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Indian equity markets are likely to make a cautious start on Thursday, amid mixed global cues. Volatility is likely to weigh on market sentiment ahead of the weekly F&O expiry. Additionally, investors sentiments are likely to remain subdued as markets await the key speech by US Federal Reserve Chairman Jerome Powell later in the day.

Some of the key factors to be watched:

Indian entities pledge $6.8 billion overseas FDI in April: The recent Reserve Bank of India’s data showed the Indian companies have proposed $6.8 billion overseas Foreign Direct Investment (FDI) in the month of April.

India's hospitality sector to grow at CAGR of 10.5%: A private report said that the Indian hospitality industry is likely to witness a strong growth trajectory.  The report projects a robust growth for India's hospitality sector, with the market expected to surpass Rs 1.1 trillion in revenue by FY2027, growing at a CAGR of 10.5 per cent.

Indian entities pledge $6 million in FDI in Azerbaijan, Turkiye: Indian entities have pledged nearly $6 million in foreign direct investments (FDI) in Azerbaijan and Turkiye, a small portion of the total $6.8 billion proposed overseas investments in April. This comes amid calls for boycotts of Turkish and Azerbaijani goods and tourism following their condemnation of India's strikes on terror camps in Pakistan.

Foreign fund inflow: Foreign Institutional Investors (FIIs) net bought Indian equities worth Rs 931.80 crore on May 14, 2025.

Defence stocks will be in focus: Defence Minister Rajnath Singh said that India exported defence goods worth Rs 23,622 crore in 2024-25, a 34-fold rise as against just Rs 686 crore in 2013-14.

On the global front: The US markets ended mostly in green on Wednesday ahead of the release of a slew of U.S. economic data on Thursday, including producer prices, retail sales and industrial production. Asian markets are trading mixed on Thursday following recent announcements of trade deals between the US and the UK and China.

Back home, Indian equity benchmarks were choppy in intra-day trades but managed to end in green on Wednesday as retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the RBI to go for another rate cut in the June monetary policy review. Finally, the BSE Sensex rose 182.34 points or 0.22% to 81,330.56, and the CNX Nifty was up by 88.55 points or 0.36% to 24,666.90.              

Some of the important factors in trade:

India's WPI inflation hits one-year low of 0.85% in April: Inflation based on wholesale price index (WPI) in India eased to 0.85% in April 2025 as against 2.05% in March 2025. WPI-based inflation was 1.19% in April last year. 

India's outward FDI surges 90% in April 2025: The Reserve Bank of India (RBI) in its latest report titled ‘Overseas Direct Investment for April 2025’ has showed that India’s outward foreign direct investment (OFDI) commitments rose 89.62% to $6,806.49 million in April 2025 from $3,589.53 million in April 2024. 

India's retaliatory tariff plan likely to strain trade pact talks with US: Global Trade Research Initiative (GTRI) has said that India's proposal to impose retaliatory import duty on certain US products in response to American tariffs on steel and aluminium could cast a shadow over ongoing negotiations for a trade agreement between the two countries.

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