Stock Market Today | Sensex, Nifty set to open higher on GST rate cut, US rate cut hopes

India's stock market is set to open higher today on expectations of a rate cut by US Federal Reserve even as GST reforms continue to buoy sentiment.

A stock ticker.(HT)

Gift Nifty futures were trading 0.23% higher at 24,882.50 points as at 8:42 am, indicating that Nifty 50 will open above Friday's close of 24,741 points.

The Nifty 50 and BSE Sensex rose 1.3% and 1.1%, respectively, last week after the GST Council cut tax on everyday goods in an effort to stoke consumption.

Other Asian markets opened higher, with the MSCI Asia ex-Japan index rising 0.4% after data showed the US created far fewer jobs than expected in August, raising hopes of a rate cut later this month.

Lower interest rates in the United States make emerging markets such as India attractive for foreign investors.

Foreign portfolio investors remained net sellers of Indian stocks for the tenth straight session on Friday, offloading stocks worth ₹1,305 crore. Domestic institutional investors continued their buying streak to the ninth session on Friday, purchasing stocks worth ₹1,821 crore.

“Looking ahead, sentiment is likely to remain mixed. Domestic growth-linked sectors stand to benefit from GST rationalisation, resilient consumption and government spending, while uncertainty over global trade negotiations continues to restrain risk appetite,” Vinod Nair, head of research at Geojit Investments, told Reuters.

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