- The Daily Rip India by Stocktwits
- Posts
- (Early) Diwali Gift For The Middle Class
(Early) Diwali Gift For The Middle Class

Tale of the Tape
Good evening ya’ll!
Nifty and Sensex gave up most of their day’s gains as the hype over big GST cuts kinda fizzled out. There was some profit-booking; many sectoral indices are up +5% since PM Modi’s Independence Day announcement. But there are also questions of execution, so we’ll see how it pans out. Broader markets were under pressure, with Midcaps and Smallcaps ending down -0.7% each. 359 stocks in the NSE 500 saw cuts.
Most sectors ended in the red. PSU Banks (-1.1%) and Energy (-1%) witnessed the most selling pressure. Auto (+0.9%) and FMCG (+0.3%) bucked the trend.
Today’s issue of the Daily Rip is a GST special: we look at the big announcements & surprises, Is the GOI getting less aggressive on taxes? top buzzing stocks and more.
Honourable Mentions:
Aptus Value Housing Finance (-1%) was in focus after 6.09 cr shares (12.2% equity) changed hands in a big block deal; reports say PE firm WestBridge Capital was the likely seller. Rolex Rings board approved a 1:10 stock split.
Check out the NSE 500 heatmap:

Nifty | 24,734 | FLAT |
Sensex | 80,718 | +0.2% |
Bank Nifty | 54,075 | FLAT |
GST
Winners From GST 2.0!

The GST bonanza is here! The GOI has slashed taxes on hundreds of goods & services, all set to take effect from September 22. That’s ~$5 billion in relief for consumers and an even bigger bump in spending across sectors. Here’s a look at the stocks that will benefit and some surprises as well.
1) Auto: The biggest winner with rates dropping to 18% (vs 28% earlier) and just what the industry needs to escape from its current slowdown. FYI - cars across segments will benefit. Small cars will see a ~11%-12% price drop while bigger vehicles could see a ~8% reduction. It’s no surprise that Mahindra & Mahindra (+6%) was the top Nifty gainer as it benefits both on the SUV AND tractor front. Companies with a big hatchback portfolio like Maruti Suzuki and Tata Motors also gain big time.
2) FMCG: Classic butter-soap-biscuit firms like Britannia, Nestle India and HUL will see their products be taxed at 5% or 0% (vs 12% earlier). But with taxes being cut on bigger consumer durables also (ACs, TVs etc), it’s also a big positive for Amber Ent, PG Electroplast, Voltas and Havells.
3) Misc: The list is endless, but raising the 5% GST threshold on garments worth Rs 2,500 will help value clothing retailers like Trent, Bazaar Style Retail and Vishal Mega Mart. Cement and real estate firms will also get some relief after GST on cement was cut to 18% (vs 28% earlier). Fun fact: niche sectors like stationery saw their burden drop to 0% (vs 12% earlier). Which is why Linc and DOMS Industries rallied between +4% and +8% intraday.
Finally, there are some pleasant and unpleasant surprises. For starters, all that nonsense about GST hikes on footwear & garments priced above Rs 2,500? Turned out to be false. Ditto for the proposed hike on EVs. And while sweeping exemptions on life & health insurance is a good step, hold your horses as there's input tax credit stuff that needs to be worked out first.
What’s your take on this? |