GST meet, auto sales, GDP data and global cues to guide markets next week

Mumbai- The upcoming week is expected to be crucial for Indian equities, with investors focusing on the GST Council meeting, auto sales numbers, GST collection figures, and global economic signals.

The GST Council will meet on September 3–4 to discuss possible tax cuts. Meanwhile, auto sales data starting Monday will provide key insights into consumer demand and the broader health of the economy. Strong vehicle sales are generally considered a positive indicator of economic growth.

Markets will also react to India’s first-quarter GDP data, released on Friday, which showed 7.8 percent growth in Q1 FY26 — surpassing expectations. Globally, investors will watch for US Federal Reserve commentary on potential rate cuts, which could influence sentiment.

Vinod Nair, Head of Research at Geojit Financial Services, said the robust Q1 GDP figures highlight the strength of the Indian economy, creating a “buffer zone” against external volatility. He added that progress on tariff discussions could lift market mood, though the risk of a 25 percent tariff remains.

Investors will also track key domestic and US macroeconomic indicators such as PMI data, jobless claims, payroll reports, and unemployment figures.

Last week, markets ended sharply lower. The Nifty dropped 443.25 points (1.78%) to close at 24,426.85, while the Sensex declined 1,497.20 points (1.84%) to 79,809.65. Midcaps and smallcaps also saw heavy losses, with the Nifty Midcap 100 sliding 3.30% to 55,727.40 and the Nifty Smallcap 100 falling 3.86% to 17,227.

Among sectors, PSU banks (-3.46%), financial services (-2.85%), realty (-4.28%), energy (-2.52%), metals (-2.35%), and PSE (-2.84%) ended lower. The PSU index was the lone gainer, rising 0.73%.

WIth inputs from IANS