In autos, analysts word that automobiles within the 28% tax slab might see decrease charges, lifting demand for two-wheelers, passenger automobiles and tractors. Shares reminiscent of Hero MotoCorp, Maruti Suzuki, M&M and Escorts Kubota are seen as the important thing gainers.
“Autos particularly two-wheelers stand to profit probably the most since value cuts can meaningfully affect shopping for choices, whereas RBI’s fee cuts might additional help automobile credit score development,” mentioned Christy Mathai, fairness fund supervisor, Quantum AMC.
The Nifty’s Auto index superior probably the most throughout sector indices on Monday, leaping 4.2%. Maruti Suzuki soared 8.9%, HeroMotoCorp surged 6% and M&M gained 3.5%. Client Durables, Realty and Metals indices rose between 1.8% and three.4%.
Whereas the cement sector stands to realize from improved affordability, a decrease tax burden in client and retail might spur discretionary spending, lifting demand throughout FMCG, way of life and staples.
“For client durables reminiscent of air conditioners, corporations are nonetheless grappling with excessive stock, which can have to be cleared earlier than new tax advantages translate into stronger demand,” mentioned Mathai. “Whereas cement might even see decrease GST as properly, although the extent of advantages to finish real-estate and infrastructure customers stays unsure.”Financials, significantly lenders with giant retail mortgage books, are seen as oblique winners as a GST reduce might drive credit score development in autos, housing and consumption. “Insurance coverage might additionally achieve if the long-pending GST discount on well being and common insurance coverage is applied,” mentioned Mathai.
