H-1B visa fee hike, trade talks with US, GST cut key drivers for markets this week: Analysts

New Delhi: The decision to hike US H-1B visa application fee to $1,00,000, trade talks and the GST rate cut will be the key drivers for stock market movement this week, analysts said.

Besides, trends in global equity markets would also be tracked by investors.

"This week, markets will first react to the US imposing an annual fee of $1,00,000 on H-1B visas, announced late Friday. While export-driven sectors are already grappling with tariff-related pressures, this move could further weigh on IT services exporters at a sensitive time when trade negotiations remain under way," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Globally, investors will be closely monitoring the performance of US markets in the aftermath of the Federal Reserve's rate cut, he added.

Trouble mounted for the $285-billion Indian IT sector in its largest outsourcing market, as the US decided to hike H-1B visa application fee to $1,00,000 (about Rs 88 lakh), with apex body Nasscom warning that business continuity for onshore projects will be disrupted.

Notably, Indian tech professionals account for bulk of H-1Bs, over 70 per cent.

"This move (the US decision to hike H-1B visa application fee to $1,00,000) could sharply increase costs for US clients and reduce demand for Indian tech talent, directly impacting the revenue visibility of large IT exporters such as TCS, Infosys, and Wipro," Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said.

On the domestic front, traders will also monitor rupee movement and crude oil prices, both of which remain key drivers for Indian equities, he added.

Meanwhile, Commerce and Industry Minister Piyush Goyal will lead an official delegation to the US for trade talks on September 22, an official statement said on Saturday.

The delegation plans to hold talks with US team to take forward discussions with a view to achieve early conclusion of a mutually beneficial trade agreement, it said.

During the last visit of the team of officials from the office of United States Trade Representative to India on September 16, positive discussions were held on various aspects of the trade deal, and it was decided to intensify efforts in this regard.

Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from Monday as the reduced GST rates on about 375 items come into effect.

In a bonanza to consumers, the GST Council, comprising Centre and states, has decided to reduce tax rates on goods and services, from September 22 -- the first day of the Navaratri.

Markets would also track trading activity of foreign investors. Foreign Institutional Investors (FIIs) bought equities worth Rs 390.74 crore on Friday, according to exchange data.

On the global front, focus now shifts to key US macroeconomic data, including GDP, manufacturing & services PMI, and PCE Price Index.

Vikram Kasat, Head - Advisory, PL Capital, said, "As India heads into the festive season, all eyes are on how markets digest recent GST rate cuts, evolving consumer demand trends, and the steady stream of IPOs that have kept primary market activity resilient despite global volatility." Last week, the BSE benchmark jumped 721.53 points or 0.88 per cent, and the Nifty climbed 213.05 points or 0.84 per cent.