GST Reform Buzz Lifts Consumption

Buzz around GST rationalisation into 5% and 18% slabs lifted consumption, cement, ACs, footwear and insurance stocks on August 18. FMCG majors like ITC, Dabur, Britannia, Marico and Nestlé could gain from tax cuts on dairy, beverages and packaged foods.

Voltas and Havells may benefit from higher AC demand, while Relaxo, Bata and Metro gain from cheaper footwear. Cement players could see improved sentiment if GST is cut from 28% to 18%. Health and life insurers like Star Health, Niva Bupa and Max Financial also stand to benefit from possible GST relief.