Voltas, Blue Star Lead Indian Stock Surge on GST Cut Hopes

Indian consumer-durable and automobile stocks rallied on 18 August amid growing expectations that the government’s long-discussed “GST 2.0” overhaul will lower tax rates on air-conditioners, refrigerators and small cars. Voltas, Blue Star, PG Electroplast and Amber Enterprises climbed between 8% and 12%, helping the BSE Consumer Durables Index outpace the broader market. Brokerage reports and domestic media said policymakers are considering cutting the 28% Goods and Services Tax slab on select products to 18% as part of a wider rate rationalisation. The optimism spilled into the auto sector, where Maruti Suzuki gained as much as 7.7% to a record high, while Hyundai-linked counters, Mahindra & Mahindra and Ashok Leyland added 4–6%. The benchmark Sensex advanced about 893 points and the Nifty 50 topped 24,900. Analysts at Morgan Stanley said lower levies could extend the cyclical up-turn for carmakers and spur consumption. The finance ministry has not commented on the timing or scope of any changes, leaving the rally driven largely by anticipation rather than confirmed policy.