Stock Market On Edge: GST 2.0 Rollout, $100K H-1B Fee & India-US Trade Talks To Shape Market Sentiment This Week

The coming week holds high stakes for Indian equity markets, with several major global and domestic events likely to drive investor sentiment. The rollout of GST 2.0, a sharp hike in H-1B visa fees by the US, progress in the India-US trade dialogue, and foreign institutional activity will all play pivotal roles in shaping market momentum.

Starting September 22, the Indian government will begin implementing GST 2.0, which introduces a simplified two-rate structure. The existing four-rate slabs of 5 per cent, 12 per cent, 18 per cent, and 28 per cent will be consolidated into just two tiers: 5 per cent and 18 per cent.

In addition to simplification, taxes on a wide range of goods have been slashed, providing immediate relief to consumers and potentially stimulating demand across several sectors. This move is widely expected to boost investor confidence, especially in FMCG, retail, and consumption-driven stocks.

H-1B Visa Fee Hike: Tech Sector On Watch

In a surprise development, US President Donald Trump has announced a $100,000 H-1B visa fee for new applicants. This one-time charge could significantly impact the Indian IT and technology services sector, as a large portion of the workforce abroad is on H-1B visas.

The Trump administration later clarified, “This is NOT an annual fee. It’s a one-time fee that applies only to the petition and won’t apply to existing holders of valid visas re-entering the country.”

Despite the clarification, investors will be watching tech stocks closely, especially those with heavy U.S. exposure such as Infosys, TCS, and Wipro.

India-US Trade Talks May Offer A Boost

Another key variable will be updates from the ongoing trade discussions between India and the US. An American delegation is currently in India, and both sides have signalled constructive progress. Any positive outcome or announcement from the talks could lift market sentiment, especially for export-driven and multinational sectors.

Market Recap and FII/DII Activity

Last week ended on a strong note for Indian equities. The Nifty climbed 0.85 per cent to close at 25,327.05, while the Sensex surged 721.53 points (0.88 per cent) to finish at 82,626.23.

Sectoral indices were largely positive:

Nifty PSU Bank surged 4.83 per cent.

Realty gained 4.43 per cent.

Energy rose 2.31 per cent.

PSE advanced 2.19 per cent.

Services added 0.95 per cent.

On the institutional front, FIIs recorded the lowest weekly outflow in weeks, selling equities worth Rs 1,327.38 crore, while DIIsremained strong net buyers, investing Rs 11,177.37 crore.