The Indian stock market faced a downturn as key indices, the Sensex and Nifty 50, concluded a three-day winning streak on Friday. The Sensex closed at 82,626.23, marking a loss of 388 points or 0.47 percent, while the Nifty 50 fell by 97 points, settling at 25,327.05, a decline of 0.38 percent. Among broader market segments, the BSE Midcap index saw a slight dip of 0.09 percent, whereas the Smallcap index managed a small gain of 0.16 percent.
Market analysts attributed the decline to profit-taking among investors after recent gains, particularly in the absence of significant positive developments. With major financial events now concluded, investor attention is expected to shift towards sectors likely to benefit from the newly announced Goods and Services Tax (GST) reforms as the festive season approaches. Additionally, any shifts in foreign institutional investors’ (FIIs) strategy in the cash market, particularly following the recent Federal Reserve rate cut, will also be closely monitored.
Several key factors are anticipated to influence the market next week:
-
Trump’s H-1B Visa Fee Hike: President Donald Trump introduced a new fee for H-1B visas aimed at high-skilled workers, mandating companies to pay $100,000 per visa. This change is expected to significantly impact the technology sector, which heavily relies on foreign talent from countries like India and China. The fee will take effect on September 21.
-
GST Revamp: Starting September 22, a major restructuring of the GST framework is set to begin, moving towards a simplified two-tier tax structure of either 5 percent or 18 percent for most goods and services. This overhaul follows recommendations from the recent GST Council meeting led by Union Finance Minister Nirmala Sitharaman.
-
India-US Trade Negotiations: Union Commerce Minister Piyush Goyal is scheduled to lead a delegation to the U.S. on September 22, aimed at advancing India-US trade discussions. This visit follows dialogue in New Delhi concerning a proposed bilateral trade agreement.
-
FII Activity: On September 19, FIIs were net buyers in the Indian equity markets, purchasing ₹390 crore worth of shares. Domestic institutional investors (DIIs) also continued to show strong buying interest, netting purchases amounting to ₹2,105 crore.
-
Gold Prices: Gold prices rebounded on Friday, breaking a three-day losing trend with a rise of ₹572 to reach ₹1,09,624 per 10 grams, driven by value buying and positive global cues following the Federal Reserve’s rate cut. On the Multi Commodity Exchange, October gold futures increased by 0.52 percent, while global gold futures also saw gains.
As the market gears up for the upcoming week, investors, analysts, and market watchers will be keenly observing these developments and their potential impact on trading dynamics moving forward. This period marks an important junction for both domestic and international investors, highlighting the interconnectedness of economic policies and market responses.
