New Delhi: Plans for big bang reforms in the GST regime by Diwali, the Putin-Trump summit and S&P upgrading India’s sovereign credit rating are likely to instil optimism in the domestic equity market in the week ahead, analysts said.
Besides, trends in global markets and the trading activity of foreign investors would also impact domestic investors’ sentiment.
Prime Minister Narendra Modi on Friday announced plans for big bang reforms in the GST regime by Diwali, which will bring down prices of everyday items, as his government looks to overhaul the eight-year-old tax structure plagued by compliance issues, evasions and litigation.
“The week ahead is likely to start on a cheerful note, as markets draw optimism from Prime Minister Narendra Modi’s Independence Day address. His statement on a potential GST rate reduction ahead of Diwali has the potential to significantly boost sentiment and lift equities out of the bear grip,” Santosh Meena, Head of Research at Swastika Investmart, said.
Meanwhile, India on Saturday welcomed the summit talks between US President Donald Trump and his Russian counterpart Vladimir Putin in Alaska that ended without a ceasefire deal.