Shares of MRF LtdIndia’s highest-priced listed stock, surged more than 6% on Tuesday to hit a fresh all-time high of ₹1,53,825. The rally came amid growing expectations of a possible GST rate cut for the tyre industry in the upcoming GST Council meeting.

According to reports, the Automotive Tyre Manufacturers Association (ATMA)which represents six large tyre companies accounting for over 90% of India’s tyre production, has urged the government to slash GST on tyres. At present, most automotive tyres attract the peak GST slab of 28%, a rate ATMA says unfairly categorises tyres as luxury goods despite their critical role in transportation and agriculture.

ATMA argued that tyres account for a significant portion of operating costs across key sectors like transportation, agriculture, mining, and construction. A GST cut to 5%, as proposed, could provide meaningful relief to small traders, farmers, and enterprises dependent on affordable logistics.

The optimism over possible GST rationalisation sent MRF’s stock soaring, adding over ₹9,000 per share in a single session. The company now commands a market capitalisation of over ₹658 billioncementing its position as one of the most closely watched stocks in India.