HEROMOTOCO.NSE

Hero MotoCorp Ltd

Investors will keep an eye out for developments around the GST Council meeting later this week.

Indian stock markets are likely to open higher on Tuesday. This is due to expectations of GST revisions and positive GDP data. The GST council is meeting to discuss tax cuts on various products. However, foreign investors have been selling Indian shares recently. Hero MotoCorp reported growth in sales. Bharat Electronics received new orders.

NEW DELHI: India plans to cut consumption tax by at least 10 percentage points on nearly 175 products ranging from shampoos and hybrid cars to consumer electronics, two sources said, revealing new details of Prime Minister Narendra Modi’s tax overhaul. The biggest reform of the goods and services tax system in nearly a decade comes amid strained trade ties with the U.S., with Modi making repeated calls for increased use of Indian products. Modi first flagged his reform plan last month on Independence Day when he said he would make daily products cheaper for people in the world’s fifth largest economy. His proposal includes reducing goods and services tax (GST) on consumer items such as talcum powder, toothpaste and shampoo from 18% to 5%, which is likely to boost sales at companies like Hindustan Unilever and Godrej Industries. Air conditioners and television sets could see GST drop from 28% to 18% ahead of the Diwali shopping season starting in October, when brands like Samsung, LG Electronics, and Sony dominate sales.

India’s equity benchmarks fell for a second straight month in August, as punitive U.S. tariffs on Indian goods are expected to hit economic growth and corporate earnings. The Nifty 50 index dropped 0.3% to 24,426.85 points at close on Friday, taking the month’s losses to 1.4%. The BSE Sensex declined 0.34% on the day and 1.7% on month. The indexes had lost about 3% in July. The rupee slid to a record low on Friday, slipping past the 88-per-dollar mark for the first time ever. In the week, the equity benchmarks lost about 1.8% as Indian markets underperformed their Asian and emerging market peers. The U.S. on Wednesday imposed an additional 25% tariff on Indian goods over New Delhi’s purchase of Russian oil, doubling the earlier 25% duty. The tariffs are likely to shave off 60-80 basis points from India’s GDP growth if they stay in place for a year, economists have said, potentially adding pressure on an already slowing economy. Foreign investors have pulled out $3.3 billion from Indian stocks in August, the heaviest outflow since February, as tariff woes and weak corporate earnings dragged.

Textile stocks trade mixed as Trump tariffs kick in. Markets remain volatile ahead of options expiry.

InterGlobe Aviation and Max Healthcare Institute to replace Hero MotoCorp and IndusInd Bank in the Nifty 50 index, effective Sept. 30