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News Topical, Digital Desk : Indian stock markets closed with a decline for the third consecutive session. On Friday, August 29, the Sensex closed down 271 points (0.34%) at 79,809.65. While the Nifty 50 closed down 74 points (0.30%) at 24,426.85. The BSE Midcap and Smallcap indices also fell 0.41 percent and 0.29 percent respectively. Many factors can affect the market next week. The month of August has ended and car and two-wheeler makers will release the sales figures for the last month, which can affect the direction of the market.
Auto sales figures
The month of August has ended and car and two-wheeler manufacturing companies will release the sales figures for the previous month. The impact of August sales can be seen on the shares of auto companies. Companies whose shares will be monitored include companies like Tata Motors, Mahindra and Maruti Suzuki. Impact of Trump tariff on India India is facing the impact of tariffs imposed by the US, which also includes a 25 percent duty on the purchase of cheap Russian crude. Currently, the 50 percent tariff imposed on India is posing a threat to Indian exports worth $45 billion. Due to these increased tariffs, Indian products may lose their competitive ability, which may benefit countries like China and Vietnam. Tariffs on India are higher than other Asian countries, which include China-30 percent, Vietnam-20 percent, Indonesia- 19 percent and Japan at 15 percent. GST Council meeting The 56th meeting of the GST Council is scheduled to be held in New Delhi on 3-4 September, in which the recommendations of the Group of Ministers will be reviewed. In this meeting, the two-rate GST slab and other reforms suggested by the central government are likely to be discussed. In the proposals presented by the government, GST on many items may be reduced. The Center has suggested removing the 12 percent and 28 percent GST slab and reducing tax on many medical products. According to sources, there is a proposal to reduce GST on fertilizer acid and bio-pesticides to 5 percent, which is currently 18 percent and 12 percent. GST on solar cookers, solar water heaters and other energy devices will be reduced to 5 percent (reduced from the current 12 percent). Global signals The US Federal Appeals Court has given a big blow to Trump on tariffs. The court said that many global tariffs of President Donald Trump were wrongly imposed, which dealt a big blow to his economic policies. On Friday, the US Court of Appeals for the Federal Circuit upheld the lower court's decision by a 7-4 decision and said that Trump violated his powers under a decades-old law. On the other hand, investors are hoping that the US Fed may cut the interest rate by 25 basis points in its September meeting. FIIs- DIIs Foreign institutional investors are continuously selling strongly in the Indian stock market. Foreign portfolio investors (FPIs) are continuously selling citing slow earnings growth, high valuation and geopolitical risk. FPIs sold shares worth Rs 8,312.66 crore on Friday, taking the outflow to $15.2 billion this year. Thus, next week will be challenging for the Indian stock market, as US tariffs, expectations of GST reform, global signals and FII selling will affect investors.
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