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Key Points

The upcoming week promises significant market dynamics with the implementation of GST 2.0 and its potential consumer benefits. US policy changes, including H-1B visa fee adjustments, are expected to impact the technology sector substantially. Ongoing trade negotiations between India and the United States could further influence investor sentiment. Domestic institutional investors remain optimistic, continuing to inject capital into the market despite modest foreign institutional investor outflows.

Key Points: GST 2.0 and H-1B Visa Changes Impact India Market Outlook

  • GST framework reduced to two tax slabs of 5% and 18%
  • H-1B visa fees increased to $100,000 for new applications
  • US trade delegation in India for ongoing negotiations
  • FII outflows lowest in weeks at Rs 1,327.38 crore
2 min read

GST 2.0 rollout, H-1B visa fee hike and India-US trade talks to drive market sentiment next week

Key developments in GST reforms, US visa policies, and trade talks set to drive Indian market sentiment and investor expectations

"Discussions are progressing in a constructive manner - Unnamed US-India Trade Delegation Source"

Mumbai, Sep 21

The coming week will be crucial for Indian equities as key global and domestic developments such as the rollout of GST 2.0, the hike in H-1B visa fees, updates on the India-US trade deal, along with FII activity, are expected to guide market momentum.

From September 22, the government will implement a new framework under GST 2.0.

The existing four-rate structure of 5, 12, 18 and 28 per cent will be reduced to two slabs -- 5 per cent and 18 per cent.

Taxes on several goods have also been cut, which will benefit consumers immediately.

Meanwhile, US President Donald Trump has announced a sharp increase in the H-1B visa fee to $100,000.

A large number of Indians are employed in the US on H-1B visas, and the move is expected to have a significant impact on the technology sector.

However, the Trump administration has clarified that this will be a one-time fee, applicable only to new visa applications.

On the trade front, any positive update on the ongoing India-US negotiations could also influence investor sentiment.

An American delegation is currently in India for talks, with both governments signalling that discussions are progressing in a constructive manner.

The domestic market ended on a strong note last week. The Nifty rose 0.85 per cent to close at 25,327.05, while the Sensex gained 721.53 points, or 0.88 per cent, to settle at 82,626.23.

Among sectoral indices, the Nifty PSU Bank index led the gains with a jump of 4.83 per cent during the week.

Realty stocks surged 4.43 per cent, energy gained 2.31 per cent, PSE advanced 2.19 per cent, and services added 0.95 per cent.

On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 1,327.38 crore, marking the lowest weekly outflow in several weeks.

Domestic institutional investors (DIIs) remained net buyers, pumping in Rs 11,177.37 crore.

- IANS

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Reader Comments

P
Priya S
$100,000 visa fee is absolutely ridiculous! My brother is in the US on H-1B and this will make it impossible for many Indian professionals. This feels targeted at our tech industry 😠
A
Aditya G
The market rally last week was impressive, especially PSU banks performing well. Hope the positive momentum continues with these developments. DIIs showing strong confidence is a good sign!
M
Michael C
As someone working in US-India trade, the negotiations are crucial. Both countries need to find middle ground - India has huge market potential that American companies want to access.
S
Shreya B
While GST simplification is welcome, I hope the government ensures that essential items remain in the 5% category. Price rise affects middle class families the most.
K
Karthik V
Maybe the H-1B fee hike will push Indian companies to create more high-quality jobs within India itself. We have the talent, we need the opportunities here! 🇮🇳
J
Jessica F
The realty sector surge is interesting - could be a good time to consider real estate investments? With GST changes and market momentum, might be worth looking into.

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