GST Council Meeting Holds Key as Indian Markets Open Flat

Indian stock markets opened flat on Wednesday, with investors closely monitoring the pivotal Goods and Services Tax (GST) Council meeting expected to influence GST rates. The Nifty 50 index started at 24,616.50, a rise of 36.90 points or 0.15%, while the BSE Sensex opened at 80,295.99, up 138.11 points or 0.17%.

Market participants hope that the council will introduce measures to stimulate economic growth and enhance domestic consumption, especially amid ongoing external challenges. Experts assert that the GST Council's resolutions will significantly impact the market's trajectory in the upcoming days.

Ajay Bagga, a Banking and Market Expert, commented to ANI, "Global cues are negative, with bond yields climbing to multi-year highs across the UK, France, Japan, and the US. US markets began September on a sour note, with significant pressure on Big Tech stocks. Asian markets reflected similar pressure this morning." Bagga added, "Indian markets await the GST Council's decisions to potentially reduce consumption taxes, aiming to bolster economic growth, particularly during the festival season, promoting personal consumption."

On the NSE's broader spectrum, trends were mixed with slight gains. The Nifty 100 index increased by 0.05%, Nifty Midcap 100 by 0.15%, and Nifty Smallcap 100 also opened positively. Among sectoral indices, Nifty Auto increased by 0.37%, Nifty FMCG gained 0.05%, and Nifty Metal advanced 0.8%, while Nifty Pharma saw an early rise of 0.3%. Nifty IT, however, faced pressure in the morning trade.

Across other Asian markets, the open showed a mixed pattern. Japan's Nikkei 225 decreased by 0.32%, Singapore's Straits Times fell by 0.29%, and Hong Kong's Hang Seng dropped by 0.34%. Conversely, Taiwan's Weighted index rose by 0.27%, and South Korea's KOSPI increased by 0.36%. Experts suggest that attention remains fixed on the GST Council meeting, anticipated to dictate not only equity markets but also the broader economic perspective in the ensuing months.

(With inputs from agencies.)