Indian equity markets are likely to make a flat-to-positive start on Thursday, tracking overnight gains on Wall Street amid hopes of easing tensions in the US-Iran conflict. Further, investors may take support from foreign institutional investors (FIIs), who were net buyers of shares worth Rs 666.15 crore on Wednesday.

Some of the key factors to be watched:

India’s exports drop 7.44% to $38.92 billion in March: The government data showed the country's merchandise exports dropped 7.44 per cent to $38.92 billion in March. Imports too dipped by 6.51 per cent to $59.59 billion in March, reflecting disruptions in major trade routes like the Strait of Hormuz due to the conflict in West Asia. 

India’s unemployment rises to 5.1% in March: The government data showed the unemployment rate (UR) for individuals aged 15 and older rose slightly to 5.1 per cent in March from 4.9 per cent in February this year, mainly due to high joblessness in urban areas.

India-UK trade agreement may come into force next month: Commerce Secretary Rajesh Agrawal said India and the UK Free Trade agreement (FTA), signed in July last year, is likely to come into force from May.

NBFCs' reliance on bank borrowings to increase in FY27: Rating agency Crisil said non-banking finance companies' (NBFCs) reliance on bank borrowings is likely to rise in FY27 due to lower interest rates. 

India, Germany boost defence & energy ties: India and Germany have decided to shore up their cooperation in areas of defence, green hydrogen, renewable energy and critical and emerging technologies amid increasing geopolitical upheavals such as the West Asia crisis. 

On the global front: The US markets ended mostly in green on Wednesday as optimism grew about a deal to end the Iran war with the US ratcheting up pressure on Tehran. Asian markets are trading mostly in green on Thursday tracking overnight gains on Wall Street as hopes of a U.S.-Iran deal grew. 

Back home, Indian equity benchmarks maintained positive momentum throughout the day and surged over one and half per cent on Wednesday following a rally in global markets as crude oil prices fell below the $100 per barrel mark amid hopes of renewed diplomatic engagement between the US and Iran. Finally, the BSE Sensex rose 1263.67 points or 1.64% to 78,111.24 and the CNX Nifty was up by 388.65 points or 1.63% to 24,231.30. 

Some of the important factors in trade:

India’s growth to remain strong at 6.5% in 2027 despite West Asia tensions: Despite escalating tensions in West Asia, the International Monetary Fund (IMF), in its World Economic Outlook (WEO), has projected that India’s economy is likely grow at 6.5 per cent in 2027. 

India's WPI inflation accelerates further to 3.88% in March: India's wholesale price index (WPI) inflation accelerated further in the month of March 2026 at 3.88% as compared to 2.13% in February 2026, driven by firming prices of crude petroleum & natural gas, amid ongoing tensions in West Asia.

Non-financial firms' sales rise in FY25: The Reserve Bank data showed net sales of non-financial private companies increased at a slower pace of 11.4 per cent in 2024-25 as compared to 11.7 per cent in the previous year.