Indian equity markets are likely to make flat to positive start on Friday, amid positive global market cues. Traders are likely to adopt wait-and-watch approach ahead of release of India’s GDP data for the April-June quarter. Meanwhile, ongoing selling by foreign portfolio investors (FPIs) could dampen markets sentiments.

Some of the key factors to be watched:

Industrial output growth accelerates to 4-month high of 3.5% in July: The government data showed that India's industrial production growth accelerated to a 4-month high of 3.5 per cent in July this year due to good performance of manufacturing sector.

FM assures exporters of full govt support, safeguarding their interests amid US tariffs: Federation of Indian Export Organisations (FIEO) said that Finance Minister Nirmala Sitharaman has assured an exporters' delegation that the government stands firmly with them in this challenging time and is committed to addressing their concerns, while exploring every possible avenue to safeguard their interests amidst high US tariffs.

India hopeful of resuming trade talks with US soon: As per a report, India is hopeful of resuming negotiations with the US on the proposed bilateral trade agreement (BTA), and resolving the issue relating to the steep 50 per cent tariff on Indian goods imposed by Washington will be key to striking the deal.

US tariff hike to moderate India's growth by 0.5%: Former Commerce and Home Secretary G K Pillai said that a steep 50 per cent tariff imposed by the US on shipments from India would have a very small impact on India's economic growth of about 50 basis points if exporters are unable to find alternative markets.

Duty-free cotton imports to strengthen India's position in export markets: The Textile Ministry said that the Centre's decision to extend the import duty exemption on cotton until December 31, 2025 will strengthen India's position in export markets, reviving orders for small and medium enterprises as well as export-oriented units. 

On the global front: The U.S. markets ended in green on Thursday, as report released by Commerce Department showed that the U.S. economy grew by more than previously estimated in the second quarter of 2025. Asian markets are trading mostly in green on Friday, tracking strong cues from US markets overnight. 

Back home, Indian equity benchmarks ended lower for 2nd straight day on Thursday as the additional 25 per cent tariff imposed by US President Donald Trump on India for its purchases of Russian oil came into effect. Besides this, persistent foreign fund outflows also dented investors' sentiment. Finally, the BSE Sensex fell 705.97 points or 0.87% to 80,080.57 and the CNX Nifty was down by 211.15 points or 0.85% to 24,500.90.

Some of the important factors in trade: 

Uncertainties surrounding US tariffs might affect capital expenditure decisions in FY26: Crisil in its latest report has said that uncertainties surrounding the US tariffs might be a new hindrance to capital expenditure decisions in FY26. 

US tariff hikes on India an opportunity for better efficiency, bold reforms: Former Niti Aayog CEO Amitabh Kant said India should view US tariffs as a wake-up call to implement bold and once-in-a-generation reforms and diversify its export markets for long-term growth.

Employment in industries rises 5.92% to 1.95 crore in FY24: Annual Survey of Industries (ASI) data showed that Employment in industries increased by 5.92 per cent to 1.95 crore in 2023-24 from 1.84 crore in 2022-23.