Indian Stocks Rally on GST Reform Hopes; Blue Star, Maruti Suzuki, Hyundai, Jupiter Wagons Gain Amid Cotton Duty Removal and Defence Stock Declines

Indian stock markets saw notable activity driven by expectations of Goods and Services Tax (GST) rate rationalisation and reforms, particularly impacting consumer durable and automobile sectors. Shares of Blue Star, Voltas, and PG Electroplast surged up to 10%, with Blue Star gaining 6% intraday, while Maruti Suzuki, Hyundai, and Mahindra & Mahindra (M&M) hit record highs amid hopes of GST cuts on small cars to 18%, benefiting models like Maruti Suzuki Wagon R, Tata Tiago, and Hyundai Grand i10. Morgan Stanley highlighted Maruti, Ashok Leyland, and M&M as well-positioned to benefit from a low-tax environment driving an auto sector upcycle. Experts recommended buying stocks including Deepak Nitrite, Ashok Leyland, Tata Motors, Hero MotoCorp, and TVS Motor. Amber Enterprises India, Voltas, and Havells shares gained up to 9% following GST 2.0 reforms. Meanwhile, cotton and textile stocks such as Vardhman Textiles and Ambika Cotton rallied up to 9% after the government removed an 11% import duty on cotton. In contrast, Glenmark Pharma reported an 86% year-over-year profit decline to ₹47 crore in Q1, leading to a 4% share price drop, and was among the top midcap losers alongside Suzlon Energy and Deepak Nitrite. Godfrey Phillips India shares surged over 13%, nearing an all-time high despite concerns over a proposed 40% sin tax. Defence stocks Bharat Dynamics, GRSE, and HAL fell up to 3% following a meeting between Donald Trump and Volodymyr Zelenskyy. PTC Industries secured a ₹100 crore order from Bharat Electronics and a ₹110 crore order from BrahMos Aerospace, boosting its shares by up to 9%. Jupiter Wagons shares rallied up to 13% after its subsidiary secured a ₹215 crore contract for Vande Bharat train wheelsets. Vodafone Idea shares rose over 6% amid reports of potential relief measures and AGR dues reduction by the government, with the Prime Minister's Office reviewing the situation. IDBI Bank shares surged 8% following an update from DIPAM on its divestment, expected to close this fiscal year. Aditya Birla Fashion & Retail (ABFRL) shares gained 5% despite quarterly losses, and Zee Entertainment saw a spike on short covering with expectations of Onam advertising spending growth in high single digits. Hyundai Motor Group announced plans to advance software-defined vehicle (SDV) technology through collaboration and expanded its Los Angeles office presence. Overall, the market reflected cautious optimism with sector-specific gains driven by policy expectations and corporate order wins, while some midcap stocks faced pressure due to earnings misses and geopolitical concerns.