Indian equity markets are expected to open cautiously on Monday, influenced by weak global cues and investor concerns ahead of the HSBC Manufacturing PMI Final data release. Sentiment may remain subdued due to continued outflows from Foreign Institutional Investors (FIIs).

Key Factors to Watch:

India’s GDP Growth at 7.4% in Q4 FY25:
As per the National Statistics Office (NSO), India's real GDP grew 7.4% in the January-March quarter of FY25, slower than the 8.4% growth recorded in the same quarter last year.

India-EU Free Trade Agreement Nearing Completion:
Commerce and Industry Minister Piyush Goyal stated that the comprehensive Free Trade Agreement (FTA) with the European Union is progressing rapidly and could be finalized before the end of 2025.

Forex Reserves Surge by $6.99 Billion:
According to the Reserve Bank of India (RBI), India’s forex reserves rose by $6.99 billion, reaching a total of $692.72 billion for the week ended May 23.

ADB Offers Annual RS. 4.5 Billion Loan to India:
Asian Development Bank (ADB) President Masato Kanda confirmed that the agency is ready to provide sovereign lending of up to RS. 4.5 billion annually to India.

Steel & Aluminium Stocks in Focus:
A private report highlighted that former US President Donald Trump’s move to double tariffs on imported steel and aluminium may impact Indian exporters, especially in the value-added and auto-component sectors.

Global Market Overview:

US markets closed mostly in red on Friday, following President Trump’s accusations that China violated a recently signed trade deal. Asian markets followed suit, trading largely in red on Monday due to the mixed Wall Street cues.

Domestic Market Recap:

On Friday, Indian equity indices ended in the red, dragged by losses in Metal, Basic Materials, and Utilities sectors. Global trade tensions and weak Asian trends further pressured the markets. The BSE Sensex declined by 182.01 points or 0.22% to close at 81,451.01, while the CNX Nifty fell by 82.90 points or 0.33% to settle at 24,750.70.

Other Notable Developments:

• FIIs Purchase RS. 884.03 Crore in Equities:
  Despite overall outflows, FIIs recorded net equity purchases worth RS. 884.03 crore on Thursday.

• Tariff War Could Benefit India:
  Chief Economic Adviser V. Anantha Nageswaran noted that the ongoing US tariff war may open up opportunities for India in select sectors, especially given the current low energy prices.

• India Poised to Be Fastest-Growing Economy for 30 Years:
  Commerce Minister Piyush Goyal projected that India will remain the world’s fastest-growing large economy for the next three decades, underlining its appeal as a global investment hub.