The markets are off early highs. The Sensex has fallen nearly 500 points from their early highs and the Nifty is struggling close to 25,800 levels. The small and midcaps have seen bigger cuts with the BSE Midcap down 0.21% and the Small Cap Index is down 0.19%.
However, there are big movers and shakers in trade today, given the GST rate overhaul late last evening. Let’s take a look at the big buzzing stocks
M&M
The Mahindra & Mahindra share price has jumped 6% in trade. The stock is one of the biggest gainers amongst the auto sector stocks. It is also the top gainer in the list of Mahindra Grouo stocks. The GST slabs have been reduced to a two-tier rate structure with cars below or equal to the 1200cc category are set to attract only 18% GST compared to 28% earlier. The fact that the new rates are going to be applicable from September 22 is also positive news, and the auto companies are hopeful of taking advantage of the festive sales as Navratri begins.
Bajaj Finance
The share price of Bajaj Finance is up nearly 5% in trade today. The new GST rate is seen as a big catalyst for insurance sector stocks. In the FAQs published by the Government on GST in the insurance sector, it clarifies that, “GST exemption on life insurance: The policies covered under the exemption recommended on life insurance are all individual life insurance policies, including term, ULIP, and endowment plans and reinsurance services thereof.”
On health insurance, “The policies covered under the exemption recommended on health insurance are all individual health insurance policies, including family floater plans and senior citizen policies and the reinsurance services thereof.”
Bajaj Finance is also the top gainer in the list of Bajaj Group stocks.
Ola Electric
If you check the list of automobile sector stocks, Ola is one of the biggest losers in trade today. Interestingly, the Ola Share price down 6% today after a whopping 59% rally in the last 1 month. Though the GST rates for the auto sector have been rationalised to a lower slab, EVs were already in the 5% category, so there is no major surprise for the key electric two-wheeler maker. Dealers anticipate some profit booking too.
Vishal Megamart
Motilal Oswal has given a Buy’ rating Vishal Mega Mart with a target price of Rs 170 against the current market price of Rs 147, implying a potential upside of 16%. The latest GST reforms could act as an additional tailwind for the retail sector.