Auto Stocks Climb Amid GST Reforms
Auto stocks, particularly Mahindra & Mahindra, saw gains after new GST reforms reduced tax rates. The BSE auto index rose by 0.69%, driven by early optimism for tax simplification. Despite gains, profit-taking tempered increases, causing volatility in the market.
- Country:
- India
Auto stocks ended slightly higher with Mahindra & Mahindra leading at nearly 6% after profit-taking curbed earlier significant intra-day gains, sparked by GST rate cuts on essentials.
BSE auto index rose by 0.69%, yet the Sensex settled 150.30 points higher, influenced by initial optimism following GST reforms which trimmed tax slabs to 5% and 18%.
The reforms, effective September 22, lowered GST for certain vehicles, boosting auto stocks initially, but market volatility ensued due to anticipated profit-booking.
(With inputs from agencies.)
Advertisement
Google News