Trump-Putin meeting to GST reforms: How Indian stock market may react on Monday? EXPLAINED
GLOBAL DEFENCE
The Indian stock market enters the new week facing a unique mix of global and domestic triggers. On the international front, investors are keenly watching the outcome of the Trump–Putin meeting, which could reshape global risk sentiment. If the talks signal a thaw in U.S.–Russia relations, it may bring stability to crude oil prices, ease supply concerns, and encourage stronger foreign inflows into emerging markets like India.
Back home, the government’s push for new GST reforms is expected to provide a cushion of positivity. Measures such as simplifying tax slabs, rationalizing rates in key sectors like FMCG, textiles, and services, and improving input tax credit rules could boost consumption, strengthen corporate balance sheets, and signal policy stability. Sectors like FMCG, auto, and banking may lead gains if reforms are welcomed by industry stakeholders. Overall, Monday’s market reaction is likely to be a tug-of-war between global geopolitical cues and domestic pro-growth policy momentum, with volatility high but sentiment leaning positive if GST reforms outweigh external uncertainties.
This would directly benefit oil-dependent sectors, reduce import pressure, and improve market liquidity. Conversely, if the meeting ends on a hostile note with renewed sanctions or geopolitical rhetoric, global equities could see a sell-off, prompting Indian markets to mirror the nervousness through profit-booking and short-term volatility.