GST Council meet, macroeconomic data to drive stock markets this week: Analysts

New Delhi: Equity markets this week would keenly track the upcoming GST Council meeting, macroeconomic data announcements and trading activity of foreign investors for further movement, analysts said.

Moreover, developments related to tariff negotiations, global market trends and auto sales data would also drive investors’ sentiment.

India’s economy grew 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles.

“This week will be event-heavy, marking the start of a new month with several high-frequency indicators due for release. Investors will closely track auto sales data, along with HSBC manufacturing, services, and composite PMIs.

“Additionally, the GST Council meeting will be a key focus, with expectations building around an accelerated implementation of proposed reforms. These events are likely to set the near-term tone for risk sentiment,” Ajit Mishra -- SVP, Research, Religare Broking Ltd, said.

Tariff-related uncertainty dominated market sentiment last week, curbing risk appetite, an expert said.

“This week presents a challenging environment for Indian equities, as markets grapple with significant headwinds from the recently implemented 50 per cent US tariffs on Indian goods, which took effect on August 27. FIIs have turned net sellers, while Domestic Institutional Investors (DIIs) have provided strong support.

“The market’s trajectory will largely depend on clarity regarding tariff negotiations and upcoming domestic policy measures, including potential GST rationalisation discussions,” Puneet Singhania, Director at Master Trust Group, said.