GST Rate Cut Hope Fuels Optimism in Equity Market

Domestic equity market staged a sharp rally on Monday, with investors piling into auto and consumer goods stocks amid rising hopes of GST reforms.

- ARSHAD KHAN @New Delhi

The Nifty Auto and Consumer Durables indices jumped 4% and 3%, respectively, driven by heavyweights such as Maruti Suzuki, Hero MotoCorp, and Voltas, which advanced between 6% and 9%.

Reports suggest that the GST Council is considering a significant overhaul of the current structure, moving from four tax slabs to a simplified two-rate system: 5% for essential items and 18% for most other goods. Luxury and sin products are likely to face a steeper levy of about 40%.