Indian equity markets are likely to make negative start on Friday tracking weak global cues amid fears persist as the ongoing war in Iran has not showed any signs of de-escalation yet. Sentiments may remain subdued amid continued outflows by foreign institutional investors (FIIs), as FIIs net sold equities worth nearly Rs 3,752.52 crore on Thursday.

Some of the key factors to be watched: 

US-India trade deal is almost at finish line: US Deputy Secretary of State Christopher Landau has said that the United States will work with India to make sure that its short and long-term energy needs are met, amid concerns over disruptions in flow of crude oil following the crisis in West Asia.

No significant upside to $63/Bbl Brent price estimates for 2026: Fitch Ratings said the $63/bbl estimation for average Brent crude price for 2026 is unlikely to see any significant upside as the Strait of Hormuz closure would be only temporary and global oil market oversupply should limit oil price rises. 

Russia always ready to supply crude oil to India: Russian Ambassador Denis Alipov said Russia has always been open to supplying crude oil to India, amid increasing concerns over spiralling prices of petroleum products in view of the West Asia crisis.

India, Finland discuss boosting cooperation in skill development, workforce mobility: India and Finland have discussed avenues for strengthening cooperation in the areas of skill development, vocational education and workforce mobility at a bilateral meeting between Minister for Skill Development and Entrepreneurship Jayant Chaudhary and Finland's Minister of Employment Matias Marttinen.

Pharma industry staring at Rs 2,500-5,000 crore loss due to West Asia crisis: The Pharmaceuticals Export Promotion Council of India said the domestic pharma industry is staring at a loss ranging between Rs 2,500 crore and Rs 5,000 crore due to the various supply and freight movement disruptions owing to the conflict in the Middle East.

On the global front: The US markets ended in red on Thursday as concerns over the Iran war flared up again with U.S. crude topping $80 per barrel. Asian markets are trading mostly in red on Friday following the broadly negative cues from Wall Street overnight. 

Back home, Indian equity benchmarks ended higher with gains of over a percent on Thursday, in line with a rebound in global equities after recent sharp losses due to the conflict in West Asia. Markets cheered reports of the Iranian Deputy Foreign Minister saying the country is ready to abandon its nuclear program. Finally, the BSE Sensex rose 899.71 points or 1.14% to 80,015.90 and the CNX Nifty was up by 285.40 points or 1.17% to 24,765.90.

Some of the important factors in trade: 

Balanced trade relationship between India, Japan important for long-term sustainability: India said there is significant export potential for domestic firms in sectors such as pharmaceuticals, textiles, agriculture and services in Japan, stressing that a more balanced bilateral trade relationship is crucial for ensuring its long-term sustainability.

Middle East conflict presents several short-term obstacles for Indian economy: An external member of the RBI's rate-setting panel Nagesh Kumar has said that ongoing Middle East conflict presents several short-term obstacles for Indian economy, but it is unlikely to significantly affect the country’s long-term growth prospects.

Middle East crisis may hit trade, LNG-dependent sectors if disruption persists: Crisil Ratings said a prolonged war in the Middle East could adversely affect several Indian sectors with direct trade exposure to the region, including basmati rice, fertilisers, diamond polishing, airlines and travel operators.