<p>New Delhi: Expectation of reduction in GST on a number of goods and services as part of the rate rationalisation plan, announced by Prime Minister Narendra Modi in his independence day speech, sparked a rally in the stock markets on Monday with key indices Sensex and Nifty gaining nearly 1 per cent.</p>.<p>The stock market rally was led by auto, metal, realty and consumer durables stocks. Share price of India’s largest car maker Maruti Suzuki surged by around 9 per cent to Rs 14075.30. Mahindra & Mahindra rallied 3.54 per cent to Rs 3380.95 while Tata Motors jumped 1.78 per cent to Rs 676.40.</p>.<p>According to sources, GST on small cars is likely to be reduced to 18 per cent from the current 28 per cent plus surcharges. Morgan Stanley said in a note that Maruti Suzuki and Mahindra & Mahindra are likely to be the biggest beneficiaries of the GST rate rationalisation.</p>.Nirmala Sitharaman to address crucial meeting on August 20 to put forth Centre's GST rate cut proposal.<p>“The positive sentiment was driven by GST reform proposals, easing concerns over crude oil prices, and a sovereign rating upgrade, which together lifted investor confidence,” said Ajit Mishra, Senior Vice President-Research, Religare Broking.</p>.<p>Benchmark Sensex of the BSE jumped 0.84 per cent or 676.09 points to close at 81,273.75 points. The Sensex surged to a high of 81,765.77 points in the intra-day. Nifty 50 of the NSE rose 245.65 points or 1 per cent to 24,876.95 points. </p>.<p>Sector-wise, all major indices, barring IT, contributed to the up move. Broader markets also joined the rally, as midcaps and smallcaps advanced between 1.14 per cent and 1.43 per cent.</p>.<p>"The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety," said Vinod Nair, Head of Research, Geojit Investments Limited.</p>.<p>"The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms. In H2 FY26, we expect the consumption-led sectors to show some traction on account of demand revival," Nair added.</p>.<p>Speaking from the Red Fort on the occasion of the 79th Independence Day, Prime Minister Narendra Modi announced that the government will come out with the next-generation GST reforms and lower tax burden on common man by Diwali.</p>.<p>According to sources, the GST is likely to be restructured and simplified with just two main tax slabs of 5 per cent and 18 per cent from the current 4-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. GST on small cars and two-wheelers is expected to be lowered to 18 per cent.</p>
<p>New Delhi: Expectation of reduction in GST on a number of goods and services as part of the rate rationalisation plan, announced by Prime Minister Narendra Modi in his independence day speech, sparked a rally in the stock markets on Monday with key indices Sensex and Nifty gaining nearly 1 per cent.</p>.<p>The stock market rally was led by auto, metal, realty and consumer durables stocks. Share price of India’s largest car maker Maruti Suzuki surged by around 9 per cent to Rs 14075.30. Mahindra & Mahindra rallied 3.54 per cent to Rs 3380.95 while Tata Motors jumped 1.78 per cent to Rs 676.40.</p>.<p>According to sources, GST on small cars is likely to be reduced to 18 per cent from the current 28 per cent plus surcharges. Morgan Stanley said in a note that Maruti Suzuki and Mahindra & Mahindra are likely to be the biggest beneficiaries of the GST rate rationalisation.</p>.Nirmala Sitharaman to address crucial meeting on August 20 to put forth Centre's GST rate cut proposal.<p>“The positive sentiment was driven by GST reform proposals, easing concerns over crude oil prices, and a sovereign rating upgrade, which together lifted investor confidence,” said Ajit Mishra, Senior Vice President-Research, Religare Broking.</p>.<p>Benchmark Sensex of the BSE jumped 0.84 per cent or 676.09 points to close at 81,273.75 points. The Sensex surged to a high of 81,765.77 points in the intra-day. Nifty 50 of the NSE rose 245.65 points or 1 per cent to 24,876.95 points. </p>.<p>Sector-wise, all major indices, barring IT, contributed to the up move. Broader markets also joined the rally, as midcaps and smallcaps advanced between 1.14 per cent and 1.43 per cent.</p>.<p>"The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety," said Vinod Nair, Head of Research, Geojit Investments Limited.</p>.<p>"The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms. In H2 FY26, we expect the consumption-led sectors to show some traction on account of demand revival," Nair added.</p>.<p>Speaking from the Red Fort on the occasion of the 79th Independence Day, Prime Minister Narendra Modi announced that the government will come out with the next-generation GST reforms and lower tax burden on common man by Diwali.</p>.<p>According to sources, the GST is likely to be restructured and simplified with just two main tax slabs of 5 per cent and 18 per cent from the current 4-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. GST on small cars and two-wheelers is expected to be lowered to 18 per cent.</p>