The Indian stock market appears set to extend its uptrend in the coming week, supported by a blend of positive domestic and global factors. Investor sentiment remains optimistic as ongoing trade negotiations between India and the United States continue to bolster market confidence.
Despite persistent geopolitical concerns, market participants have largely brushed them aside, with Foreign Institutional Investors (FIIs) actively infusing capital into domestic equities. Alongside steady inflows from Domestic Institutional Investors (DIIs), this robust institutional participation is helping maintain market resilience and broad-based gains.
Global optimism is further strengthened by the anticipated resolution of key trade talks, particularly between the US and China. These developments are easing worries about potential economic disruptions, paving the way for a more stable investment climate.
On the macroeconomic front, easing crude oil prices and moderating inflation provide additional support, reinforcing expectations of interest rate cuts in India. This favorable environment is boosting confidence in India’s economic growth outlook and encouraging wider participation across sectors.
Domestic Cues:
India's HSBC Composite PMI Flash for May is due on Thursday, 22 May 2025. The HSBC India Composite PMI stood at 59.7 in April 2025, slightly below the flash estimate of 60.0 but above March’s reading of 59.5.
India's HSBC Manufacturing PMI Flash for May is due on Thursday, 22 May 2025. The HSBC India Manufacturing PMI edged up to 58.2 in April 2025 from 58.1 in March, slightly below the flash estimate of 58.4, marking the strongest sector improvement in ten months.
India's HSBC Services PMI Flash for May is due on Thursday, 22 May 2025. The HSBC India Services PMI was revised lower to 58.7 in April 2025, down from the preliminary estimate of 59.1.
India's bank loan growth data for the fortnight ending 9 May 2025 is due on Friday, 23 May 2025. The value of loans in India increased 10.30% in April of 2025 over the same month in the previous year.
India's deposit growth data for the fortnight ending 9 May 2025 is due on Friday, 23 May 2025. Deposit Growth in India increased to 10.20% in the week ending April 25 from 10.10% two weeks before.
India's foreign exchange reserves data for the week ending 16 May 2025 is due on Friday, 23 May 2025. Foreign Exchange Reserves in India decreased to 686060 USD Million in May 2 from 688130 USD Million in the previous week.
Global Cues:
China's industrial production data for April is due on Monday, 19 May 2025. China's industrial production rose by 7.7% yoy in March 2025, accelerating from the 5.9% growth recorded in the January-February period.
China's retail sales data for April is due on Monday, 19 May 2025. China's retail sales increased by 5.9% year-on-year in March 2025, from 4% in the January-February period.
Japan's balance of trade data for April is due on Wednesday, 21 May 2025. Japan's trade surplus increased to JPY 544.1 billion in March 2025 from JPY 349.9 billion in the same month a year earlier, as export growth outpaced imports.
The United States’ existing home sales data for April is due on Thursday, 22 May 2025. Existing home sales in the US slumped by 5.6% from the previous month to a seasonally adjusted annualized rate of 4.02 million units in March of 2025, to mark the sharpest decline in over two years.
Japan's inflation data for April is due on Friday, 23 May 2025. Japan's annual inflation rate edged to 3.6% in March 2025 from 3.7% in the prior month, marking the lowest print since last November.