GST cut: Jefferies upgrades Hero Motocorp but bearish on Hyundai and Tata Motors

Jefferies anticipates that a Goods and Services Tax reduction may significantly increase the demand for automobiles. Two-wheelers and small passenger vehicles are likely to benefit the most. The brokerage has upgraded Hero Motocorp’s rating. However, it maintains an ‘Underperform’ rating for Hyundai and Tata Motors. The firm also expects volume growth in the auto sector.