Major auto players like Hero MotoCorp, Maruti, and Bajaj Auto surged 5–8% today.
The rally was spurred by speculation of a GST cut from 28% to 18% on vehicles.
Lower tax rates would significantly enhance vehicle affordability and sales.
Investors viewed the cut as a structural demand booster for the sector.
Auto share indices vaulted to 10-month highs on renewed buying.
Advance orders and festive mileage are now being priced in.
Market optimism reflects both higher volumes and improved profit margins.
Analysts watch confirmation from official GST notifications closely.
Sectoral strength lifted heavyweight contributors in Sensex and Nifty auto indices.
Auto segment appears poised for a consumption-driven momentum swing.