Stocks to Watch on September 4, 2025: Maruti Suzuki, HDFC Life, and Others in Focus After GST Rate Cuts

In a major step to boost consumption and simplify taxation, the GST Council has approved a new 2-rate structure and slashed GST rates across several sectors. This decision is expected to have a strong impact on the Indian stock market, especially on companies directly benefiting from lower tax rates. 

Market Performance on Wednesday

Ahead of the announcement, Indian stock markets closed higher on Wednesday. The NSE Nifty 50 gained 135 points (0.55%) to end at 24,715, while the BSE Sensex rose 410 points (0.51%) to close at 80,568.

Auto Sector Stocks Like Maruti Suzuki and Bajaj Auto in Focus

Auto stocks are expected to rally today. The GST on small cars (under 1200 cc) has been cut from 28% to 18%. This is positive news for companies like Maruti Suzuki, M&M, and Tata Motors.

Two-wheeler companies will also benefit. Bikes below 350 cc, like those made by Bajaj Auto and TVS Motor, will now attract just 18% GST. However, Eicher Motors, which makes Royal Enfield bikes above 350 cc, may see less impact since these are still taxed higher.

FMCG and ITC

While GST has been reduced on many FMCG products, cigarettes will still be taxed at 40%. ITC, a major player in both cigarettes and FMCG, may see mixed reactions. The company is investing ₹20,000 crore in expanding its FMCG, agriculture, and paperboard businesses, hoping to tap into growing rural and urban demand.

Insurance Stocks Rise

Shares of insurance companies such as HDFC Life, SBI Life, and Niva Bupa are expected to do well. The GST on individual life and health insurance has been fully removed. Reinsurance services are now also GST-exempt.

Agriculture and Rural Equipment

Agriculture equipment like tractors, threshers, harvesters, and composting machines will now attract only 5% GST, down from 12%. This could boost rural demand and benefit agriculture-related stocks.

Conclusion

The GST cuts are a strong move by the government to simplify taxes and boost consumption. Sectors like auto, insurance, agriculture, and FMCG are expected to benefit the most. Investors will be closely watching how these companies react to the news in today’s trading session.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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