Stocks that are buzzing due to GST cut

The latest revision of GST rates is likely to have a positive impact on a couple of sectors including paints, electronic goods and hospitality. Major listed companies in these sectors were buzzing in early trade on Monday.

A major sector to benefit from the downward revision is paints stocks. The GST rate applicable on paints were revised from 28 per cent to 18 per cent. At around 9:50 hours, the stock of ASIAN PAINTS was at Rs. 1,436.65 per share, up by 2.85 per cent, Kansai Nerolac Paints was at Rs. 483.20 per share, up by 1.12 per cent, Shalimar Paints was at Rs. 124.00 per share, up by 6.80 per cent, Berger Paints was at Rs. 315.90 per share, up by 2.03 per cent on BSE. Asian Paints was among the top gainers on Nifty50 index.

The GST Council reduced the rate applicable on white goods like washing machines, refrigerators, small screen TV, and other electrical appliances from 28 per cent to 18 per cent. Reacting to the news the stock of white good manufacturers were buzzing on the bourses. At 9:58 hours, the stock of Havells India was quoting Rs. 600.80 per share, up by 7.38 per cent, Whirlpool India was at Rs. 1,575.00 per share, up by 3.16 per cent, Bajaj Electricals was at Rs. 553.55 per share, up by 1.83 per cent and Mirc Electronics was at Rs 31.0, up by 3.68 per cent on BSE.

The tax rate on footwear, leather items and other consumer durable items were also revised downward. Footwear stocks Bata, Khadim, Relaxo, Mirza International were trading positive with more than 3 per cent gains. At around 10:10 hours the stock of Bata was at Rs. 871.00 per share, up by 3.41 per cent, Khadim was at Rs. 785.00 per share, up by 4.21 per cent, Relaxo was at Rs. 796.00 per share, up by 3.59 per cent, Mirza International was at Rs. 96.0 per share, up by 2.95 per cent on BSE.