Nifty Auto up 5% in one week on GST cut hopes

Reports indicating that the Goods and Services Tax (GST) rate for small automobiles and two-wheeler internal combustion engine (ICE) vehicles may be lowered from the current 28 percent to 18 percent have caused the auto index to rise by more than 5 percent this week. According to stockbroker Nomura, Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, and TVS Motor stand to gain the most from the proposed GST drop, which has raised market optimism. The firm claims that such a cut would lead to a significant increase in Indian car equities.