Indian stock outlook: Investors to focus on US tariff talks, FIIs and economic data in coming week

MUMBAI: The investors in the upcoming week will closely monitor key economic data, geopolitical tensions, foreign institutional investor (FII) moves and discussions around the potential trade agreements between the US and its trade partners.

The market analysts say that the week from April 28 to May 2, 2025, is set to bring another series of crucial economic releases that could impact global market dynamics and investor sentiment.

“The upcoming holiday-shortened week also marks the beginning of a new month, making monthly auto sales data a key area of focus for market participants. On the macroeconomic front, investors will closely track the Index of Industrial Production (IIP) data and the HSBC Manufacturing PMI Final data. Meanwhile, geopolitical developments between India and Pakistan will remain on the radar,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

The Bajaj Broking Research team, in its weekly note, added, “In India, attention will be on the Industrial Production (YoY) data for March, scheduled for release on April 28, which will offer insights into the strength of the country’s manufacturing and industrial sectors.”

Last week, the stock markets extended their recovery for yet another week, registering nearly a one cent gain amid a phase of consolidation. After an initial surge, the benchmarks traded in a narrow range through the middle of the week, before witnessing profit-taking in the final session. Ultimately, the Nifty and Sensex ended at 24,039.35 and 79,212.53, respectively, in the previous week.

Global market stability, driven by ongoing discussions between the United States and its trade partners on new trade agreements, helped ease concerns about the impact of tariffs on global commerce.

This, coupled with renewed foreign institutional investor (FII) inflows, bolstered market sentiment.

However, rising geopolitical tensions between India and Pakistan–following a terrorist attack in Kashmir—sparked investor caution and led to some profit-booking, according to Mishra.

Sector-wise, the sharp rebound in the IT sector stood out as a key driver. Additionally, the auto, pharma, and real estate sectors also posted gains.
Conversely, financial and fast-moving consumer goods (FMCG) sectors ended the week in the red. Broader market indices managed to close in the green, delivering gains in the range of 0.83 per cent to 1.73 per cent.

The upcoming holiday-shortened week also marks the beginning of a new month, making monthly auto sales data a key area of focus for market participants.

The market experts added that on the macroeconomic front, investors will closely track the Index of Industrial Production (IIP) data and the HSBC Manufacturing PMI Final data.

Meanwhile, geopolitical developments between India and Pakistan will remain on the radar, as per the experts.

On the corporate earnings front, several prominent companies–including BPCL, IOC, Kotak Mahindra Bank, SBI, Bajaj Finance, TVS Motor, and UltraTech Cement–are set to release their quarterly results. Globally, updates related to tariffs and trade will also be watched closely, the market experts added. (ANI)