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Indian markets ended higher with notable gains on Thursday on the back of strong corporate earnings and renewed FII buying. Today, markets are likely to start last trading session of week in red following renewed banking fears on Wall Street overnight. In the US, contagion fears in the regional bank space resurfaced with shares of LA-based bank PacWest Bancorp sliding over 50 per cent overnight.  However, some respite may come later in the day as Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO) reportedly said India's exports of goods and services could touch $900 billion in the current financial year, up from $770 billion in the previous year, keeping resilient despite global headwinds. Foreign fund inflows likely to aid sentiments. Foreign institutional investors (FII) bought shares worth Rs 1,414.73 crore on May 4, provisional data from the National Stock Exchange showed. Some support will come with a private report that Commerce and industry minister Piyush Goyal said he wants to see a greater presence of American aircraft and aerospace major Boeing in India as it has recently received a large order of planes from the Tata group-owned Air India. Traders may take note of a private report that market borrowings by India’s state governments are likely to be lower than the amounts indicated in their budgets, as off-balance sheet liabilities will continue to be adjusted in this fiscal year. Meanwhile, apex exporters body FIEO has also urged the government to support domestic exporters in undertaking overseas marketing initiatives with a view to boost outbound shipments. Automobile industry stocks will be in focus as data shared by the Federation of Automobile Dealers Associations (FADA) said owing to a dip in customer demand for two-wheelers and pre-buying in March, the automobile retail sales in April saw a four per cent decline to 1.72 million units, down from 1.79 million units in April last year. Besides, among top Indian companies set to announce their March quarter results are Britannia, Federal Bank, Marico, Piramal Enterprises, Alembic Pharma, Equitas Small Finance Bank, Tatva Chintan, One 97 Communications or Paytm, Symphony, Adani Power among others.

The US markets ended lower on Thursday on bank contagion worries after PacWest confirmed that it is reviewing strategic options, including a potential sale. Asian markets are trading mostly in red on Friday. Investors will track China's services PMI for April later today.

Back home, Indian equity benchmarks resumed their upward march and ended nearly a percent higher on Thursday amid buying in index majors Bajaj Finance, HDFC and HDFC Bank. After the flat start, key gauges gradually inched higher tracking positive cues from Asian counter parts. Traders took support with provisional data from the National Stock Exchange showing foreign institutional investors (FII) bought shares worth Rs 1,338 crore on May 3, 2023. Domestic sentiments got boost amid a private report stating that India’s exports of goods and services could touch $900 billion in the current financial year, up from $770 billion in the previous year, keeping resilient despite global headwinds. Key gauges extended gains in late afternoon deals, taking support from another private report stating that as many as 163 Indian companies have invested more than $40 billion in the United States so far which has created nearly 425,000 jobs in the country. Adding to the optimism, Union Agriculture Minister Narendra Singh Tomar emphasized that agriculture remains prime pulse of the Indian economy, and said that the agriculture is at the core of the socio-economic development of the country. It accounts for around 19 per cent of the GDP and about two-thirds of the population is dependent on the sector. Traders overlooked report that the Centre has advised states to be prepared for worst situation and ensure adequate availability of seeds for kharif sowing season in case of less rainfall, amid concerns over possible impact of evolving El Nino conditions on monsoon rains. Meanwhile, a Reserve Bank report said India’s green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030. The country aims to achieve net zero emissions target by 2070. Finally, the BSE Sensex rose 555.95 points or 0.91% to 61,749.25 and the CNX Nifty was up by 165.95 points or 0.92% to 18,255.80.

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