Indian equity benchmarks are expected to open cautiously on Friday, tracking mixed global cues. However, some support may come as Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth RS. 3,239.14 crore on March 20.

Key Market Factors to Watch:

Trump Threatens Reciprocal Tariffs on India: U.S. President Donald Trump has reiterated his stance on imposing reciprocal tariffs starting April 2, which could impact India's exports of agricultural and pharmaceutical goods.

Tax Collection Challenges: The Income Tax Department informed a Parliamentary panel that two-thirds of the RS. 43 lakh crore outstanding tax demand is difficult to collect due to legacy issues, fictitious claims, and automated interest calculations.

Taiwan-India Trade Cooperation: Taiwan's Deputy National Security Adviser Hsu Szu-Chien suggested that Taiwan can help India reduce its reliance on Chinese electronic components through a free trade pact, potentially boosting high-tech investments in India.

Services Sector Export Growth Target: Commerce and Industry Minister Piyush Goyal stated that India’s services sector should aim to exceed merchandise exports next fiscal, targeting RS. 450 billion in exports due to strong growth momentum.

Steel Stocks in Focus: ICRA reported that government safeguard measures are credit positive and could lead to a 50% reduction in India's steel imports in FY26.

Global Market Trends:

U.S. markets closed in the red on Thursday amid economic concerns following the Federal Reserve's policy announcement. Most Asian markets are also trading lower on Friday after the Fed’s dovish outlook and Ukraine’s president signaled a pause in strikes on energy and infrastructure.

Domestic Market Performance:

Indian markets rallied for the fourth straight session on Thursday, with strong sector-wide buying and short-covering on the weekly expiry day.

• BSE Sensex: Up by 899.01 points (1.19%) to 76,348.06
• CNX Nifty: Up by 283.05 points (1.24%) to 23,190.65

Other Market Highlights:

• India’s Economic Strength: The RBI March Bulletin emphasized that India's structural strengths—sound fiscal policies, monetary measures, and digital transformation—are laying a solid foundation for long-term economic growth.
• FII Selling Resumes: FIIs turned net sellers again on Wednesday, offloading RS. 1,096.5 crore worth of equities. In March so far, FIIs have sold RS. 33,869 crore worth of stocks.
• FMCG Sector Outlook: Crisil Ratings projected a slight revenue rebound for the FMCG sector, with growth expected at 6-8% in FY26 due to urban recovery and stable rural demand, compared to 5-6% growth in FY25.