Indian Stock Market Set for Positive Start
The Indian stock market is poised for a positive start as the benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday. This optimistic outlook follows the recent GST Council Meeting, which approved significant GST rate cuts on 396 items. Such reforms are anticipated to provide a boost to various sectors, enhancing the overall economic sentiment.
On Wednesday, Indian markets closed positively, with banking and metal stocks driving gains. The NSE Nifty rose by 135.45 points, or 0.55%, ending at 24,715.05, while the BSE Sensex climbed 409.83 points, or 0.51%, to close at 80,567.71. This rally is attributed to optimism surrounding the GST Council meeting, where many goods were moved to lower GST categories, benefiting sectors like automobiles, hotels, and consumer durables.
Asian markets followed suit, buoyed by a tech rally on Wall Street. Japan’s Nikkei 225 gained 0.57%, and South Korea's Kospi climbed 0.45%. The Gift Nifty was trading around 24,960, indicating a positive start for Indian indices. Investors are closely monitoring developments from the GST Council, with expectations of rationalized tax rates driving market movements.
Finance Minister Nirmala Sitharaman announced major GST reforms, including a streamlined structure reducing the number of tax slabs from four to two—5% and 18%. Special rates for luxury items have also been proposed. This proactive approach aims to simplify the tax structure and stimulate economic growth.
Despite positive domestic cues, Foreign Institutional Investors (FIIs) continued to sell, with outflows of Rs 1,159 crore on Tuesday. This highlights the mixed sentiment among global investors, who are also gauging international market trends. The U.S. market experienced a mixed day, with the S&P 500 and Nasdaq gaining, while the Dow Jones saw a slight dip.
As the Indian market opens, it will likely remain range-bound, influenced by global cues and specific sector developments. The ongoing GST reforms are expected to serve as a catalyst for market movements, keeping investors hopeful about future growth.
