Shares of Trent Ltd gained 2.78% on Monday, August 18, closing at ₹5,520, after Prime Minister Narendra Modi said the government will roll out next-generation Goods and Services Tax (GST) reforms by Diwali. The move is expected to ease the tax burden on consumers and micro, small and medium enterprises (MSMEs), spurring festive season demand.

Brokerages have identified retail, consumer, and auto names as potential beneficiaries of the reform. Jefferies expects GST rationalisation in the fourth quarter of the calendar year, with likely cuts for cement, two-wheelers, and air-conditioners from 28% to 18%. Other categories that may benefit include insurance, hybrid cars, processed foods, garments, and footwear.

Citi has highlighted medicines, processed foods, non-alcoholic beverages, apparel, white goods, insurance, and cement as possible winners. It estimates that household-oriented stimulus—including GST cuts, income tax relief, and lower lending rates—could add 0.7–0.8% of GDP in FY26, boosting FY27 earnings outlooks.

Goldman Sachs noted that companies with significant exposure to the 12% GST slab could gain the most. For Trent, apparel priced above ₹1,000—accounting for about one-third of its sales, largely through Zudio stores—may see a boost if rate cuts materialise. Other retail names flagged include Page Industries, Bata, and Metro Brands, alongside FMCG leaders such as Nestle, Dabur, and Titan.

The optimism around policy changes lifted consumption-driven stocks on Monday, with Trent among the notable gainers. The company’s market capitalisation now stands at ₹1.97 lakh crore.