Indian Stock Market Sees Mixed Reactions to GST Overhaul

Strategic Insights -

The Indian stock market witnessed a mixed day as some sectors, including auto, FMCG, and banking, gained momentum following the GST Council's tax revamp, while others like gaming, defence, and IT struggled. Despite a bullish day, these sectors faced significant losses, with gaming stocks bearing the brunt of a 40% GST on casinos and online betting. Defence stocks also failed to fire despite the government's strategic priority on domestic manufacturing. IT stocks, except for TCS, lagged the market, leaving behind a trail of mixed reactions across various sectors.

Key Takeaways:

  • Gaming stocks took a hit due to a 40% GST on casinos, online betting, and money games, with Delta Corp slumping 7% and Nazara Technologies slipping 2%.
  • Defence stocks failed to gain momentum despite the government's broader GST rationalisation, with the Nifty India Defence index falling 1.35% by afternoon trade.
  • IT stocks, except for TCS, traded lower in the intraday session, as the GST overhaul left behind a mixed trail.
  • Autos, FMCG, insurance, and consumer-facing companies saw gains following the tax revamp, with lower tax rates expected to bolster festive demand.
  • Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Mazagon Dock, Bharat Dynamics (BDL), and Garden Reach Shipbuilders were among the top defence index losers.
  • TCS was the lone gainer among IT stocks, while shares of Garden Reach and Cochin Shipyard, Solar Industries, and Midhani were among the top losers in the defence sector.

Statistics:

  • 40% GST on casinos, online betting, and money games hit India's listed gaming space hard.
  • Nifty India Defence index fell 1.35% by afternoon trade.
  • Hindustan Aeronautics (HAL) slipped 2.5%.
  • Bharat Electronics (BEL) fell 1.8%.
  • Garden Reach Shipbuilders and Cochin Shipyard lost 3.5% and 3.2%, respectively.
  • IT stocks lagged the market, except for TCS, which managed to stay in the green.

Sources:

  • IE Online Media Services Pvt. Ltd., (2025) distributed by Contify.com.