Indian Stock Market Weekly Outlook: 10 Key Factors to Watch as Markets Eye Positive Start

Gift Nifty signals strong opening; US gains, FPI inflows, Q4 earnings, and easing US-China tensions among top drivers this week.

Mumbai, May 5, 2025:
The Indian stock market is poised for a higher opening on Monday, buoyed by strong global cues and optimism around upcoming earnings and macroeconomic data. The Gift Nifty was trading around 24,510, indicating a premium of over 110 points from Friday’s Nifty futures close.

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Despite Friday’s session ending flat, with the Nifty 50 closing at 24,346.70 and the Sensex at 80,501.99, analysts see this consolidation as healthy, suggesting a continued ‘buy on dips’ strategy in a relatively bullish setup.

🔑 Here are 10 key developments impacting the markets this week:

Also Read: India’s Forex Reserves Climb for Eighth Straight Week, Reach $688.13 Billion

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1. Gift Nifty Signals Positive Open

Gift Nifty’s 110-point premium over the previous close indicates strong sentiment ahead of Monday’s trade.

2. Muted Asia Amid Holidays, Australia Down

Most Asian markets are shut for public holidays. The S&P/ASX 200 fell 0.29%, while the Australian dollar slipped to 0.6439 against the USD.

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3. Wall Street Closes Strong

The S&P 500, Nasdaq, and Dow all logged second consecutive weekly gains. The S&P rose 2.9%, driven by solid economic data and hopes of thawing US-China trade tensions.

4. FPI Inflows Resume

Foreign Portfolio Investors (FPIs) turned net buyers in April, injecting ₹4,223 crore, their first net buying month in three.

5. Q4 Earnings on Radar

Investors are awaiting key quarterly results that could influence broader market sentiment.

6. US Fed Policy Decision Due May 7

Markets are watching the Fed’s upcoming meeting for clarity on rate cut timelines, especially after Trump’s comments on Powell and renewed pressure for rate easing.

7. India-Pakistan Tensions Continue

Geopolitical concerns remain elevated after the Pahalgam terror attack and subsequent Indian economic and diplomatic countermeasures, which could keep markets cautious.

8. Crude Oil Drops Over 3%

Brent crude fell 3.13% to $59.37 and WTI dropped to $56.34 after OPEC decided to increase output, easing inflationary concerns.

9. Forex Reserves Rise

India’s forex reserves increased by $1.98 billion, hitting $688.13 billion, marking an eighth straight weekly gain.

10. US Employment Data

April’s nonfarm payrolls rose by 177,000 (vs 130,000 forecast), while unemployment held steady at 4.2%, reflecting economic resilience but also caution from employers.

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🏷️ Tags:

Stock Market India, Sensex Today, Nifty 50, Gift Nifty, US Fed Policy, FPI Inflows, Crude Oil Prices, India-Pakistan Tensions, Global Market Cues, Q4 Earnings 2025