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Indian equity markets are likely to make a positive start on Monday, tracking strong global markets cues and sustained FII inflows. Additionally, traders will keep a close watch on upcoming quarterly results from key companies such as Mahindra & Mahindra (M&M), Indian Hotels Company, and Coforge. However, some volatility may arise due to intensified geopolitical tensions between India and Pakistan.

Some of the key factors to be watched:

India's forex reserve rises for 8th straight week: Reserve Bank of India (RBI) said that India's foreign exchange reserves rose $1.983 billion to $688.129 billion in the week that ended on April 25, extending gains for the eight straight week.

India's economy is in good shape despite challenging global environment: Chief Economic Advisor (CEA) Dr V Anantha Nageswaran expressed confidence in the economy's resilience and said India's economy is in good shape despite the challenging global environment.

United States aims to reshape India's trade policies: Think tank GTRI said that the US is expected to push for sweeping changes in India's policies, ranging from tariff reductions to regulatory overhauls, that could benefit American firms and exporters, under the proposed bilateral trade agreement with India.

Commerce Ministry warns industry against transhipment to US: The Commerce Ministry is urging Indian exporters to adhere strictly to US rules of origin to prevent transhipment, which could lead to higher duties. The ministry is working to clarify value addition norms for exporters.

Angolan President invites Indian businesses to explore export opportunities: Angolan President Joao Manuel Goncalves Lourenco invited Indian businesses to explore opportunities that can place the African nation at the centre of their export strategies, highlighting areas for mutual cooperation, including agriculture, pharmaceutical and renewable energy.

On the global front: The US markets ended in green on Friday after Labor Department said that non-farm payroll employment shot up by 177,000 jobs in April compared to expectations for an increase of about 130,000 jobs.  Asian markets are trading mixed on Monday in thin trading.

Back home, Indian equity benchmarks, after a sharp rally in intra-day trade, trimmed most of their gains and settled marginally higher on Friday as traders awaited the U.S. non-farm payrolls report for more cues on the Federal Reserve's policy path. Finally, the BSE Sensex rose 259.75 points or 0.32% to 80,501.99, and the CNX Nifty was up by 12.50 points or 0.05% to 24,346.70.                     

Some of the important factors in trade:

RBI rate cuts to impact key profitability indicator of banks in FY26: Crisil Ratings has said that the Reserve Bank of India’s rate cuts will lead to an up to 0.20 per cent slip in return on assets (RoA), a key profitability indicator, for banks in FY26. 

Sustain foreign fund inflows: As per provisional NSE data, on April 30, foreign institutional investors (FIIs) extended their buying streak to an eleventh straight session, purchasing Indian equities worth Rs 50 crore.  

Growth momentum in Indian manufacturing sector improves in April: The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) edged up marginally to 58.2 in April from 58.1 in March, marking the strongest improvement in the sector's health in ten months.

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