Sensex, Nifty Seen Higher On Proposed GST Reforms Push

(RTTNews) - Indian shares look set to open on a positive note Monday after S&P Global Ratings upgraded India's sovereign ratings, citing buoyant economic growth, enhanced monetary policy conditions and the government's fiscal consolidation commitment.

The rating agency raised the country's sovereign credit ratings to 'BBB' from 'BBB-', with a 'stable' outlook, saying the higher tariffs from the U.S. administration will have only limited impact on the economy.

S&P pointed out that India's exports to the U.S. constitute only 2 percent of GDP and therefore a higher tariff is unlikely to pose a material drag on India's growth.

Automakers and FMCG stocks could be in focus today after Prime Minister Narendra Modi promised next generational GST reforms by Diwali, which will bring down the tax burden on consumers as well as MSMEs.

On the flip side, the Trump-Putin Alaska summit ended without a deal and a planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been called off, dashing hopes for a tariff relief on a proposed trade agreement.

In another significant development, Chinese Foreign Minister Wang Yi is set to meet Prime Minister Modi on Tuesday before Modi's China visit for the SCO summit in Tianjin.

Before calling on Modi, Wang will hold separate talks with External Affairs Minister S Jaishankar and NSA Doval that could see both sides deliberate on a range of key issues including border situation, trade and resumption of flight services.

Asian markets were mostly higher this morning after U.S. President Donald Trump said that he and Russian President Putin had discussed land transfers and security guarantees for Ukraine, and had "largely agreed".

Separately, U.S. Secretary of State Marco Rubio said the potential for immediate cease-fire is "not off the table."

European and NATO leaders will join Ukrainian President Volodymyr Zelensky in Washington today to present a united front in talks with Trump after Russia reportedly said it is open to the idea of the U.S. and its European allies offering Ukraine a security guarantee resembling NATO's collective defense mandate.

The dollar index was little changed in Asian trading, while gold edged up slightly as caution crept in ahead of the Federal Reserve's annual retreat at Jackson Hole with Chair Jerome Powell's speech likely to be watched closely for guidance on a September interest-rate cut.

Oil prices were marginally lower as the Alaska summit ended without any geopolitical escalation, easing concerns of supply disruption.

U.S. stocks ended mostly lower on Friday after a strong week. The S&P 500 eased 0.3 percent but logged its second weekly gain. The Dow inched up marginally as retail sales demonstrated resilience in July.

The tech-heavy Nasdaq Composite shed 0.4 percent on the back of a decline in chip stocks and weak consumer sentiment data, primarily driven by increasing concerns about inflation on lingering anxiety about the impact of tariffs.

European stocks turned in a mixed performance on Friday ahead of the Trump-Putin summit. The pan European STOXX 600 ended flat with a negative bias.

France's CAC 40 climbed 0.7 percent, but the German DAX finished marginally lower and the U.K.'s FTSE 100 dipped 0.4 percent.