Sept 4 (Reuters) – Indian auto stocks jumped 2.2% to the highest level in nearly 11 months on Thursday after the government slashed GST (Goods and Services tax).
Auto shares were the top sectoral gainers on the benchmark Nifty 50 index, which was trading 0.7% higher.
On Wednesday, the GST panel, approved lower taxes on hundreds of consumer items ranging from soaps to small cars to spur domestic demand in the face of steep US tariffs.
The GST on small cars has been reduced to 18% from 28%.
Most stocks on the auto index were trading in the green, with Mahindra and Mahindra and Eicher Motors leading gains. The stocks were up 7.4% and 3.1%, respectively.
