What Will Drive Market Sentiment Next Week? GST 2.0, H-1B Visa Fee Hike, and India-US Trade Talks
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Synopsis
The upcoming week is pivotal for Indian markets with the rollout of GST 2.0, a rise in H-1B visa fees, and vital updates on India-US trade talks. Investors should stay informed as these factors could significantly impact market trends.
Key Takeaways
- GST 2.0 rollout simplifies tax structure.
- H-1B visa fee hike impacts tech sector workers.
- India-US trade talks may boost investor sentiment.
- Nifty and Sensex showed positive growth last week.
- Domestic investors remained active, contrasting with FIIs.
Mumbai, Sep 21 (NationPress) The upcoming week is set to be pivotal for Indian equities as significant global and domestic events unfold. The implementation of GST 2.0, a rise in H-1B visa fees, and developments in the India-US trade agreement are anticipated to shape market movements. Starting from September 22, the government will unveil a new framework under GST 2.0.
This new structure will simplify the existing four-rate system of 5%, 12%, 18%, and 28% down to just two rates: 5% and 18%.
Additionally, taxes on numerous goods will be reduced, providing immediate benefits to consumers.
In a related development, US President Donald Trump has proposed a steep increase in the H-1B visa fee to $100,000.
This decision could heavily impact the technology sector, as many Indians are employed in the US under H-1B visas. However, the administration has specified that this fee will be a one-time charge, applicable solely to new visa applications.
On the trade front, any positive news regarding the ongoing discussions between India and the US could further sway investor sentiment. An American delegation is currently in India for negotiations, with both nations indicating that the talks are progressing positively.
Last week, the domestic market concluded strongly, with the Nifty increasing by 0.85% to close at 25,327.05, while the Sensex rose by 721.53 points, or 0.88%, finishing at 82,626.23.
Evaluating sector performance, the Nifty PSU Bank index led the charge with a remarkable 4.83% growth during the week.
Real estate stocks followed closely, jumping by 4.43%, while energy increased by 2.31%, PSE gained 2.19%, and services saw an uptick of 0.95%.
Institutionally, foreign institutional investors (FIIs) divested equities worth Rs 1,327.38 crore, marking the lowest outflow in several weeks.
Conversely, domestic institutional investors (DIIs) remained net purchasers, injecting Rs 11,177.37 crore into the market.
Point of View
It is essential to recognize the significant implications of these developments on market sentiment. With the implementation of GST 2.0 and changes in visa policies, we must closely monitor how these factors influence investor behavior and the overall economic landscape. Our commitment remains to provide accurate and timely insights to our readers.
NationPress
21/09/2025
Frequently Asked Questions
What is GST 2.0?
GST 2.0 is a new framework being implemented in India that simplifies the current four-rate GST structure to two rates: 5% and 18%, along with tax reductions on various goods.
How will the H-1B visa fee increase affect Indian workers?
The increase in the H-1B visa fee to $100,000 may impact many Indian professionals working in the US technology sector, but it will only apply to new visa applications.
What impact could the India-US trade talks have on the market?
Positive updates from the ongoing India-US trade negotiations could significantly influence investor sentiment and market dynamics.
What was the performance of the stock market last week?
Last week, the Nifty gained 0.85% and closed at 25,327.05, while the Sensex rose by 0.88%, closing at 82,626.23.
How did institutional investors perform last week?
Foreign institutional investors sold equities worth Rs 1,327.38 crore, while domestic institutional investors were net buyers, investing Rs 11,177.37 crore.
