New Delhi, Sept. 4 -- Escorts Kubota, a leading manufacturer of agricultural tractors and engines, saw its shares surge 14% intraday on Thursday, September 4, to Rs.4,180 after the GST Council reduced the tax on tractors.

The council also cut the GST on tractor tyres, lifting market sentiment as the company derives most of its revenue from agri-machinery products. The move is expected to support margins and boost demand.

Other beneficiaries included VST Tillers Tractors and Mahindra & Mahindra, whose shares also jumped up to 10% following the announcement. These GST cuts on tractors come at a perfect time, supported by favorable rural conditions such as timely and widespread monsoon rains, healthy water reservoir levels, and an early st...