Indian equity markets are likely to make a cautious start on Monday, amid weak global cues. Investors' focus will be on upcoming Q4 earnings from key companies including Power Grid Corporation of India, Bharat Electronics, DLF, and PI Industries. However, strong inflows from Foreign Institutional Investors (FIIs) may provide some support to the markets.

Some of the key factors to be watched:

India's forex reserves hit 7-month high of $690.6 billion: Reserve Bank of India (RBI) data showed that India's foreign exchange reserves (forex) rose $4.553 billion to $690.617 billion in the week that ended on May 9.

India-UK apparel, home textiles trade to double in 5-6 years under FTA: Credit rating agency ICRA said that India's apparel and home textiles trade with the United Kingdom is poised for significant growth, with volumes expected to double over the next five to six years, driven by the recently concluded Free Trade Agreement (FTA) between the two countries.

US remittance tax plan may hit Indian households, rupee: Think tank GTRI said that a proposed 5 per cent US tax on remittances sent abroad by non-citizens is raising alarm in India as it may hit Indian households and the rupee. 

India, EU conclude another round of talks on free trade pact: India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed free trade agreement (FTA) and agreed to reach a deal in two phases.

Oil companies' stocks will be in focus: Care Edge Ratings reported that LPG losses incurred by oil marketing companies (OMCs) are expected to decrease by around 45 per cent in FY26 if crude oil prices remain stable at $65 per barrel.

On the global front: The US markets ended mostly in green on Friday, as traders digested an avalanche of US economic data, including a Labor Department report showing producer prices unexpectedly decreased in the month of April.  Asian markets are trading in mostly in red on Monday, as investors assessed a series of key economic reports from across the region.

Back home, Indian equity benchmarks traded lackluster throughout the day and finally ended marginally lower amid emergence of profit-taking after a sharp rally in the previous trading session.  Finally, the BSE Sensex fell 200.15 points or 0.24% to 82,330.59 and the CNX Nifty was down by 42.30 points or 0.17% to 25,019.80.   

Some of the important factors in trade:

UN revises down India's GDP forecast to 6.3% for 2025: The United Nations (UN) has revised India's economic growth forecast for 2025, down to 6.3 per cent, and despite a projected moderation, the country remains one of the fastest-growing large economies, supported by resilient consumption and government spending.

India-US trade agreement talks progressing well: Commerce Secretary Sunil Barthwal said that the negotiations for the proposed bilateral trade agreement between India and the US are progressing well. Barthwal said that an Indian team will be going to Washington for further discussions.

India's merchandise exports grow by 9% in April 2025: India's merchandise exports rose by 9.03 per cent to $38.49 billion in April 2025 as compared to $35.30 billion in same month last year, the highest in six months, driven by healthy growth in sectors such as electronics and engineering goods.