India's stock markets are poised for a strong opening today, buoyed by favorable global and domestic developments. The Nifty 50 index is expected to rise approximately 1.4% from Thursday's close, following a significant decline in global oil prices. This drop is attributed to a recent U.S.-Russia meeting in Alaska, where both nations appeared to align on seeking a peaceful resolution in Ukraine, alleviating fears of supply disruptions. This is particularly advantageous for major oil-importing countries like India. reuters.com
On the domestic front, investor sentiment has been further bolstered by the Indian government's proposal to reduce the Goods and Services Tax (GST) on small cars from 28% to 18%. This move aims to stimulate consumer demand ahead of the Diwali festival and is expected to benefit manufacturers such as Maruti Suzuki, Hyundai, and Tata Motors. Additionally, the government is considering lowering GST on health and life insurance premiums from 18% to 5% or even zero, as part of a broader initiative to support the economy. reuters.com