The domestic equity market began the week on a positive note with a gap-up opening, lifted by expectations of GST rationalisation, analysts said on Saturday.
They noted that the week reflected India’s twin approach of shielding against global headwinds while strengthening domestic growth drivers.
A sovereign rating upgrade from S&P further boosted investor confidence.
Vinod Nair, Head of Research at Geojit Investments Ltd, stated, “However, the rally lost momentum toward the end of the week as investors turned cautious due to profit booking and external headwinds. A spike in the 10-year Indian government bond yield also raised concerns about the fiscal position in light of the GST reforms.”
Markets are also waiting for clarity on the proposed additional 25 per cent US tariffs on Indian goods tied to Russian oil imports, introduced next week.
Wall Street Rises on Fed Rate Cut Signals
Meanwhile, US stocks surged on Friday after Federal Reserve Chair Jerome Powell signalled that a rate cut may be on the horizon.
The Dow Jones hit a new intra-day record, climbing by more than 900 points.
According to Arsh Mogre, Economist at PL Capital, Indian policymakers rolled out a $20 billion GST-based consumption stimulus and introduced a modernised Income-tax Act to simplify compliance and boost household demand.
These measures are likely to add around 0.6 per cent to GDP.
The Reserve Bank of India reaffirmed its 4 per cent inflation target, pointing to continuity in monetary policy despite global volatility.
“With Q1 FY26 growth projected at 6.5–6.7 per cent, momentum remains solid, though near-term risks hinge on US monetary signals and trade frictions. Overall, India’s macro stance is defined by proactive fiscal support, policy credibility, and resilience against global uncertainty,” Mogre observed.
On Friday, the Sensex closed at 81,306.85, down 693.86 points or 0.85 per cent.
The 30-share index opened in negative territory at 81,951.48 compared with the previous close of 82,000.71, and touched an intra-day low of 81,291.77 amid broad-based selling.
Nifty ended at 24,870.10, down 213.65 points or 0.85 per cent.
Analysts believe the consumption sector stands to gain from a favourable monsoon, low interest rates, and indirect tax reliefs.
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