Voltas, PG Electroplast to Whirlpool - Consumer Durable Stocks Rise to 10% on GST -Rate Remindering

Consumer durable shares, including Voltas Ltd., Blue Star Ltd., PG Electroplast Ltd. and Amber Enterprises Ltd., rose to 10 percent on Monday, August 18, powered by the expectation of a possible reduction in GST tariffs on consumer duration. Other durable shares in consumers such as Dixon Technologies, MetroPrand, also suffered nearly 5 percent in the early morning session on Monday. What is behind the rally? Prime Minister Narendra Modi announced in his speech in Independence Day that the next generation GST reforms would be established before Diwali, which aims to reduce the tax burden on the public and MSMEs. Currently, high-screen air conditioners and televisions (more than 32 inches) attract a 28 percent GST rate, while items such as smartphones, refrigerators, smaller TVs, washing machines and microwaves are taxed at 18 percent. According to market experts, the center’s proposal is to lower GST tariffs to increase demand for products such as air conditioners and televisions. “The prime minister’s recent announcement of potential GST reforms is a significant positive. These measures are expected to reduce the cost of essential goods, which will increase the spending of consumers and corporate profitability. This is likely to improve market sentiment and attract fresh investment,” says Sugandha Sachdeva, founder of SS Wealthstreet. For the sector for consumer durable, the move is expected to affect the growth and profitability of demand. According to Kotak Institutional Equities, the rationalization of GST rates can cause a £ 2.4 Lakh Crore stimulus, with the largest beneficiaries likely to be car shares and durable consumers. Separately, Haier devices noted that such rationalization would significantly encourage demand, especially at a time when air conditioning prices will rise next year due to revised energy ratings, Mint reports. Blue Star also noted that although air conditioners face competition from various other categories, the change would still be very positive for sales. “The Coming GST meeting on September 9 is expected to bring significant reforms that could benefit different sectors. The government suggests that the tax heets of 12% and 28% will be eliminated, retaining only the 5% and 18% pages and set a new 40%” sentence tax “for chosen items such as tobacco and gutka. Make the manufacture of items, such as the air conditions, with the manufacture of items, such as the air supply, with the production of items. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions.