Apparel and Real Estate Stocks Rally as GST Rate Cuts Boost Market Sentiment

Market Performance

The stock market on September 4 saw apparel and real estate companies shine after the GST Council’s latest decisions sparked renewed buying interest. The move, aimed at easing taxation on several items, triggered immediate momentum in key retail and property counters.

• The Nifty Realty Index climbed close to 1%, reaching around 898.05.
• Leading apparel and retail names like Trent, Vishal Mega Mart, and Shoppers Stop posted healthy gains.
• Real estate majors such as Godrej Properties, Raymond, Prestige Estates, Macrotech Developers, Oberoi Realty, Brigade Enterprises, and DLF also saw a noticeable uptrend.

The day’s trading clearly showed how policy decisions can swiftly influence sectoral performance on Dalal Street.

Main News: GST Council Sparks Market Buzz

The GST Council meeting, concluded on September 3, approved several reforms to the tax regime that directly impacted the retail and real estate space.

Key GST Changes:

• Apparel priced up to ₹2,500 will now attract 5% GST, compared to the earlier threshold of ₹1,000.
• Apparel and accessories above ₹2,500 will now be taxed at 18%, up from 12% earlier.
• Cement, a crucial input for the real estate sector, saw its GST rate slashed from 28% to 18%, lowering costs for developers and potentially boosting margins.

This dual relief—reduced GST for affordable apparel and lower input costs for builders—proved to be a strong catalyst for sector-specific stocks.

Company Details

Apparel & Retail Stocks

• Trent Ltd: Shares surged over 3%, hitting around ₹5,660 apiece. The stock has gained 7% in just five days and is up 13% in the past six months. Its current P/E ratio stands at nearly 127.5.
• Vishal Mega Mart: Gained around 3%, reflecting investor optimism in retail consumption.
• Shoppers Stop: Climbed nearly 2%, extending its steady run in recent weeks.

Real Estate Stocks

• Godrej Properties: Advanced close to 2%, trading near ₹2,048 per share.
• Raymond, Prestige Estates, and Macrotech Developers (Lodha): All moved up by about 2% each.
• Oberoi Realty, Brigade Enterprises, and DLF: Each recorded around 1% gains.

The synchronized rise across multiple developers underscores how a single policy move—GST reduction on cement—can ripple across the entire realty ecosystem.

Summary of the Article

The market action on September 4 highlighted how GST reforms can instantly influence investor behavior.

• Retail boost: Lower GST on affordable apparel makes branded fashion more accessible, fueling optimism for players like Trent, Vishal Mega Mart, and Shoppers Stop.
• Realty uplift: Slashing GST on cement improves cost efficiency for developers, lifting stocks like Godrej Properties, Prestige Estates, DLF, and Oberoi Realty.
• Broader sentiment: With the Nifty Realty index climbing and apparel names outperforming, the session was marked by optimism across consumer and real estate-linked sectors.

In short, the GST Council’s decisions acted as a direct trigger for both apparel retailers and property developers, leading to a notable surge in stock prices.