Several factors have the potential to influence the Indian stock market in the coming days. These include changes to the Gift Nifty, the rollout of GST 2.0, and an increase in H1B visa fees.

Gift Nifty

The Gift Nifty is an early indicator of how the Indian market might perform. It reflects the sentiments and trends in the global markets, providing cues for domestic investors.

GST 2.0

The new Goods and Services Tax (GST) rates went into effect on September 22, 2025. Indian taxpayers are bracing for a major overhaul as GST 2.0 is implemented, which will now have just two primary tax slabs of 5% and 18%. Previously, the GST had four slabs: 5%, 12%, 18%, and 28%, along with a compensation cess on luxury and sin goods. Items that previously attracted 12% or 28% GST are moving to lower categories, with FMCG, auto, and retail companies already announcing price reductions, which should translate into tangible savings. Prime Minister Narendra Modi congratulated the nation on the launch of the new GST reforms that will come into effect, promising a simpler structure, fairer taxation, and lower prices on essentials, with hopes of boosting demand in key sectors during the festive season.

H1B Visa Fee Hike

The U.S. government has increased the H-1B visa fee, a move that is likely to affect Indian IT companies. Former U.S. President Trump signed a proclamation to increase the H-1B visa fee substantially. For all new H1B visa applications, companies have to pay a one-time cost of $100,000 (₹88 lakh) to the U.S. government. This fee is applicable from September 21, 2025. The new law applies only to fresh visas and is not an annual charge. Existing H-1B holders will not face additional costs for renewals or re-entry into the U.S..

Analysts expect Indian IT stocks to face a sell-off following the increase in H-1B visa costs, potentially impacting profitability and prompting companies to rethink hiring strategies. The immediate impact on IT stocks may be a knee-jerk reaction with a potential gap down opening of 1-3%. While larger firms may manage, mid-tier companies heavily reliant on new visas could experience a sharper impact. Companies may either shift jobs to India or charge more, which is negative for IT in the medium to long term. Clarification around this fee on H1B visa will drive the Indian IT company's stock price in the short term, and trade talk progress could influence the overall market sentiment.