six-month high of $31.98 billion. 

India, US in regular contact for bilateral trade deal: Commerce Secretary Rajesh Agarwal said India is in regular contact with the US for negotiating the proposed bilateral trade agreement (BTA). He said that both sides are committed to the framework deal that was agreed upon in February. In February, both sides finalised contours for the first phase of the BTA. 

India's aim to become global manufacturing hub by 2047 requires focused strategy: Niti Aayog said India's aspiration to become a global manufacturing hub by 2047 will require a focused strategy that combines scale, competitiveness, innovation, and integration into global value chains. 

India's exports to West Asia rise 8.62% in July: Commerce Secretary Rajesh Agrawal said India's exports to the West Asian region rose by 8.62 per cent year-on-year to $5.7 billion in July as compared to $5.2 billion in the same month last year, despite global uncertainties.

Edible oil industry stocks will be in focus: Solvent Extractors' Association of India (SEA) said India's edible oil imports fell 8 per cent in July to 14.81 lakh tonnes. Edible oil imports stood at 16.16 lakh tonnes in the same month last year.

Global front: US markets ended in green on Thursday, as tame producer price inflation data supported expectations the Federal Reserve will not raise interest rates at its September meeting. Asian markets are trading mostly in red on Friday despite the broadly positive cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended mixed on Thursday as investors remained cautious amid persistent geopolitical tensions in the Middle East, elevated crude oil prices and volatility ahead of the weekly F&O expiry. Also, some concern came as Foreign institutional investors (FIIs) ended a three-session buying streak by selling Indian equities worth Rs 1,002.50 crore on Wednesday. Finally, the BSE Sensex rose 113.61 points or 0.15% to 78,079.96 and the CNX Nifty was down by 40.10 points or 0.16% to 24,395.85. 

Some of the important factors in trade: 

India, SACU sign ToR for negotiations towards preferential trade agreement: Marking a significant step towards strengthening trade and economic engagement between India and the Southern African states, India and the Southern African Customs Union (SACU) have signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA). 

EAC-PM recommends targeted support measures for innovative firms: The Economic Advisory Council to the Prime Minister (EAC-PM) has recommended the intensification of targeted support measures for innovative firms to speed up investment decisions, alongside increased public investment to encourage private investment.

Whole world seeking to increase trade relations with India: Union Minister of Commerce and Industry Piyush Goyal has called for a responsible approach to global trade, urging Indian businesses and citizens to adopt fair trading practices, promote recycling and reuse, and encourage a circular economy while taking Indian products and services to global markets.