The Indian stock market had a lively day today as the new GST rate cuts created a wave of optimism. The government’s move to cut GST rates worth about ₹48,000 crore gave a strong boost to everyday consumption sectors like automobiles, FMCG, cement, and consumer durables.
What Happened in the Market?
- Sensex jumped nearly 900 points in early trade but later cooled off as investors booked profits.
- Nifty held steady above 24,700, touching the 25,000 mark during the session.
- More than 140 BSE stocks hit 52-week highs, including Maruti, M&M, UltraTech Cement, and Nestlé India.
Who Benefited the Most?
🚗 Automobiles
- M&M rose over 6% as lower GST on SUVs and cars is expected to drive up sales.
- Maruti Suzuki also rallied, with affordability improving for small and mid-sized cars.
🛒 FMCG
- Nestlé India and other staples gained as food items and essentials saw lower tax rates.
- Cheaper household goods are expected to lift demand both in cities and villages.
🏗 Cement & Durables
- Cement and housing material stocks gained on hopes of stronger demand in construction.
- Consumer durables like ACs and refrigerators also looked attractive after the tax cuts.
Key Stock Buzz
- Bajaj Finance & Bajaj Finserv were up ~4% on hopes of faster loan growth.
- Apollo Hospitals saw steady buying interest.
- Usha Martin made headlines as Peterhouse Investments sold a big stake.
- India Glycols cheered investors by announcing a 100% dividend.
Market Technicals
- Support: 24,500–24,600 (Nifty)
- Resistance: 24,900–25,000
- Technical scans showed momentum in Coal India, SBI, and M&M.
Global Factors
The US Federal Reserve maintained a dovish stance, with a likely rate cut in September. This supported Asian markets, and India benefitted from positive foreign inflows.
What Should Investors Do?
- Near Term: Expect ups and downs as traders book profits after sharp gains.
- Medium Term: Auto, FMCG, and cement sectors look promising with stronger demand on the horizon.
- Long Term: GST rate cuts reforms strengthen India’s consumption story, making these sectors strong bets for steady growth.
👉 In short: GST rate cuts is a game-changer for consumption-led growth. While markets may fluctuate in the short run, Auto and FMCG stocks seem well set to ride the demand wave.
https://rxwealthcreation.com/markets-dip-ahead-of-gst-meet-auto-power-in-focus/
