18.08.202505:17:04UTC+00BSE Sensex Rises as Auto Stocks Rally on Tax Cut Hopes

On Monday morning, the BSE Sensex climbed by 1,060 points, or 1.3%, reaching 81,627, its highest level since July 24, and marking a third consecutive day of gains. This upswing was largely fuelled by positive movement in the auto sector, following reports that the Indian government might lower the goods and services tax (GST) on small cars. As reported by Reuters, referencing a government insider, there is a possibility of reducing the GST from the current 28% to 18% for small petrol and diesel vehicles. In reaction, the Nifty Auto index experienced a robust increase of 4.5%, its most significant rise in ten months. Leading this surge were Hero MotoCorp, which ascended by 7.5%, followed by TVS Motor at 7.4%, Maruti Suzuki at 7.2%, Mahindra & Mahindra at 4.6%, and Bajaj Auto at 4.5%. Other industries also showed commendable advancement; the consumer durables index rose by 3.1%, while the financial sector advanced by 1.8%, bolstered by a notable 6.6% increase in Bajaj Finance. Additionally, investor confidence was uplifted by reduced worries about disruptions in Russian oil supply, following a recent meeting between US and Russian leaders.