The upcoming week is expected to be crucial for the Indian stock markets, as investors will keep an eye on the upcoming GST Council meeting, auto sales data, GST collection figures and updates on US tariffs. The GST Council is scheduled to meet on September 3-4 to discuss potential tax cuts. Also, auto sales data will start coming in from Monday, which will provide important information about the health of the economy.
Higher vehicle sales are generally considered a sign of strong economic performance.
The market may also react on Monday to the first quarter GDP data released on Friday. India’s GDP growth in the first quarter of FY 2026 exceeded expectations at 7.8 percent.
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Globally, any comments from the US Federal Reserve on a possible interest rate cut will be closely watched as this could impact market sentiment.
Vinod Nair, Head of Research at Geojit Financial Services, said the first quarter GDP data highlights the strength of the Indian economy, providing a “buffer zone” against global volatility.
“A resolution on tariffs could boost market sentiment, though there is still a possibility of the 25 percent tariff staying in place,” he noted.
Nair said investors will also keep a close eye on upcoming domestic and US macroeconomic indicators, including PMI data, jobless claims, wages data and unemployment numbers.
Domestic markets closed in the red last week. The Nifty fell 443.25 points or 1.78 percent to close at 24,426.85, while the Sensex fell 1,497.20 points or 1.84 percent to close at 79,809.65.
Midcap and smallcap stocks also witnessed a sharp decline. The Nifty Midcap 100 closed at 55,727.40, down 1,902.35 points or 3.30 per cent, while the Nifty Smallcap 100 closed at 17,227, down 692.50 points or 3.86 per cent.
On the sectoral front, PSU Banks (-3.46 per cent), Financial Services (-2.85 per cent), Realty (-4.28 per cent), Energy (-2.52 per cent), Metals (-2.35 per cent) and PSE (-2.84 per cent) closed with losses. The only gainer was the PSU index, which closed up 0.73 per cent.
With IANS inputs
