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Indian equity markets are likely to make a positive start on Friday, supported by comments from US President Donald Trump on the India-US trade deal, along with mixed global cues. Additionally, strong inflows from Foreign Institutional Investors (FIIs), may further support market sentiment.

Some of the key factors to be watched:

Export Import Bank of India projects India's merchandise exports to grew 3.3%: The Export Import Bank of India said that it expects a 3.3% growth in the country's overall merchandise exports to $113.7 billion in the June quarter. The non-oil exports are forecast to grow 10.9 per cent to $99.2 billion during the first quarter of the current fiscal year.

India-US trade agreement talks progressing well: Commerce Secretary Sunil Barthwal said that the negotiations for the proposed bilateral trade agreement between India and the US are progressing well. He also said that Indian team will be going to Washington for further discussions.

India's trade deficit widens to $26.42 billion in April: The government data showed that India's exports rose by 9.03% to $38.49 billion in April, while the trade deficit widen to $26.42 billion as compared to $21.54 billion in March.

India's proposal to impose retaliatory duty on US goods to figure in trade talks: India's proposal to impose retaliatory duties on select American products in response to US' tariffs on steel and aluminum tariffs will be figured in the trade talks between the two countries starting May 17. 

India's unemployment rate at 5.1% in April 2025:  The data released by government showed that the rate of unemployment in the country, measured in monthly term for the first time, stood at 5.1% in April this year.

On the global front: The US markets ended mostly in green on Thursday, as traders digested an avalanche of U.S. economic data, including a Labor Department report showing producer prices unexpectedly decreased in the month of April.  Asian markets are trading mixed on Friday, as markets await further developments in trade negotiations as well as progress in the Iran nuclear deal.

Back home, Indian equity benchmarks ended with strong gains on Thursday amid heavy buying by investors and fresh foreign fund inflows into shares. Finally, the BSE Sensex rose 1200.18 points or 1.48% to 82,530.74, and the CNX Nifty was up by 395.20 points or 1.60% to 25,062.10. 

Some of the important factors in trade:

Indian entities committed FDI worth $6 million in Azerbaijan, Turkiye in April: The Reserve Bank of India in its latest data has said that four Indian entities committed foreign direct investments worth nearly $6 million in Azerbaijan and Turkiye, accounting for a small part of the total $6.8 billion overseas investments proposed by Indian companies in April.

Foreign fund inflow: Foreign institutional investors (FIIs) were net buyers to the tune of Rs 931 crore in Indian equities on May 14, while domestic institutional investors (DIIs) also added Rs 316 crore, provisional data from the NSE showed. 

Crude oil drops: Oil prices fell on expectations for a U.S.-Iran nuclear deal that could result in sanctions easing, while a surprise build in U.S. crude oil inventories last week heightened investor concerns about oversupply.   

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