Mumbai: This week, Indian stock markets are likely to see movement due to major domestic and global developments. Analysts highlight three main factors: the US H-1B visa fee hike, ongoing trade talks, and GST rate cuts. Investors will also watch trends in global markets.
Impact of US H-1B Fee Hike
The US recently announced an increase in H-1B visa fees to USD 100,000 per year. This move poses challenges for India’s IT sector, worth USD 285 billion, as most H-1B holders are Indian professionals. Experts say the higher cost may affect US clients and reduce demand for Indian tech talent, potentially impacting major IT exporters like TCS, Infosys, and Wipro.
Trade Talks to Influence Sentiment
Commerce and Industry Minister Piyush Goyal will lead a delegation to the US on September 22 for trade talks. Discussions aim to reach a mutually beneficial trade agreement. Last week, officials from the US Trade Representative office visited India, and talks were positive, focusing on early agreement conclusion.
GST Cuts to Boost Consumer Spending
From September 22, the first day of Navaratri, GST rates on around 375 items will be reduced. Prices of everyday items, from kitchen staples and medicines to electronics and automobiles, are expected to fall, giving a direct boost to consumer demand. Analysts say this festive-season relief will support market sentiment.
Other Market Drivers
Investors will also monitor the rupee, crude oil prices, and foreign investor activity. On Friday, FIIs bought equities worth Rs 390.74 crore, indicating steady interest. Globally, US macroeconomic data, including GDP, manufacturing and services PMI, and PCE Price Index, will influence Indian markets.
Festive Season Outlook
Vikram Kasat of PL Capital says the market will watch how GST cuts, evolving consumer demand, and ongoing IPO activity affect equities during the festive season. Last week, the BSE Sensex rose 721 points, while Nifty gained 213 points, showing resilience despite global volatility.
Disclaimer: This article is for informational purposes only. It does not constitute financial advice. Investors should consult a certified financial advisor before making investment decisions. Market conditions and data may change.
