The Indian stock market is poised for a dynamic week from May 19 to 23, influenced by pivotal global economic data and the ongoing easing of geopolitical tensions between India and Pakistan. Investors will be keenly observing macroeconomic indicators from India, the US, and China, as these could affect market sentiment and central bank policy perspectives, according to Bajaj Broking Research.

In India, focus will be on the HSBC India Manufacturing PMI, slated for release on May 22. This index will provide insights into the manufacturing sector’s health and overall business confidence.

On May 19, China will release essential economic data, including figures on Industrial Production and Retail Sales. These statistics are crucial for gauging China’s economic strength and consumer trends, which have significant implications for global trade.

In the US, the week will kick off with MBA Mortgage Applications data on May 21, shedding light on the housing market’s health. This will be followed by Initial Jobless Claims and the S&P Global US Manufacturing PMI on May 22, both vital for assessing the state of the US job market and industrial activities. The week will conclude with New Home Sales data on May 23, further illuminating the US housing market’s condition. Analysts suggest these updates may offer critical signals regarding economic direction and influence stock market movements.

Meanwhile, Indian stock markets experienced a robust rally this past week, driven by the favorable resolution of tensions with Pakistan and minimal escalation. This geopolitical stability, coupled with reduced tariff concerns, significantly boosted investor confidence. Consequently, the Nifty index achieved its largest single-day gain in recent history, ending the week up by 1,011.80 points, or 4.21 percent. This rally occurred alongside decreased market volatility, with the India VIX, a gauge of market fear, falling by 23.49 percent to 16.55. Throughout the week, the Nifty fluctuated within a 737-point range but maintained its gains and gained additional momentum.

The Department for Promotion of Industry and Internal Trade (DPIIT) has inked a Memorandum of Understanding (MoU) with the Global Energy Alliance for People and Planet (GEAPP) to expand opportunities for clean energy startups in India, as announced by the Ministry of Commerce and Industry on Saturday.

Sanjiv, Joint Secretary at DPIIT, highlighted that this collaboration will aid startups in scaling technologies that push India toward its long-term net-zero goals.

“India’s leadership in climate action relies on a robust entrepreneurial ecosystem. This partnership will unlock significant opportunities for clean energy startups to advance technologies that align with the country’s net-zero objectives,” he stated.

Over the course of this two-year partnership, both organizations aim to foster innovation, sustainability, and entrepreneurship within the clean energy and manufacturing sectors. The initiative will provide support for early-stage climate-tech startups by facilitating access to funding, mentorship, pilot projects, and market connections, with an option to extend the partnership beyond the initial term.

As part of the MoU, GEAPP will introduce the Energy Transitions Innovation Challenge (ENTICE) — a platform offering up to $500,000 in rewards for impactful clean energy solutions. Investment support will be coordinated through partners like Spectrum Impact and Avana Capital.

DPIIT will connect the program to the Startup India network, ensuring it benefits from various government initiatives. Sanjiv emphasized that India’s climate leadership hinges on a strong entrepreneurial foundation, noting that this partnership is a vital step in that direction.

Saurabh Kumar, Vice President – India at GEAPP, referred to the MoU as a significant milestone for driving systemic change. He stated that the combined strengths of GEAPP’s international expertise, DPIIT’s institutional support, and the Startup India network will create new pathways for clean energy innovation in the nation.

The agreement was signed by Dr. Sumeet Jarangal and Saurabh Kumar in the presence of senior officials from both organizations.

Smartphone exports from India have experienced remarkable growth, nearly fivefold to the US and about fourfold to Japan over the past three years. This surge has enabled smartphones to surpass petroleum products and diamonds, becoming India’s leading export, according to government data.

In the fiscal year 2024-25, smartphone exports jumped 55% to USD 24.14 billion, up from USD 15.57 billion in 2023-24 and USD 10.96 billion in 2022-23.

The US, Netherlands, Italy, Japan, and the Czech Republic were the top five markets where India saw the highest growth in smartphone exports last fiscal year.

Notably, exports to the US alone soared from USD 2.16 billion in 2022-23 to USD 5.57 billion in 2023-24, before reaching USD 10.6 billion in 2024-25. Similarly, shipments to Japan increased from USD 120 million in 2022-23 to USD 520 million in FY25.

The sector has established India as a significant global manufacturing and export hub. Exports to the Netherlands rose to USD 2.2 billion in the last fiscal, up from USD 1.07 billion in 2022-23. Shipments to Italy increased to USD 1.26 billion from USD 720 million, while exports to the Czech Republic grew to USD 1.17 billion from USD 650 million.

Recently released government data indicates that India’s merchandise exports grew by 9.03% year-on-year, reaching USD 38.49 billion in April, while imports rose by 19.12% to USD 64.91 billion, resulting in a trade deficit of USD 26.42 billion.

Overall, India’s total exports, including merchandise and services, for April are estimated at USD 73.80 billion, up 12.70% compared to last year, with total imports estimated at USD 82.45 billion, reflecting a growth of 15.72%.