Sensex, Nifty Seen Higher As Investors React To GST Meeting Outcome

(RTTNews) - Indian shares look set to open higher on Thursday after the Goods and Services Tax (GST) Council approved a new dual-slab structure of 5 percent and 18 percent, and scrapped the existing 12 percent and 28 percent rates, in a landmark move aimed at simplifying India's indirect tax regime.

According to Finance Minister Nirmala Sitharaman, the revised structure will be implemented from September 22. The restructured tax framework is positioned as a step to stimulate domestic demand and help businesses cope with global trade challenges.

Benchmark indexes Sensex and Nifty reversed early losses to close about half a percent higher on Wednesday after a survey showed India's service sector growth accelerated to more than a 15-year high in August on the back of surging new orders.

The rupee recovered from a record low to close up by 9 paise at 88.06 against the dollar, despite persistent foreign fund outflows amid lingering trade tariff concerns.

Foreign investors net sold shares worth Rs 1,666 crore on Wednesday, while domestic institutional investors net bought shares to the tune of Rs 2,495 crore, according to provisional exchange data.

Asian markets were mostly higher this morning as a bond market sell-off stabilized and dovish Fed comments coupled with weak U.S. data reinforced rate-cut bets.

Meanwhile, the Trump administration on Wednesday night asked the Supreme Court to quickly accept and rule on an appeal seeking to overturn a lower court decision that found most of his tariffs are illegal.

The dollar index held steady after weakening in the previous session amidst bond market volatility. Gold dipped slightly to hover near $3,540 per ounce after surging to a fresh record high as global economic uncertainties mount.

Oil traded lower, extending a decline of more than 2 percent in the previous session on concerns that OPEC+ may boost supplies.

U.S. stocks ended mixed overnight as data showed job openings slipped in July to the lowest level in 10 months, reflecting a softening labor market and reinforcing bets on a Federal Reserve interest-rate cut.

Federal Reserve Governor Christopher Waller said the U.S. central bank should begin lowering interest rates this month and make multiple cuts in the next three to six months.

The tech-heavy Nasdaq Composite jumped 1 percent as a favorable court ruling regarding Google's search engine in a major antitrust case fueled optimism that tech giants will be able to weather regulatory threats.

The S&P 500 gained half a percent while the narrower Dow finished marginally lower. European stocks closed broadly higher on Wednesday after the release of mostly encouraging regional data on private sector activity.

The pan European STOXX 600 advanced 0.7 percent. The German DAX rose half a percent, France's CAC 40 climbed 0.9 percent and the U.K.'s FTSE 100 added 0.7 percent.