Shares of Voltas Ltd jumped 6.22% to ₹1,354.20 in early trade on August 18, as investors bet on strong tailwinds from the government’s proposed GST rationalisation, which could make air conditioners and other white goods more affordable ahead of the festive season.
The government’s proposal to simplify the Goods and Services Tax (GST) structure by scrapping the 12% and 28% slabs and moving to a two-rate system of 5% and 18% is set to put several sector stocks in focus when markets reopen. While these changes are still at the proposal stage, Prime Minister Narendra Modi has assured that a “Diwali gift” in the form of GST rationalisation is on the way.
Consumer durables and white goods makers are likely to be among the biggest beneficiaries. Products such as air conditioners, refrigerators, washing machines and televisions currently taxed at 28% may fall to 18%, boosting festive season demand. Companies like Voltas, Havells, Whirlpool, Blue Star and Dixon Technologies could see renewed investor interest if reforms are implemented.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor before making investment decisions.