Indian Stock Market Eyes Global Economic Indicators and US Trade Developments

This week, Indian stock markets are keenly observing the flow of foreign portfolio investments, now net buyers, alongside developments in the India-US trade deal and Q4 earnings of major firms for new directions. Globally, attention is fixed on the outcome of the US Central Bank monetary policy meeting.

In India, the Sensex and Nifty indices achieved the longest weekly winning streak of 2025, buoyed by consistent foreign investments and optimism over an Indo-US trade agreement. Over a holiday-shortened week, the Sensex climbed over 1,100 points or 1.5 percent as exchanges closed for Maharashtra Day on May 1.

Reliance Industries' breakthrough Q4 performance, ranking it as the first Indian firm to surpass Rs 10 lakh crore in total equity, fortified stock indices further. Its shares surged around 7 percent over the week ending Friday. Moreover, foreign portfolio investors returned as net buyers after a three-month hiatus, albeit at a gradual pace.

Bajaj Broking Research emphasized the week's critical nature for global financial markets, citing significant economic events in the US and China. In the US, all eyes are on the FOMC rate decision on May 7, which will reveal any shifts in the Federal Reserve's interest rate policy amidst mixed economic signals and persistent inflationary pressures.

China's crucial data release, starting with Trade Balance and Imports/Exports YoY figures on May 9, will shed light on global demand trends and trade status. These indicators, along with China's CPI and PPI data due on May 10, will offer a comprehensive picture of global economic momentum, potentially influencing investor sentiment and central bank strategies.

Indian stock indices had previously been buoyant following Trump's hiatus on reciprocal tariffs for 90 days, affecting many countries, including India. The tariffs initially spurred a global equity sell-off, and India was no exception, with investor sentiment also dampened by geopolitical tensions from a recent terrorist attack in Pahalgam. Ongoing geopolitical developments with Pakistan following the April terrorist incident will remain under close scrutiny by investors. (ANI)

(With inputs from agencies.)