GST improvement and global trends will give new direction – Obnews
Samira Vishwas August 17, 2025 08:24 PM

The Indian stock market is ready for a dynamic week after Independence Day, in which global and domestic factors will decide the direction of Dalal Street. According to Zee News, the market is facing several triggers after the process of decline of six weeks in the Nifty and Sensex with a growth of 1% last week.

The GST 2.0 reforms declared by Prime Minister Narendra Modi on August 15, 2025 have been promised to cut rates till Diwali, which aims to promote consumption on daily goods. According to PTI, Finance Minister Nirmala Sitharaman has given details of changes in two GST slabs (5% and 18%), under which tax on 99% items will be 12% to 5% and 28% to 18%. This may increase the demand for FMCG, auto and consumer durables, although @Renukajain6 has warned that it may take months to get benefits.

Globally, there was no decision on the Ukraine ceasefire at the Trump-Putin meeting in Alaska on August 15, 2025, but indications of progress, which improved the market perception. According to Sunny Aggarwal of SBI Securities, there has been a temporary relief from the indication of India’s postponing 25% tariffs effective from 27 August by Trump. The US markets showed mixed outcomes, with the Dow 0.08% above, but due to weak industrial figures, S&P 500 and Nasdaq remained below, which affected the global signals.

Foreign Institutional Investors (FIIs) sold ₹ 10,173 crore last week, while domestic institutional investors (DIIs) purchased ₹ 19,000 crore, which provided support to pharma and auto shares. More than 100 companies, including Coal India and HAL, have planned dividends and stock division, promoting stock-specific activities. Crude oil prices declined after talks, leading to stability in the market.

According to Santosh Meena of Swastika Investmart, the Nifty is supported at 24,350, while the resistance is at 24,700-24,800. Going above this can increase by up to 25,225. Investors should monitor FII trends, American Fed’s functioning and GST implementation to know the direction of the market.

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