Maruti Suzuki shares jumped sharply on Monday, leading the auto sector higher after expectations of GST reforms gave a big boost to investor sentiment. The broader market also cheered, with Sensex and Nifty both surging over 1% in early trade.
Strong Market Opening After Independence Day Break
After the Independence Day holiday, Indian markets opened with strong momentum.
- Sensex surged 1,062.91 points to 81,659.75
- Nifty50 jumped 356 points to 24,987.30
Auto and financial stocks were the clear winners, while IT and pharma lagged behind.
Maruti Suzuki Leads Auto Rally
At the opening bell, Maruti Suzuki shares soared 7.14%, making it the top gainer. Other major movers included:
- Bajaj Finance: +4.79%
- Mahindra & Mahindra: +3.81%
- Bajaj Finserv: +3.48%
Meanwhile, heavyweights like Larsen & Toubro (-0.57%), ITC (-0.43%), HCL Tech (-0.31%), Sun Pharma (-0.20%), and Infosys (-0.11%) slipped slightly, dragging IT and pharma indices lower.
GST Reforms Drive Optimism in Auto & Cement
Analysts say expectations of major GST reforms by Diwali are fueling the rally. Currently, auto and cement companies fall under the 28% GST slab, and any reduction to 5% or 18% is expected to significantly boost profitability.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said:
“GST reforms could act as a strong tailwind for auto and cement sectors. Stocks like Maruti, M&M, TVS Motors, Hero, and Eicher are likely to gain from potential tax cuts.”
Expert Opinion on Auto Stocks
Equity Strategist Kranthi Bathini highlighted that the auto industry has one of the highest tax burdens, especially Original Equipment Manufacturers (OEMs) like Maruti and Hyundai.
“Any reduction in GST is a huge positive for auto stocks. That’s why we’re seeing Maruti Suzuki, Hyundai, and M&M rise today.”
Insurance companies are also expected to benefit from the GST revision.
Global Headwinds Still a Concern
Despite strong domestic triggers, global uncertainties capped enthusiasm.
- India-US trade talks are delayed beyond August 27.
- The threat of a 50% tariff from the US (“Trump Sword”) remains a risk.
- Markets are also watching the Russia-Ukraine conflict talks at the White House.
Experts say while GST reform hopes are positive, external risks may limit short-term upside.
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ગુજરાતીમાં વાંચો:- Maruti Suzuki shares 8%નો જમ્પ: GST રાહતથી ઓટો સેક્ટર ચમક્યો, IT-Pharma કમજોર
