Stock Market: Why GST cuts before Diwali, Record bounce in stocks like Voltas and Blue Star

News India Live, Digital Desk: Stock Market: Shares of consumer durable companies in the Indian stock market saw a huge jump on Monday, August 18, 2025, in which shares of companies like Voltas, Blue Star, and PG Electroplast climbed up to 10%. The bounce is mainly due to the announcement of imminent changes in the Goods and Services Tax (GST) rates by Prime Minister Narendra Modi, which expects investors to increase consumer demand. The possibility of cutting the GST rates increased enthusiastic Minister Narendra Modi in his Independence Day speech that GST reforms of the next generation would be implemented before Diwali 2025. The main objective of these reforms is to reduce taxpayers, especially the tax burden falling on the general public and micro, small and medium enterprises (MSMES). Financial experts estimate that the government can bring most items into two main slabs of 5% and 18% by simplifying the existing four-level GST structure. This change can reduce the current 28% GST rate to 18% on the current 28% GST rate on durable items, such as air conditioner (ACS) and large television sets. Demands will be reduced, demand will increase the demand that this deduction will reduce the prices of consumer durable products, which will make them more economical for general consumers, which will make it more economical to the common consumer. Previously, the demand for these products is expected to appear as an increase. The increase in spot demand can improve the amount of sales and potential profits for manufacturers. Brokerage firm Jeffers and CLSA are also optimistic about the future of the entire consumer durables sector, including air conditioners, showing positive effects from GST rate reduction. Kotak Institutional Equity has estimated a potential boost of ₹ 2.40 lakh crore from GST rate rationalization. After this announcement, a strong investor perception was seen in the stock market. The Sensex jumped over 1,000 points, and the Nifty was trading above 24,950. The Consumer Durable Index recorded a gain of over 2.87%, with the shares of Voltas, Blue Star and PG Electroplasts prominently. This shows that investors are betting on the positive impact of upcoming tax reforms, hoping the entire consumer durable sector to get a big bounce.