• Stock
• August 20, 2025

Top Stocks to Buy After GST Rate Cut in India – Auto, Cement, Retail & More

GST Rate Cut: Best Stocks to Buy in 2025The Indian stock market is buzzing after the government reduced GST (Goods and Services Tax) rates across multiple sectors. Lower tax rates mean cheaper products, higher demand, and better margins – making several companies attractive investment opportunities.Let’s look at the sectors and stocks that may benefit the most.Auto Sector – Strong Revival ExpectedThe biggest winner of the GST cut is the auto industry, especially two-wheelers and tractors. Two-Wheelers (below 125cc) → Hero MotoCorp, TVS Motors, Bajaj Auto Premium Cars (below ₹10 lakh) → Maruti Suzuki Tractors → M&M, Escorts GST reduced from 28% → 18%Broker View: SBI Securities expects a demand surge, especially in rural markets. Auto Parts – Cheaper Components Companies: Motherson Sumi, Endurance, Exide, Amara Raja, Bharat Forge, Gabriel India, Sundaram FastenersGST reduced 28% → 18%Spare parts becoming cheaper will drive both OEM and aftermarket demand. Cement Sector – Boost for Housing & Infra Companies: UltraTech Cement, Ambuja, Dalmia Bharat, Shree Cement, ACC, India CementsGST cut 28% → 18%ICICI Direct highlights strong growth potential as construction costs reduce. Consumer Durables – Festive Demand to Rise Companies: Voltas, HavellsGST reduced 28% → 18%Motilal Oswal expects strong sales in air conditioners, refrigerators, and home appliances. Pharma – Essential Medicines Cheaper Companies: Sun Pharma, Dr. Reddy’s, Cipla, Aurobindo PharmaGST cut 18% → 5%This makes medicines more affordable, increasing domestic demand. Retail Sector – Apparel & Footwear Apparel → Page Industries, Bata India, Trent, V-Mart (GST 12% → 5%) Footwear → Bata, Relaxo, Khadim India, Liberty Shoes (GST 12% → 5%) 📈 Centrum Broking expects strong demand recovery, especially in Tier-2 and Tier-3 cities.Hotel Sector – Travel & Tourism to Gain Companies: Indian Hotels, EIH, Lemon Tree, Chalet HotelsGST reduced 12% → 5%Hospitality is set for a strong revival with more affordable stays for travelers. Financials – Structural Winners (No GST Cut)Even though GST rates haven’t changed, financials remain strong long-term picks. Banks: SBI, HDFC NBFCs: Bajaj Finance, L&T Finance, Shriram Transport Insurance: HDFC Life, SBI Life, ICICI Lombard ICICI Direct recommends them as consistent wealth creators.Conclusion – Which Stocks Should You Buy?The GST rate cut is a game-changer for multiple industries. Investors should focus on:Auto & Auto Parts – demand revival playCement & Consumer Durables – housing & consumption boostPharma – essential and defensive betRetail & Hotels – strong comeback storyFor long-term portfolios, these sectors offer attractive entry opportunities. However, always do your own research or consult a financial advisor before investing. Pro Tip: Keep an eye on festive season demand – it will be the first real test of how strongly GST cuts impact consumer spending.