GST rate cut triggers rally in footwear, paint, consumer durable stocks

The recent move to cut rates, analysts say, should help boost sales, particularly in the consumer durable segment over the next few months

Shares of paint, consumer durables and footwear companies rallied by up to 10 per cent on the BSE on Monday, after the GST Council reduced tax rates from 28 per cent to 18 per cent on a range of daily use products and appliances.

Among items on which GST was reduced on Saturday include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium-ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol.

The development triggered a 5 per cent to 9 per cent rally in Bata India, Relaxo Footwears, Mirza International, Khadim India, Superhouse and Liberty Shoes from the