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Trump-Putin meet, PM’s GST pledge may lift markets this week

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Trump-Putin meet, PM's GST pledge may lift markets this week

MUMBAI: With no negatives for India emerging from the weekend meeting between the US President Donald Trump and his Russian counterpart Vladimir Putin in Alaska, and Prime Minister Narendra Modi announcing GST reforms later in the year, Dalal Street investors are expecting a positive start to the week. However, the news that US trade negotiators are not coming to India this week, as was scheduled, and the continuous selling by foreign funds in the past few weeks are the factors that would weigh on investor sentiment, market players said.Domestic investors are relieved that the Trump-Putin meeting didn’t lead to any negative fall-out for India, including, and most importantly, about its buying of Russian crude oil to maintain its energy supply. The Indian govt’s post-meeting official statement mentioned that talks should go on to end the Russia-Ukraine war, a key factor for the prices of crude oil, India’s biggest import item. PM Modi’s assurance on Independence Day that GST rates would be rationalised in the next few months, was also a positive for investors. Such a move was a longstanding demand for the business community.On the negative side, net foreign fund selling of nearly Rs 24,200 crore would weigh on the market sentiment, brokers and analysts said. Going forward, foreign fund activity will be influenced by the action on the tariff front, said VK Vijayakumar, chief investment strategist, Geojit Investments. “Latest news of easing of tensions between the US and Russia and no further sanctions on Russia indicate that the secondary tariff of 25% imposed on India is unlikely to come into effect after Aug 27. This is a positive. Another positive factor which can influence FII behaviour is the rating agency S&P raising India’s credit rating (last week),” he said.





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