On Monday, August 18, the benchmark indices, Sensex and Nifty 50, are likely to start the session on a positive note, supported by favourable cues from both domestic and global fronts. As of 7:15 AM, the GIFT Nifty was trading near 24,901, up 246 points from its previous close.
What are the 3 Positive Catalysts This Monday Morning?
S&P Global has raised India’s sovereign credit rating from BBB- to BBB, while keeping the outlook tagged as “stable.” Alongside this, the agency upgraded the short-term rating from A-3 to A-2 and revised the transfer and convertibility assessment upward to A- from BBB+.
During his Independence Day address, Prime Minister Narendra Modi outlined a significant change in the Goods and Services Tax (GST) framework. The Modi Government is expected to rationalise GST rates into just two slabs, likely to be discussed in the next GST Council meeting this September. The proposed slabs are 5% and 18%.
The rollout of next-generation GST reforms is expected to reduce the tax burden on ordinary people, make daily necessities cheaper, and boost overall growth.
This could serve as a double Diwali gift for Indian consumers, micro, small, and medium enterprises (MSMEs), and small entrepreneurs who stand to benefit.
Although the Central Government may face a short-term revenue hit, it is likely to be offset by a significant rise in consumption.
The discussions on a trade pact between India and the United States may face a delay. A planned visit by US trade negotiators to New Delhi this month has been cancelled due to growing bilateral tensions.
On Thursday, August 14, Foreign Institutional Investors (FIIs) were net sellers for the 4 consecutive trading sessions, having sold equities worth ₹1,926.76 crore. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹3,895.68 crore during the same session, extending their buying streak to 29 consecutive trading sessions.
On Thursday, 14 August, Indian benchmark indices Sensex and Nifty 50 ended with marginal gains, supported by positive global market trends. However, the upside remained limited as investors stayed cautious ahead of the upcoming Russia–US discussions on the Ukraine conflict, leading to a subdued mood in the holiday-shortened week. The Sensex closed at 80,597.66, higher by 57.75 points or 0.07%, while the Nifty 50 finished at 24,631.30, up 11.95 points or 0.05%, maintaining its position above the 24,600 level.
US equity futures edged higher in early Asian trade, lifted by hopes of potential Federal Reserve rate cuts that had already boosted Wall Street last week.
The Dow Jones Industrial Average closed at 44,946.12, up 34.86 points or 0.08%. Meanwhile, the S&P 500 slipped 18.74 points, or 0.29%, to 6,449.80, and the Nasdaq Composite lost 87.69 points, or 0.40%, to finish at 21,622.98.
The Fed last reduced rates in December and had previously warned that tariffs could add to inflationary pressures. However, with the labor market softening and tariff-related effects yet to appear in consumer inflation, traders are increasingly anticipating a dovish turn in policy as early as next month.
On August 15, US President Donald Trump met Russian President Vladimir Putin in Alaska for a high-level summit focused on resolving the conflict in Ukraine. Two days later, on August 17, Trump spoke of making “big progress” with Russia, just before holding talks with Ukrainian President Volodymyr Zelensky and several European leaders.
The dollar edged higher on Monday, ahead of Trump’s meeting with Ukraine’s Zelenskiy and the Fed’s Jackson Hole symposium. The dollar index rose to 97.85 after a 0.4% fall last week.
Gold prices edged up to $3,345 per ounce on Monday but remained near its lowest level in over two weeks, as prospects of easing geopolitical tensions dulled the metal’s safe-haven appeal.
Oil prices struggled as Trump backed away from threats to place more restrictions on Russian oil exports. Brent dropped 0.4% to $65.61 a barrel, while US crude eased 0.2% to $62.67 per barrel.
Disclaimer: The article is for informational purposes only and not an investment advice.
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