Indian equity markets are likely to make cautious start on Thursday, tracking weak global cues after a stalemate in US-Iran peace talks pushed crude oil prices higher and the US Federal Reserve held interest rates steady. Additionally, sentiments may remain downbeat as foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 2,468.42 crore on April 29. 

Some of the key factors to be watched:

Exports see healthy rise in April so far despite challenges in West Asia: Commerce and Industry Minister Piyush Goyal said India’s exports have shown a healthy increase during the first three weeks of April so far despite challenges due to the ongoing West Asia crisis.

West Asia conflict raises inflation risks; India's domestic strength offers cushion: The Finance Ministry’s report said the ongoing conflict in West Asia poses a significant supply-side shock with rising risks to inflation, trade and financial flows, though India’s strong domestic demand, policy buffers, resilient financial system and continued public investment are expected to provide a measure of insulation to the economy.

Bank credit growth slows to 15% in first half of April: The Reserve Bank of India (RBI) said bank credit growth slowed to 15 per cent in the fortnight ended April 15, 2026. During the reporting period, overall credit contracted by 2.06 per cent or Rs 4.51 lakh crore.

ADB cuts growth outlook of Asia to 4.7% as West Asia disruptions deepen: The Asian Development Bank (ADB) has downgraded its 2026 economic growth outlook to 4.7 per cent from 5.1 per cent earlier for Asia and the Pacific, as prolonged West Asia disruptions are fuelling energy prices and tightening financial conditions across the region. 

Airline stocks will be in watch: The Directorate General of Civil Aviation (DGCA) in its data showed Indian airlines carried more than 4.37 crore passengers on domestic routes in the first three months of 2026, marking a marginal increase over the year-ago period. 

Global front: The US markets ended in mostly red on Wednesday after the Federal Reserve kept its key interest rate unchanged. Asian markets are trading mixed on Thursday tracking overnight weakness in key Wall Street benchmarks.

Back home, Indian equity benchmarks ended higher by over half percent on Wednesday, supported by bargain hunting in FMCG, Realty and TECK stocks amid earnings optimism and a rally in Asian markets. Signs of potential de-escalation in geopolitical tensions also helped equity markets. Also, investors were awaiting cues from the upcoming US Federal Reserve policy decision. Finally, the BSE Sensex rose 609.45 points or 0.79% to 77,496.36 and the CNX Nifty was up by 181.95 points or 0.76% to 24,177.65.

Some of the important factors in trade: 

India-New Zealand FTA set to double India’s engineering exports over next 5 years: After India and New Zealand signed a free trade agreement (FTA), Pankaj Chadha, Chairman of EEPC India, has said that India’s engineering exports to New Zealand are poised to double over the next five years, from $140.5 in 2025-26 million to $280-300 million, as the FTA provides zero-duty market access for all Indian goods.

Goyal to visit Canada in May to accelerate negotiations for proposed FTA: Commerce and Industry Minister Piyush Goyal has said that he will visit Canada in May to accelerate negotiations for a proposed free trade agreement (FTA). On March 2, the two countries launched negotiations for a comprehensive economic partnership agreement (CEPA).

India strengthening position as competitive maritime nation: Shipping Secretary Vijay Kumar has said that India is strengthening its position as competitive maritime nation, driven by policy reforms, infrastructure expansion, and increased private sector engagement.