5 Auto Stocks Jump on GST Relief Buzz: Maruti, Ashok Leyland, TVS Motors, Hero MotoCorp & M&M Hit 52-week Highs

DSIJ Intelligence-2 / 18 Aug 2025/ Categories: Mindshare, Trending

5 Auto Stocks Jump on GST Relief Buzz: Maruti, Ashok Leyland, TVS Motors, Hero MotoCorp & M&M Hit 52-week Highs

The Nifty Auto index surged nearly 4.5 per cent, marking its sharpest single-day gain in over a year and touching a 10-month high.

The Indian stock market opened the week on a strong note, with the auto sector leading Monday’s rally. The Nifty Auto index surged nearly 4.5 per cent, marking its sharpest single-day gain in over a year and touching a 10-month high. The rally was triggered by news that the government is considering a cut in goods and services tax (GST) on small cars from 28 per cent to 18 per cent, as part of broader consumption tax reforms.

Why Auto Stocks Surged?

The proposal on GST cuts fueled investor optimism, driving all 15 companies on the auto index into positive territory. Market volumes saw a sharp uptick, reflecting renewed buying interest across both Large-Cap and Mid-Cap auto stocks.

Maruti Suzuki: Maruti Suzuki share price climbed over 7.9 per cent, touching a new 52-week high. The stock witnessed its biggest intraday gains in five years, with volumes hitting a 3-month high.

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Ashok Leyland: Ashok Leyland surged 8.72 per cent to a fresh 52-week high. The company also confirmed a final dividend of Rs 6.25 per share for FY25, including two interim payouts earlier. The dividend announcement further supported the stock’s momentum.

TVS Motor Company: TVS Motors gained nearly 8 per cent in the opening trade, scaling an all-time high of Rs 3,255.8 on the NSE. The company recorded its steepest intraday gains in four years, highlighting strong momentum in the large-cap auto segment.

Hero MotoCorp: Hero MotoCorp rallied 8.73 per cent to Rs 5,119 per share, hitting a 9-month high. Trading volumes surged to a 3-month peak, reflecting strong investor participation.

Mahindra & Mahindra: Mahindra & Mahindra advanced more than 5 per cent, also touching an all-time high. The announcement of GST reform proposals further strengthened sentiment around the company’s growth outlook.

The auto sector outperformed all other indices on Monday, as investors priced in the potential GST cuts on small cars. Stocks like Maruti Suzuki, Ashok Leyland, TVS Motors, Hero MotoCorp, and Mahindra & Mahindra led the rally, highlighting strong confidence in the sector’s growth trajectory.

Disclaimer: The article is for informational purposes only and not investment advice.