Indian Auto Stocks Add $33 Billion in Value on Modi’s Tax Cuts

India’s automakers have emerged as the biggest winners of the government’s move to cut consumption taxes, as a potential boost to demand lifts their profit outlook.

BSE Ltd.’s measure of 20 auto firms has added about $33 billion in market value since Aug. 15 when Prime Minister Narendra Modi first announced the government’s plan to lower goods and services levies in the steepest tax reduction in a decade.

The auto gauge has surged more than 12% since then, beating every other sectoral index. Key BSE Sensex Index remained nearly flat during the period, as a 50% tariff on India’s ...