The Russia-Ukraine negotiation process has begun, global stock markets are rising, and India is "leading the way."

According to CCTV News, on the 15th, Trump stated that he and Putin had "basically reached an agreement" on some form of security guarantees for Ukraine during their meeting in Alaska.

This easing signal pushed Asian stock markets higher, with investors turning their attention to the upcoming talks between Trump and Ukrainian President Zelensky, hoping for substantial progress in the peace process.

The Indian stock market performed particularly well. The Indian government proposed a plan to reduce the consumption tax for the first time in nearly a decade, stimulating the Nifty 50 index to rise 1.5% during trading on Monday, marking the largest single-day gain in over three months.

Investor attention is now focused on the Trump-Zelensky talks on Monday for further clues on market direction. Meanwhile, expectations for a rate cut by the Federal Reserve are also supporting the market, with traders closely monitoring the upcoming Jackson Hole Global Central Bank Conference to assess the future path of interest rates.

Summit Concludes, Market Focuses on Ukraine's Statement

According to CCTV News, after the meeting between the U.S. and Russian leaders in Alaska, President Trump stated on the 16th that he would meet with Ukrainian President Zelensky in the Oval Office on the afternoon of the 18th Eastern Time. If all goes well, a meeting involving the leaders of the U.S., Russia, and Ukraine will be arranged next. In this regard, Zelensky expressed Ukraine's support for the proposal to hold a tripartite meeting. Putin did not mention the tripartite meeting during a meeting held at the Kremlin on the 16th.

This statement temporarily set aside the threat of additional sanctions on Russian energy exports, alleviating market concerns about oil supply disruptions. Market participants generally believe that this outcome creates space for a diplomatic resolution. Jordan Rochester, head of macro strategy at Mizuho Corp., stated:

"Hope is a powerful thing, and this outcome will allow the gradual recovery of risk sentiment to continue."

Analyst Garfield Reynolds noted that investors seem to be more focused on the "lack of negative news" from the Alaska meeting rather than the "lack of positive news." Currently, the market's focus has completely shifted to Washington, with all parties eagerly awaiting Ukraine's response to the peace conditions. According to media reports citing an informed source, Kyiv will seek clear security guarantees during the talks.

India's Tax Reduction Plan Ignites Stock Market

While the external environment improves, strong domestic policies have also ignited the Indian stock market. According to media reports, Prime Minister Modi announced a comprehensive reform plan for the country's complex Goods and Services Tax (GST) system, aimed at reducing the prices of essential goods and electronics starting in October India is expected to see an economic boost from Prime Minister Modi's proposed reduction in consumption tax without harming government finances. Indian officials stated over the weekend that the proposed adjustments to the Goods and Services Tax will reduce the tax brackets from four to two, benefiting a wide range of sectors including consumers and small businesses.

The tax structure of India's Goods and Services Tax is complex, with four tax rates of 5%, 12%, 18%, and 28%. The proposed reform will reduce the tax brackets to two, with most goods previously taxed at 12% and 28% now taxed at the lower rates of 5% and 18%, respectively. Modi announced the tax reform news in his Independence Day speech last Friday.

Indian officials indicated that about two-thirds of the government's Goods and Services Tax revenue comes from the 18% tax bracket, which will limit the impact of the tax system adjustment on fiscal revenue. Any revenue loss may also be offset by increased spending on essential goods such as food.

The tax reform proposal will be discussed by a panel of finance heads from various states and then submitted to the Goods and Services Tax Council led by Finance Minister Nirmala Sitharaman in September or October. These changes will be implemented in the current fiscal year.

This move is seen by the market as a significant boost to consumer demand and corporate profitability. Citi Research stated that the lower tax rates should enhance overall demand and the earnings outlook for fiscal year 2027. Analysts at Motilal Oswal pointed out that sectors such as consumer staples, automobiles, cement, hotels, retail, and durable goods will be the main beneficiaries. Following this news, Indian automotive and consumer stocks surged 4.5% and 2% respectively on Monday, with shares of India's largest automaker Maruti Suzuki soaring 7.3%.

Additionally, according to the Chinese Ministry of Foreign Affairs, from August 18 to 20, Wang Yi, a member of the Political Bureau of the CPC Central Committee, Foreign Minister, and Special Representative of China on China-India border issues, will visit India at the invitation and hold the 24th meeting of special representatives on China-India border issues. This positive signal also adds new growth logic to the Indian market