Lagatar24 Desk
New Delhi: The Indian stock market is set to witness movements in the auto and insurance sectors today, December 23, following significant announcements from the 55th GST Council Meeting held in Jaisalmer, Rajasthan. The meeting, chaired by Finance Minister Nirmala Sitharaman, introduced changes in GST rates, particularly on used electric vehicles (EVs) and life and health insurance premiums.
Key Market Developments
•Previous Market Performance:
On December 20, the Nifty 50 index closed 1.52% lower at 23,587.50 points, while the BSE Sensex dropped 1.49% to 78,041.59 points. Heavyweight stocks like TCS, Reliance, Infosys, Axis Bank, and HDFC Bank drove these declines.
•GST Changes:
The Council raised the GST on the sale of old and used vehicles, including EVs, from 12% to 18%, which is expected to influence the auto sector. Discussions on reducing tax rates on life and health insurance premiums were deferred, keeping the insurance sector under scrutiny.
Stocks to Watch
Insurance Sector Stocks
Investors should keep an eye on the following companies:
•Life Insurance: LIC, HDFC Life Insurance, SBI Life Insurance, ICICI Prudential Life Insurance.
•General Insurance: ICICI Lombard General Insurance, The New India Assurance, Star Health and Allied Insurance.
•Other Key Players: Medi Assist Healthcare Services, Niva Bupa Health Insurance, Go Digit General Insurance.
Auto Sector Stocks
The auto sector is likely to remain in focus, particularly these companies:
•Passenger Vehicles: Maruti Suzuki, Tata Motors, Mahindra & Mahindra.
•Two-Wheelers: Bajaj Auto, Hero MotoCorp, TVS Motor.
•Commercial Vehicles: Ashok Leyland, Eicher Motors.
•Electric and Specialized Vehicles: Olectra Greentech, Wardwizard Innovations, Hindustan Motors.
Investor Insights
The hike in GST on used EVs could affect the buying sentiment in the secondary market, impacting manufacturers’ stock performance. Meanwhile, the delay in decisions regarding insurance premium tax reductions might temporarily dampen the sector’s outlook but retains the potential for growth as policies evolve.
