Why Small & Mid Stocks May Surge As Gst Cuts Boost Rural Retail And Autos

A potential rotation away from large caps may shine the spotlight on small- and mid-cap stocks, especially those tied to rural consumption. Experts believe that GST cuts are likely to benefit rural India more than urban markets, making rural-focused retail chains strong contenders for near-term outperformance. Autos are also set to deliver improved numbers as the next quarter fully reflects the GST rate reduction, boosting both sales and profitability. Within the auto space, passenger vehicles (PVs) appear positioned for stronger momentum compared to two-wheelers, thanks to sustained demand and clearer profit visibility. As market money redistributes, small-mids, rural retail, and PV-driven auto players may emerge as key winners in the upcoming cycle.