Benchmarks likely to get cautious start amid weak in global cues

Indian equity benchmarks are likely to get a cautious start on Friday tracking weakness in global peers. However, some respite may come later in the day amid several industry bodies expressing optimism over India’s growth prospects.

Some of the key factors to be watched:

India to remain fastest-growing major economy over next two years: The World Bank maintained its growth forecast for India at 6.7 per cent for FY26, reaffirming the nation’s position as the fastest-growing major economy over the next two years.

Indian economy to clock growth rate of 6.5-6.9% in FY26: Federation of Indian Chambers of Commerce and Industry (FICCI) has projected the Indian economy to clock a growth rate of 6.5-6.9 per cent in FY26, driven by easing inflationary pressures, a continuing thrust on capital expenditure, and consumer spending gaining momentum.

India, Singapore strengthen ties in advanced manufacturing, semiconductors: Singapore President Tharman Shanmugaratnam said India and Singapore are cooperating in critical sectors like advanced manufacturing and semiconductors as the relations are on a new trajectory of growth.

ICRA revises forecast of road execution by MoRTH: ICRA has revised its forecast of road execution by the Ministry of Road Transport and Highways (MoRTH) in the financial year 2025 to 10,000-10,500 kilometres (km) from its earlier estimate of 12,500-13,000 km.

On the global front, the US markets ended lower on Thursday as a jump in the prior session cooled, while investors eyed the most recent corporate earnings and gauged economic data to determine the path of Federal Reserve rate cuts. Asian markets are trading mixed on Friday as investors awaited key economic data from China. 

Back home, Indian equity benchmarks ended on a positive note, extending the winning run for third consecutive session on Thursday, helped by a rally in global markets after lower-than-expected consumer inflation in the US ignited hopes of more rate cuts by the Federal Reserve. Finally, the BSE Sensex rose 318.74 points or 0.42% to 77,042.82, and the CNX Nifty was up by 98.60 points or 0.42% to 23,311.80.

Some of the important factors for the markets:

India poised to become world's 4th largest economy by 2026: Industry body PHDCCI said India is poised to become the fourth-largest economy in the world by 2026, overtaking Japan. 

Global economic conditions to weaken in 2025, India’s strong growth continues: The World Economic Forum (WEF) in its report said a majority of chief economists worldwide expect weaker global economic conditions in 2025 but India is likely to maintain a strong growth despite signs of some momentum being lost. 

Falling US Treasury yield further boosted investor sentiments: The 10-year Treasury yield dropped after data showing a slowdown in the annual rate of core consumer prices growth in the U.S. in December helped ease concerns about US Fed's interest rate trajectory.