Indian equity markets are expected to open on a cautious note this Friday, amid mixed global cues and rising geopolitical tensions due to the ongoing Israel-Iran conflict. Traders are likely to remain alert ahead of the release of India’s forex reserves data. However, continued foreign fund inflows by Foreign Institutional Investors (FIIs) may help limit the downside.

Key Domestic Developments:

RBI Issues Project Finance Norms:
The Reserve Bank of India has released a harmonised framework for financing infrastructure and non-infrastructure projects. These new guidelines apply to banks, NBFCs, and other regulated financial institutions.

Non-Financial Company Sales Up 7.1% in Q4:
RBI data indicates that sales of listed private non-financial companies grew by 7.1% in the January–March quarter of FY25. This is a slight drop compared to 8% in the previous quarter but higher than 6.9% in the same quarter last year.

India Focusing on Complementary Trade Agreements:
Commerce Minister Piyush Goyal stated that India is engaging in trade deals with nations where mutual economic interests can complement, rather than compete, with each other.

Import Curbs on Certain Gold Forms:
To curb illegal imports of gold in liquid form, the government has imposed restrictions on certain colloidal precious metals, including suspensions of gold or silver nanoparticles.

SEBI Allows Liquid Funds for IAs and RAs:
SEBI has permitted Investment Advisers (IAs) and Research Analysts (RAs) to use liquid and overnight mutual funds, in addition to fixed deposits, to meet deposit norms.

Global Markets Overview:

U.S. markets remained closed on Thursday for Juneteenth National Independence Day 2025. Asian markets are trading mixed as investors react to China's interest rate decisions and escalating Middle East tensions.

Domestic Market Recap:

Indian markets ended lower for the third consecutive session on Thursday, affected by weak global cues. The BSE Sensex declined by 82.79 points or 0.10% to close at RS. 81,361.87, while the CNX Nifty dropped 18.80 points or 0.08% to RS. 24,793.25.

Other Key Highlights for the Day:

ICRA Projects FY26 CPI Above 3.5%:
Rating agency ICRA expects India’s Consumer Price Index (CPI) to remain above 3.5% in FY26, with Wholesale Price Index (WPI) estimated to cross 1.8%. It forecasts real GDP growth at 6.2%, slightly lower than 6.5% in FY25.

CRISIL on Core Inflation:
CRISIL reports headline inflation fell to 2.8% in May 2025, mainly due to easing food prices. However, core inflation (excluding food and fuel) continues to rise, signaling underlying demand-side pressure.

India a Rising Tech Hub:
According to Moody’s Analytics, India is emerging as a major hub for data center projects and chip manufacturing, alongside Singapore and Malaysia, driven by increasing investments in AI and digital infrastructure across Asia.