GST Cut Boosts Snack Stocks; Delta Corp Share Price Falls on Casino Tax Hike

The Indian stock market today saw a sharp divide in sentiment. On one side, shares of snack makers such as Prataap Snacks, Bikaji Foods, and Gopal Snacks gained ground after a key GST cut. On the other, Delta Corp share price slipped nearly 7% following a tax hike on casinos.

Market Performance Snapshot

• Prataap Snacks: Up more than 3%
• Bikaji Foods: Gained around 2%
• Gopal Snacks: Rose close to 2%
• Delta Corp: Dropped nearly 7%

This clear contrast in stock movement reflects how taxation changes directly ripple through company valuations and investor sentiment.

GST Council Decision: What Changed

The GST Council meeting on September 3 brought in a relief package for snack makers. It decided to reduce GST rates on packaged and labeled namkeens, bhujia, mixtures, chabena, and similar edible items.

• Previous GST rate: 12%
• Revised GST rate: 5%

This sharp cut is significant because it directly reduces the tax burden on companies and consumers. The move is expected to spur demand in the snacks segment, making products more affordable and boosting sales volume for companies in this space.

Snack Makers Ride the Rally

Investors quickly priced in the positive impact of the tax cut. Prataap Snacks share price was the biggest gainer, rising more than 3% in a single session. Bikaji Foods and Gopal Snacks followed, each climbing around 2%.

The rise signals renewed optimism in the packaged food sector. Lower GST can translate into:

• Higher consumer demand
• Better margins for companies
• Stronger volume growth in upcoming quarters

This move is especially crucial for FMCG companies, where even a small percentage change in tax rates can reshape profitability.

Delta Corp: The Other Side of the Story

While snack companies celebrated, the mood turned sour for Delta Corp investors. The GST Council hiked the tax rate on admission to casinos, race clubs, and sporting events.

• Earlier GST rate: 28%
• Revised GST rate: 40%

For Delta Corp, India’s largest listed casino and gaming company, this was a heavy blow. The company’s stock plunged nearly 7%, breaking its recent two-day gaining streak.

This decline comes on top of earlier challenges faced by Delta Corp after the government introduced a ban on real-money online games. The back-to-back regulatory pressures have left the company struggling to regain momentum in the market.

Summary

The stock market today mirrored the two sides of taxation policy:

• Winners: Prataap Snacks, Bikaji Foods, Gopal Snacks—riding high on GST relief for packaged snacks.
• Loser: Delta Corp—dragged down by a steep GST hike on casinos and gaming.

The GST Council’s latest decision underlines how taxation can quickly shift investor sentiment. While FMCG names may benefit from higher demand and improved margins, casino operators like Delta Corp face steeper challenges ahead.