Stock Market This Week: GST Council Meeting, Macroeconomic Data To Drive Indian Markets
Equity markets in India are expected to be driven by the upcoming Goods and Services Tax (GST) Council meeting, macroeconomic data announcements, and trading activity of foreign investors this week, according to analysts.
Key Events to Watch
The GST Council meeting, scheduled for September 3-4, will be a key focus area for investors, with expectations building around an accelerated implementation of proposed reforms. Additionally, markets will closely track auto sales data, along with HSBC manufacturing, services, and composite PMIs.
Macroeconomic Data Releases
India’s economy grew by a stronger-than-expected 7.8% in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles. This week, investors will closely watch the release of high-frequency indicators, including auto sales data and PMI numbers.
Impact of Tariff Negotiations
Developments related to tariff negotiations, global market trends, and auto sales data will also drive investors’ sentiment. A resolution of tariff disputes could act as a key catalyst for market sentiment, according to Vinod Nair, Head of Research, Geojit Investments Ltd.
Rupee-Dollar Trend and Crude Oil Prices
Markets will also track the rupee-dollar trend and movement in crude oil prices, experts noted. The rupee’s movement against the US dollar will be closely watched, as it can impact India’s trade deficit and inflation.
Expert Insights
Ajit Mishra, SVP, Research, Religare Broking Ltd, said, “This week will be event-heavy, marking the start of a new month with several high-frequency indicators due for release. Investors will closely track auto sales data, along with HSBC manufacturing, services, and composite PMIs.”
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “On the domestic front, focus will be on the GST Council meeting scheduled for Sept. 3-4 to discuss the proposed GST reforms. Additionally, markets on Monday would react to India’s GDP data released after market hours on Friday.”
Market Outlook
Last week, the BSE benchmark dropped 1,497.2 points, or 1.84%, and the Nifty declined 443.25 points, or 1.78%. Sentiment was dampened by concerns over the impact of US tariffs on Indian exports that came into effect during the last week.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, “This week will be crucial with a slew of domestic and global data releases. On the domestic front, investors will closely watch auto sales numbers, along with key PMI data. Globally, PMI prints and other major macroeconomic indicators, particularly the US non-farm payrolls data, will remain in focus.”
Challenges Ahead
Tariff-related uncertainty dominated market sentiment last week, curbing risk appetite, an expert said. Puneet Singhania, Director at Master Trust Group, said, “This week presents a challenging environment for Indian equities, as markets grapple with significant headwinds from the recently implemented 50% US tariffs on Indian goods, which took effect on Aug. 27.”
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