positive
Recently
GST Cuts Spark Auto Sector Rally Ahead of Festive Season
No Image
Auto stocks to benefit from reduced GST rates; festive demand may drive sales & margins.
India’s auto sector has seen strong earnings momentum following GST rate cuts. Stocks like Mahindra & Mahindra, TVS Motor, Hyundai Motor India, and Ashok Leyland are particularly well placed, according to analysts at Nomura. The reduction of GST on small cars and two-wheelers from 28% to 18% boosts affordability. With festival demand expected to rise, auto sales volume gains may follow. This policy change is likely to improve margins and revive discretionary spending in rural and semi-urban markets.