GST 2.0: Impact on Indian Stock Market Today – Key Beneficiaries from FMCG to Automobiles

Market Performance

The Indian stock market opens to a big policy reset today as GST 2.0 takes effect from 22 September. The reform introduces a simpler two-slab structure and is estimated to unlock nearly ₹2 trillion in extra consumption demand.

Instead of a uniform market-wide rally, the attention is on sector-specific movements, with FMCG, automobiles, consumer durables, cement, logistics, and retail stocks in focus.

Main News: GST 2.0 Reshaping Consumption & Costs

Back in 2017, GST replaced multiple regional taxes with one unified system. Eight years later, GST 2.0 is being positioned as the next leap forward for India’s consumption economy.

Key highlights:

• New two-slab GST system: 5% and 18%.
• Daily-use products like toothpaste, shampoo, and talcum powder shift from 18% to 5%.
• Electronics like TVs and ACs move from 28% to 18%.
• Small petrol hybrid cars see GST reduced from 28% to 18%.
• Luxury electric vehicles above $46,000 face a hike, with GST going up to 40%.

These changes are expected to reduce costs for households, encourage spending, and improve affordability in critical sectors.

Company Details: Stocks in Focus

FMCG Sector

• Hindustan Unilever and ITC may gain as essentials become cheaper under the new 5% GST slab.

Consumer Durables

• Voltas and Havells stand to benefit as GST on ACs and TVs drops from 28% to 18%.

Automobile Sector

• Tata Motors and Maruti Suzuki get a boost from reduced GST on small petrol hybrid cars.
• Tesla and Mercedes-Benz luxury EVs face higher GST rates up to 40%, which could weigh on premium demand.

Cement Sector

• UltraTech Cement and JK Cement may see improved demand due to lower GST-driven costs in construction.

Logistics & Retail

• Delhivery, Swiggy, and Zomato could benefit as reduced GST rates encourage higher consumption and order volumes.
• Bajaj Finance may see stronger consumer durable lending as affordability improves.

Summary of the Article

GST 2.0 is not just a tax revision—it’s a push to India’s consumption-led growth story.

• FMCG majors like Hindustan Unilever and ITC get a tailwind from lower GST on everyday products.
• Consumer durable leaders Voltas and Havells gain as appliances become cheaper.
• Automobile firms Tata Motors and Maruti Suzuki benefit from lower GST on hybrids, while Tesla and Mercedes-Benz face higher GST for luxury EVs.
• Cement companies UltraTech and JK Cement may see demand lift as construction costs ease.
• Digital platforms like Delhivery, Swiggy, and Zomato, along with Bajaj Finance, could ride the wave of increased consumption.

Today’s GST reform marks a turning point—shifting the spotlight onto specific sectors and companies rather than the broader market.