GST Council's Lifeline: Insurance Stocks Struggle Amid Tax Reforms
Insurance stocks witnessed a fall on profit-taking post an earlier rally after GST Council's announcement exempting all individual life insurance policies from GST. Shares of major insurance firms dipped despite positive market sentiment due to sweeping GST reforms boosting sectors like auto and consumer staples.
- Country:
- India
On Thursday, a majority of insurance stocks experienced declines amid profit-taking following a brief surge. The downturn came after the GST Council, during its 56th meeting, revealed exemptions for individual life insurance policies from the Goods and Services Tax (GST).
This announcement, made by Finance Minister Nirmala Sitharaman, initially boosted market optimism. Major indices started off strong, fueled by hopes tied to substantial GST reforms. However, profit-booking later in the session and lackluster performance by some heavyweight stocks tempered gains.
Despite the day's losses for several insurance firms, sectors like consumer, auto, cement, and healthcare stand to benefit directly from the GST changes, with retail banks and NBFCs seeing second-order growth prospects, according to industry insights.
(With inputs from agencies.)
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