Rs 6 lakh crore boom in 1 month! How PM Modi's GST cuts shook the stock market
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With investors scrambling to realign portfolios around India's consumption revival story, auto and consumption-related stocks have emerged as the biggest winners one month after Prime Minister Narendra Modi announced GST rationalization on August 14, leading a spectacular Rs 6 lakh crore rally. The Nifty Auto index has surged over 11% in the past month, with the combined market capitalization of its 16 stocks exploding by Rs 5.13 lakh crore. Royal Enfield-maker Eicher Motors emerged as the biggest winner with a blistering 19% gain, while India's largest carmaker Maruti Suzuki rocketed 18% higher. Under the new GST rules, which comes into effect from September 22, small cars will now attract 18% GST vs 28-31% earlier, while large SUVs will be taxed at 40% vs 43-50% earlier. Similarly, GST on two-wheelers below 350 cc will now attract 18% GST instead of 28%. The consumer durables sector joined the party with equal fervor, as the Nif...