Market Performance
The stock market opened on a buoyant note on September 4, and footwear stocks quickly stole the spotlight. A wave of buying lifted several names in the sector, with gains of up to 10.5% seen in early trade.
Investors cheered the GST Council’s reform announcement, which brought tax relief to the footwear industry. This policy shift not only brightened sentiment but also fueled hopes of stronger consumer demand ahead.
- Bata India jumped 7.3%, touching an intraday high of ₹1,247
- Metro Brands advanced 6%, reaching ₹1,242
- Campus Activewear led the rally with a sharp 10.5% surge
- Mirza International and other peers like Relaxo Footwears, Khadim India, Lehar Footwears, and N B Footwear also posted 1–6% gains
This rally marked one of the strongest sectoral moves of the session.
Main News: GST Cut Ignites Investor Optimism
On Wednesday, September 3, the GST Council, chaired by Finance Minister Nirmala Sitharaman, approved a much-awaited cut in GST rates on footwear priced up to ₹2,500.
- Earlier, the 5% GST benefit applied only to pairs priced up to ₹1,000
- Now, the 5% slab extends to footwear up to ₹2,500, down from the earlier 12% rate
This decision is part of a broader tax simplification, where four slabs (5%, 12%, 18%, and 28%) were merged into just two slabs: 5% and 18%.
A special 40% GST rate will apply to certain luxury and sin goods. The new structure, effective from September 22 (Navaratri), is seen as one of the most significant reforms since the GST rollout in 2017.
Company Details: Footwear Stocks in Focus
Bata India (₹1,247 intraday high, +7.3%)
Bata India was among the biggest beneficiaries of the GST relief. The stock climbed sharply, reflecting optimism around better affordability for mid-range footwear and potential sales volume growth.
Metro Brands (₹1,242 intraday high, +6%)
Metro Brands, known for its premium yet accessible range, gained strong traction. The revised GST rate may expand its customer base, especially in the mid-price category.
Campus Activewear (+10.5% intraday surge)
Campus Activewear delivered the most impressive move of the day. Its focus on youth-driven, affordable sportswear aligned perfectly with the revised tax bracket, igniting strong investor demand.
Mirza International (+1–6% range with peers)
Mirza International, alongside other mid-tier players like Relaxo, Khadim India, Lehar Footwears, and N B Footwear, also saw steady buying interest.
Broader Market Impact
The GST reform isn’t just about footwear. By cutting slabs and simplifying the tax structure, the council has created a ripple effect across sectors:
- Daily essentials may become cheaper
- Automobiles (cars and bikes) could see a boost in demand
- Electronics are expected to benefit from lower prices
Coupled with other fiscal measures like RBI rate cuts and income tax rebates, the move positions the market for stronger consumer-led growth in the coming months.
Summary
The footwear rally on September 4 was a direct reflection of investor optimism following the GST Council’s bold tax reforms. With Bata India, Metro Brands, Campus Activewear, and Mirza International leading the charge, the sector became a showcase of how policy decisions translate into immediate market action.
As the new tax rates roll out from September 22, the footwear industry—especially in the mid-priced segment—is poised to gain from improved affordability, while the stock market continues to respond positively to government reforms.
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