Equity markets eye GST Council meeting, macro-data for trend cues
What's the story
Equity markets are expected to closely follow the upcoming Goods and Services Tax (GST) Council meeting and macroeconomic data releases next week. Analysts say these factors, along with foreign investors' trading activity, will play a major role in determining market trends. Other elements such as tariff negotiations, global market trends, and auto sales data will also influence investor sentiment.
Market outlook
India's strong GDP growth could shield it from external challenges
Vinod Nair, Head of Research at Geojit Investments Ltd, said India's strong Q1 GDP growth of 7.8% in April-June could shield it from external challenges. However, fiscal concerns persist amid tariff disputes that threaten key exports such as textiles. The upcoming GST Council meeting on September 3-4 will be crucial for proposed reforms and could significantly impact market sentiment.
Investor focus
GDP data to influence market reaction
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, said markets will react to India's GDP data released after market hours on Friday. The BSE benchmark fell 1,497.2 points or 1.84%, while Nifty declined by 443.25 points or 1.78% last week due to concerns over US tariffs on Indian exports that came into effect during the last week.
Global trends
Auto sales, PMI data to be closely watched
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said next week is important with a lot of domestic and global data releases. He added that investors will pay close attention to auto sales figures and key PMI data. Globally, PMI prints and other major macroeconomic indicators, such as the US non-farm payrolls data, will be in focus.
Tariff impact
FII selling pressure, DII support expected
Puneet Singhania, Director at Master Trust Group, said next week presents a challenging environment for Indian equities due to the recently imposed US tariffs on Indian goods. He added that Foreign Institutional Investors (FIIs) have turned net sellers while Domestic Institutional Investors (DIIs) have provided strong support. The market's trajectory will largely depend on clarity regarding tariff negotiations and upcoming domestic policy measures including potential GST rationalization discussions.