Gati, Allcargo and VRL Logistics fall up to 3% ahead of GST Bill discussion
Gati stock shed 1.57 per cent, Transport Corp of India was down 2.22 per cent, VRL Logistics declined 1.4 per cent, while Allcargo Logistics fell 3.8 per cent on the BSE.
- Aug 3, 2016,
- Updated Aug 3, 2016 12:48 PM IST
Shares of logistics companies such as Gati, Allcargo Logistics and VRL Logistics on Wednesday fell up to 4 per cent as investors turned cautious ahead of the discussion on the Goods and Services Tax (GST) Bill in the Rajya Sabha.
Gati stock shed 1.57 per cent, Transport Corp of India was down 2.22 per cent, VRL Logistics declined 1.4 per cent, while Allcargo Logistics fell 3.8 per cent on the BSE.
Logistic stocks have seen 30-40 per cent jump in the past few weeks on anticipation of passage of GST Bill in the monsoon session of Parliament.
"If GST doesn't become the reality, then the stocks which have already run-up on the hope of passage of GST, can witness significant correction," said Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments.
ALSO READ: Key developments that are shaping the market today
GST is the most far-reaching tax reform in post-independence India, which aims to end the cumbersome regime of multiple taxes on goods and services and bring them under one rate.
Economists at HSBC forecast a boost of 0.8 percentage points to GDP growth from the GST within 3-5 years.
Shares of logistics companies such as Gati, Allcargo Logistics and VRL Logistics on Wednesday fell up to 4 per cent as investors turned cautious ahead of the discussion on the Goods and Services Tax (GST) Bill in the Rajya Sabha.
Gati stock shed 1.57 per cent, Transport Corp of India was down 2.22 per cent, VRL Logistics declined 1.4 per cent, while Allcargo Logistics fell 3.8 per cent on the BSE.
Logistic stocks have seen 30-40 per cent jump in the past few weeks on anticipation of passage of GST Bill in the monsoon session of Parliament.
"If GST doesn't become the reality, then the stocks which have already run-up on the hope of passage of GST, can witness significant correction," said Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments.
ALSO READ: Key developments that are shaping the market today
GST is the most far-reaching tax reform in post-independence India, which aims to end the cumbersome regime of multiple taxes on goods and services and bring them under one rate.
Economists at HSBC forecast a boost of 0.8 percentage points to GDP growth from the GST within 3-5 years.