Auto stocks zoomed on Monday amid prospects of a reduction in GST rates from 28 per cent, with the government having sent a proposal for rate rationalisation and reforms to the group of ministers.
Shares of Maruti Suzuki India surged 8.94 per cent, Hyundai Motor India by 8.45 per cent, Ashok Leyland by 8.12 per cent, Apollo Tyres by 7.28 per cent, TVS Motor Company by 6.58 per cent, Hero MotoCorp by 5.90 per cent, and Bajaj Auto advanced 4.52 per cent on the BSE.
The stock of MRF went up 4.11 per cent, Mahindra & Mahindra by 3.54 per cent, Eicher Motors by 2.46 per cent, and Tata Motors by 1.78 per cent.
Maruti Suzuki chairman RC Bhargava told Reuters that the proposal to rationalise goods and services tax is a “huge reform”, which is bound to have good outcomes.
Consumer durables stocks surged on Monday, buoyed by plans for big bang reforms in the GST regime by Diwali.
Shares of Amber Enterprises India zoomed 7.93 per cent, Blue Star surged 7.35 per cent, Voltas jumped 5.78 per cent, Havells India climbed 5.12 per cent, Whirlpool of India by 4.74 per cent, and Symphony by 3.69 per cent on the BSE.
Steel stocks such as JSW Steel, Tata Steel, and Jindal Steel rose between 2-3 per cent on Monday after the DGTR proposed a safeguard duty for 3 years. The GST rate cut also improved prospects for a demand uptick. JSW Steel closed at ₹1079.8 on the NSE, a new 52-week closing high. Tata Steel closed at ₹157.96, up 1.71 per cent.