All eyes are fixed on the GST Council meeting today, where discussions on possible tax cuts are taking centre stage. While clarity on the proposals may emerge today, the final decision is expected tomorrow.
The Centre is keen to roll out changes within days to revive sluggish trade, with finance minister Nirmala Sitharaman, who chairs the Council, hinting that reforms will focus on making the taxation system more transparent.
In a development that lifted sentiment, commerce minister Piyush Goyal announced that an India–US trade agreement could be finalised by November. His remarks indicated that talks with Washington are continuing, offering markets some relief amid global uncertainty.
The global currency and commodity markets continue to throw challenges. The dollar index is firming up, likely to put further pressure on the rupee. Crude oil prices have risen past $69 a barrel, dampening hopes of lower inflation. Meanwhile, gold has surged beyond $3,500 an ounce and is moving towards $3,600, keeping bullion investors alert.
Asian equities are trading lower today, reflecting weakness in the United States. Gift Nifty closed Tuesday night at 24,626 and briefly touched 24,645 this morning, hinting at a subdued opening for Indian markets.
In Europe, falling bond prices and rising yields dragged stocks down. The German index slid 2.2%, while the euro and pound sterling weakened. In the UK, 30-year bond prices sank to their lowest since 1998, underscoring investor concerns. Inflation in the eurozone climbed to 2.1%, slightly above forecasts.
After a day’s holiday, Wall Street resumed on Tuesday with losses. The Dow Jones plunged nearly 600 points in early trade before recovering to close 249 points lower at 45,295. The S&P 500 and Nasdaq also ended in the red, weighed down by investor caution. Futures are mixed, with Dow contracts edging lower but Nasdaq futures showing some recovery.
Technology stocks had a bright spot with Google’s parent Alphabet surging 8% after winning an antitrust case linked to Chrome browser dominance. Apple shares also rose 4% amid reports of its revenue-sharing arrangements with Google. Judge Amit Mehta noted that browser monopolies might carry less weight in an AI-driven era, a comment that boosted market confidence.
Indian markets mirrored global jitters. After a strong opening on Tuesday, indices surrendered gains and closed lower. The Sensex ended 206 points down at 80,157 while the Nifty shed 45 points to close at 24,579. The Bank Nifty slipped 341 points, reflecting weakness in the financial sector. Midcap and smallcap indices, however, managed gains, highlighting selective investor interest. Reliance Industries rose 1% to ₹1,367.50, providing some support to the benchmarks, with brokerages setting ambitious price targets ranging from ₹1,600 to ₹1,733.
Despite foreign institutional investors selling shares worth ₹1,159 crore, domestic funds stepped in with net purchases of over ₹2,500 crore. Analysts suggest resistance for Nifty around 24,700–24,800 levels, while support may hold near 24,250.
Zomato raised its platform fee from ₹10 to ₹12, aiming to reduce operating losses. Cochin Shipyard gained nearly 4% following reports of talks with Japan’s Mitsui OSK Lines for new shipbuilding orders. Sugar stocks surged after the government eased curbs on ethanol production, with Rajshree Sugars hitting the upper circuit.
Gold’s rally shows no signs of cooling. Spot prices closed at $3,533 an ounce, up nearly $58, before touching an intraday high of $3,617. Kerala’s domestic market reflected the surge, with 22-carat gold hitting ₹77,800 per sovereign, a ₹160 rise in a day. Silver too closed higher at $40.82 an ounce, supported by demand from solar panel manufacturers and shrinking global supply.
Industrial metals saw mixed trends, with copper and nickel easing, while aluminium and zinc firmed up. Rubber gained modestly, but cocoa, coffee and tea slipped sharply. Palm oil prices rose more than 2%.
The dollar index climbed to 98.40, pushing the euro down to $1.163 and the pound to $1.3368. The Japanese yen weakened to 148.81 per dollar. The rupee closed Tuesday at 88.16 against the greenback but may weaken further today as the dollar strengthens. The Chinese yuan too slipped to 7.14 per dollar.
Crude oil extended its rally, with Brent climbing 1.45% to $69.14. WTI traded at $65.65, while natural gas slipped slightly. Cryptocurrency markets showed mild recovery, with Bitcoin rebounding above $111,000, Ether trading just under $4,300, and Solana bouncing back to $210 after a sharp fall earlier.
