Share market update: GST cut gives paints, electrical stocks a spark

NEW DELHI: Havells India (up 8.86 per cent), Bajaj Electricals (up 5.09 per cent), IFB Industries (up 4.84 per cent) and Dixon Technologies (India) (up 3.58 per cent) came alive on Monday as the GST Council slashed tax rates on paints, electrical and leather items, including many others.

Whirlpool of India (up 2.87 per cent), Crompton Greaves Consumer Electricals (up 2.73 per cent), Voltas (up 1.99 per cent) and V-Guard Industries (up 1.63 per cent) too got a new lease of life.

The Council this past weekend slashed GST rates 15 times to 18 per cent, from 28 per cent. The list included vacuum cleaners, washing machines, small TVs, fridge, laundry machines, paints and varnishes.


After the revised rates, only 35 items will be left in the 28 per cent bracket, from 226 goods as on July 1 last year.

Footwear, paint and hospitality stocks, including Bata India (up 5.43 per cent), Lemon Tree Hotels (up 2.95 per cent) and Asian Paints (up 2.12 per cent) also found traction.

Cigarette stocks, including Godfrey Phillips India (up 5.68 per cent) and ITC (up 3.89 per cent), were up. That's mainly because the GST Council did not revise the cess on cigarettes.

The equity markets were in positive terrain on buying in ITC, Hindustan Unilever, ICICI Bank, Asian Paints and IndusInd Bank.