Keep your money ready, the stock market is about to boom in coming days
The Indian stock market saw a third consecutive day of gains on Tuesday, September 18th. The market was buoyant from the morning, and the Sensex rose nearly 450 points during the day's trading. Although there was some profit-booking later, the Sensex finally closed 320 points higher at 83,013.96. Meanwhile, the Nifty also gained 93 points to settle at 25,423.60.
While crude oil prices are falling, changes in GST will benefit the market, and global markets are also positive.
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In the past 14 trading days, the Nifty has risen by more than 1,000 points. The market rally isn't driven solely by numbers, but by several key news and developments that are now shifting market direction. Let's understand, one by one, why the market could rally further in the coming days.
US May Remove India's Taxes
The US may soon remove some of the heavy taxes imposed on India. India's Chief Economic Advisor, V. Anantha Nageswaran, has stated that the US is considering removing punitive tariffs of 25%. Speaking at an event in Kolkata, he explained that these taxes were likely imposed for geopolitical reasons, but given recent events, it is expected that these taxes will not be imposed after November 30th. This clearly indicates that India-US relations are improving. This will boost India's exports and foreign investors will be able to invest in India with greater confidence.
Federal Reserve Cuts Interest Rates
The US central bank, the Federal Reserve, has cut interest rates by 0.25% for the first time in 2025. It has also hinted at two more cuts this year. This news brings relief not only to the US, but to markets around the world.
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Experts believe that the Federal Reserve's interest rate cut will directly impact the Indian rupee, the stock market, petrol and diesel prices, and foreign investment (FII). Experts say that after this cut, the dollar will weaken in the coming days, and the rupee may strengthen slightly.
Furthermore, foreign investment may return to India. This will benefit both the Indian economy and the stock market.
Good Signals from Global Markets
Good news is also coming from foreign markets. Stock markets in Japan, South Korea, and China closed with gains yesterday. Although the US market experienced some fluctuations, investors there also seem to be happy with the interest rate cut. Overall, the signals coming from around the world could prove beneficial for the Indian market.
Crude Oil Prices Decline
The price of crude oil (Brent crude) has declined in the international market. On Thursday, oil prices fell 0.16% to $67.86 per barrel. Furthermore, the OPEC group has indicated an increase in oil production, which could boost supply in the market. If this pace continues, there is a possibility of excess oil supply by the end of the year, which could further lower prices. This is good news for India, a major oil importer. Cheaper oil will lower transportation and other commodity prices, benefiting the market.
GST Changes Raise Expectations
On August 14th, Prime Minister Modi announced changes to the GST, which are now scheduled to be implemented on September 22nd. Since the announcement of the new GST, market sentiment has shifted. Experts say that this will significantly benefit the stock market in the coming days. Shares of the auto sector and FMCG (daily use goods) are seeing a significant rally, especially in the auto sector. The new GST rules will increase purchasing power, drive more spending, and boost corporate earnings.
Nifty Could Touch 27,000
Goldman Sachs, the world's renowned investment firm, has made a bold prediction about the Indian stock market. The company predicts that the Nifty could reach 27,000 in the next 12 months. Goldman Sachs expert Sunil Kaul stated that India's economy is strong and market conditions are favorable. Experts believe that a significant period of growth is about to begin in the Indian stock market.