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Indian equity markets are likely to make a cautious start on Monday, amid weak global cues. Traders are likely to take a cautious approach ahead of the release of the HSBC Manufacturing PMI Final data later in the day. Additionally, markets sentiment is expected to remain subdued due to outflows from Foreign Institutional Investors (FIIs). 

Some of the key factors to be watched:

India's GDP grows at 7.4% in Q4 FY25: The National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its latest data has showed that India’s real GDP growth for the January-March quarter of financial year 2024-25 stood at 7.4 per cent. The growth in Q4FY25 was lower than the 8.4 per cent expansion in the year-ago quarter.

India-EU free trade agreement could be concluded before year end: Commerce and Industry Minister Piyush Goyal said that negotiations for the proposed comprehensive free trade agreement (FTA) between India and the European Union (EU) are progressing at a rapid pace and the deal could be concluded before the year end.

Forex reserves jump $6.99 billion to $692.72 billion: Reserve Bank of India (RBI) said that India's forex reserves jumped by $6.99 billion to $692.72 billion during the week ended May 23.

ADB ready to provide $4.5 billion loan annually to India: Asian Development Bank (ADB) President Masato Kanda said that the multilateral funding agency stands ready to provide up to $4.5 billion sovereign lending to India each year.

Steel and aluminium stocks will be in focus: A private report said that US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, particularly those engaged in value-added and finished steel products and auto-components.

On the global front: The U.S. markets ended mostly in red on Friday, after President Donald Trump accused China of violating the trade agreement reached last month. Asian markets are trading mostly in red on Monday, following the mixed cues from Wall Street.

Back home, Indian equity benchmarks ended lower on Friday, following losses in Metal, Basic Materials and Utilities shares and sluggish trends in Asian markets due to trade uncertainty after a US appeals court temporarily reinstated reciprocal tariffs. Finally, the BSE Sensex fell 182.01 points or 0.22% to 81,451.01 and the CNX Nifty was down by 82.90 points or 0.33% to 24,750.70.    

Some of the important factors in trade:

Steady inflow of foreign funds: Foreign institutional investors (FIIs) purchased equities worth Rs 884.03 crore on a net basis on Thursday, according to exchange data. 

Tariff war creates opportunity for India in some of sectors: Chief Economic Adviser V Anantha Nageswaran has said ongoing tariff war triggered by reciprocal tariff by the Trump Administration provides an opportunity for India in some sectors. He said India actually has a few silver linings which include low energy prices at the moment.

India to remain fastest-growing economy for next 30 years: Highlighting India as an attractive investment destination, Union Minister for Commerce & Industry Piyush Goyal has said that India to remain fastest-growing large economy in the world for next 30 years.

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