Sensex, Nifty join GST Council’s early ‘Diwali gift’ celebrations: Mahindra, MRF, Bajaj, TVS, Hero stock performance today

Indian stock markets began their festive celebrations early as Prime Minister Narendra Modi’s announcement of a “Diwali gift” came to pass an entire month earlier, with the announcement of the latest reforms to the Goods and Services Tax (GST).

Led by auto stocks, benchmark indices Sensex and Nifty jumped in early trade on Thursday. The 30-pack BSE Sensex soared by 888.96 points to 81,456.67 in opening trade, while the 50-share NSE Nifty jumped 265.7 points to 24,980.75.

At its peak, Mahindra & Mahindra led the Sensex with a 7.5 per cent jump. Other gainers include Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors, and UltraTech Cement.

In the BSE, MRF shares hit a high of 1,55,554.95 apiece before tanking to sub-zero per cent levels. Baja Auto soared as much as Rs 9,349.95 per share, while TVS hit a Rs 3,543.05 per share high.

ALSO READ | From IPL tickets to SUVs, all your GST questions answered by the Finance Ministry 

India’s largest two-wheeler maker Hero MotoCorp found its peak at Rs 5,539.60 apiece. In morning trade, MRF was up 3.39 per cent, Bajaj Auto rallied by 2.56 per cent, Apollo Tyres by 2.49 per cent and Tata Motors by 2 per cent.

However, by noon, heavy profit booking in most of these stocks saw them come back to almost flat levels.

Auto stocks initially jumped on the latest GST reforms, in which small cars and entry-level bikes are set to get cheaper with their GST rate slashed to 18 per cent from the earlier 28 per cent.

The latest changes to GST are expected to lift a volley of stocks across sectors. According to a  Motilal Oswal Financial Services report,  “domestic-focused stocks” such as Maruti Suzuki, Mandra and Mahindra, Ashok Leyland, Britannia, Ultratech, JK Cement, Havells, Voltas, Amber, Metro, Trent, LemonTree, Indian Hotels, Niva Bupa, HDFC Life, IGL, Acme Solar, Suzlon, Swiggy, Delhivery, ICICI Bank, HDFC Bank, Bajaj Finance, Shriram Finance, and so on are likely to benefit in the coming festive season.

“The announcement of GST reforms on construction materials is a welcome step for the broader economy. The most direct beneficiaries will be B2C sectors such as FMCG and exempted service providers, where GST input tax credit cannot be fully claimed. For these segments, the lower rate translates into genuine cost savings and improved affordability for consumers. However, for the coworking sector, the real advantage lies in improved cash flow management and working capital efficiency. As coworking operators, we invest heavily in infrastructure and fit-outs. Although GST input credits are available, the upfront outflow of GST has historically placed pressure on working capital. This will help coworking operators plan growth more efficiently and expand further. Overall. this will support quicker scaling and enhance the value proposition for our clients,” said Manas Mehrotra, founder of coworking platform 315Work Avenue.

“The real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. Hence, the reduction in GST on cement and other key building materials is a landmark reform and will provide a much-needed relief for the real estate sector in the ongoing festive season. This steep reduction in tax will help lower overall construction costs to some extent and ease cost pressures across the sector, thereby creating a more efficient and investor-friendly environment. Overall, this GST rationalisation will help buyers gain better affordability and more confidence to invest in houses, especially in the affordable and mid-segments where cost sensitivity is high. A rationalised GST regime, therefore, holds promise not only for individual households seeking security and stability through homeownership but for the economy at large, making housing the driver of sustainable growth. Overall, we definitely see this as a progressive step for India’s long-term growth story,” pitched in Ramani Sastri, Chairman and MD of Sterling Developers.

Business