The coming week is expected to be crucial for Indian stock markets as investors track the upcoming GST Council meeting, auto sales data, GST collection figures, and updates on US tariffs.
The GST Council is scheduled to meet on September 3–4 to discuss possible tax cuts. At the same time, auto sales numbers will start coming in from Monday, offering key insights into the health of the economy.
Higher vehicle sales are generally seen as a sign of strong economic performance.
Markets may also react on Monday to the first-quarter GDP data released on Friday. India's GDP grew by 7.8 percent in Q1 of FY26, surpassing expectations.
Globally, any comments from the US Federal Reserve on potential rate cuts will be closely watched, as they could influence market sentiment.
Vinod Nair, Head of Research at Geojit Financial Services, said that the Q1 GDP numbers highlight the strength of the Indian economy, providing a "buffer zone" against global volatility.
"A resolution on tariffs could boost market sentiment, though there is still a possibility of the 25 percent tariff staying in place," he noted.
Nair added that investors will also keep a close eye on upcoming domestic and US macroeconomic indicators, including PMI data, jobless claims, payroll figures, and unemployment numbers.
Last week, Indian markets closed in the red. The Nifty fell 443.25 points, or 1.78 per cent, to 24,426.85, while the Sensex dropped 1,497.20 points, or 1.84 per cent, to settle at 79,809.65.
Midcap and smallcap stocks also witnessed sharp declines. The Nifty Midcap 100 slipped 1,902.35 points, or 3.30 per cent, to 55,727.40, while the Nifty Smallcap 100 shed 692.50 points, or 3.86 per cent, to close at 17,227.
On the sectoral front, PSU banks (-3.46 per cent), financial services (-2.85 per cent), realty (-4.28 per cent), energy (-2.52 per cent), metals (-2.35 per cent), and PSE (-2.84 per cent) ended lower. The PSU index was the only gainer, closing 0.73 percent higher.
