New Delhi, September 5, 2025 – The much-anticipated GST overhaul, dubbed GST 2.0, is already shaping up as a game-changer for India’s markets. Leading brokerage Motilal Oswal Financial Services has identified over 50 stocks likely to benefit—from autos, banking, and retail to quick commerce and consumer goods. The big question: Do any belong in your portfolio?
GST 2.0: A Growth Catalyst, Not Just Reform
This overhaul streamlines India’s complex four-tier GST system into two primary slabs—5% and 18%, while keeping a separate 40% “sin/luxury” bracket. Analysts widely view these changes as a pro-growth reform aimed at boosting consumption, reducing costs, and simplifying compliance.
Motilal Oswal underscores the broader implications:
- Fiscal impact is manageable, estimated at a ₹48,000 crore net hit—but offset by growth in tax base and economic activity.
- It’s a structural reform enabling India to transition toward a more consumption-led growth trajectory.
Autos to Tech: Who’s in the Spotlight?
Automobiles
GST cuts on two-wheelers (<350cc) and small cars (≤1,200cc petrol) push hatchbacks and scooters down to 18% from 28–30%. Motilal Oswal expects demand to rebound sharply with improved affordability.
Key auto names:
Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra (particularly SUVs and tractors), Bajaj Auto, Hero MotoCorp, Ashok Leyland
Banking & Financials
Banks and NBFCs are indirect beneficiaries—GST-led consumption growth could translate into more credit demand, better finance sector performance, and improved portfolio health.
Highlighted names:
HDFC Bank, ICICI Bank, IDFC First Bank
FMCG & Daily Essentials
Tax cuts on daily-use goods translate into lower retail prices, boosting consumer staples demand.
Top performers:
HUL, ITC, Britannia, Varun Beverages
Quick Commerce & Food Delivery
Despite the introduction of 18% GST on delivery charges, Motilal Oswal remains bullish. They foresee minimal impact, as platforms like Swiggy often absorb or pass on this cost. The expected festive surge could push growth rates north of 20%.
Watch stocks:
Swiggy — upgraded to Buy with 32% upside; Eternal (Zomato) — Buy maintained with 29% upside.
Cement, Hotels & Insurance
With items like cement and luxury hotel stays falling under lower GST, demand is expected to revive after months of cautious spending.
Beneficiaries include:
Ultratech Cement, Lemon Tree Hotels, HDFC Life Insurance
Sectors on Motilal Oswal’s Watchlist
- Auto (Maruti Suzuki, Hyundai, Mahindra & Mahindra)
- Banks (HDFC Bank, ICICI Bank, IDFC First Bank)
- FMCG (HUL, ITC, Britannia, Varun Beverages)
- Quick Commerce/Food Delivery (Swiggy, Eternal)
- Cement & Construction (Ultratech, JK Cement)
- Hotels (Lemon Tree, Indian Hotels)
- Insurance (HDFC Life, Niva Bupa)
- Energy & Renewables (Indraprastha Gas, Suzlon, Acme Solar)
Key Market Reactions
- Stocks like Mahindra & Mahindra saw ~9% gains thanks to multi-category benefits—from SUVs to tractors.
- FMCG giants surged up to 7% on expectations of a demand-led revival.
- Despite the overall consumption tailwind, sectors like coal and power are faltering due to GST hikes (5% to 18%).
Summary Table: GST Stocks to Watch
| Sector | Stocks Mentioned |
|---|---|
| Automobiles | Maruti, Hyundai, M&M, Bajaj, Hero, Ashok Leyland |
| Banks | HDFC Bank, ICICI Bank, IDFC First Bank |
| FMCG | HUL, ITC, Britannia, Varun Beverages |
| Quick Commerce | Swiggy, Eternal |
| Cement & Construction | Ultratech, JK Cement |
| Hospitality | Lemon Tree, Indian Hotels |
| Insurance | HDFC Life, Niva Bupa |
| Energy & Renewables | Indraprastha Gas, Acme Solar, Suzlon |
Final Word
Motilal Oswal’s analysis confirms GST 2.0 is a major catalyst for sectors across the board—from automobiles and banking to quick commerce and consumer staples. With the festive season in play and tax savings flowing through, these are stocks worth watching—and possibly owning.