GST Bill passage: Auto stocks soar, mixed trading in logistics stocks 

Mumbai: The passage of GST Bill in Rajya Sabha late Wednesday had a major impact on the domestic stock markets. Anticipation of smooth approval in Rajya Sabha led an early surge in the markets on Wednesday and it was priced in on Thursday. However, auto stocks rallied sharply in the early session after as GST bill is expected to lower tax administrative cost for the sector. On the other hand, logistics sector witnessed a mixed pattern in trading.

Shares of Allcargo Logistics surged 6.72 per cent, Transport Corporation of India rose by 3.74 per cent and Blue Dart Express went up by 2 per cent on the BSE. On the other hand, the scrip of Arshiya Ltd fell by 3.88 per cent, Snowman Logistics was down 3.84 per cent, Sical Logistics (3.55 per cent) and Container Corporation of India (3 per cent).

Dhananjay Sinha, Head- Institutional Research, Economist & Strategist, Emkay Global Financial Services Limited, said: “It’s reflected in the significant run up seen in the midcap and small cap stocks that were supposed to benefit from GST, especially those which were facing competition from from the unorganized players.”

Automobile industry experts forecast that the implementation of GST would reduce the on-road prices for price sensitive, entry-level segment, and improve the affordability of the vehicles for the end-consumers. Shares of Hero MotoCorp rose by 2.09 per cent, while Tata Motors jumped 3.99 per cent and Maruti Suzuki saw its shares soar nearly 2 per cent in on BSE.

Among others, Mahindra & Mahindra jumped 1.63 per cent and Bajaj Auto shares rose by 2.09 per cent in morning trade on the BSE. The BSE Auto Index was trading at 21,082.72, higher by 354.57 points, or 1.71 per cent, in morning trade. According to automakers, the uptick in auto stocks is largely on anticipation that the implementation of GST would benefit auto manufacturers.

Meanwhile, the broader market was trading flat with the 30-share benchmark index Sensex quoted at 27,768.12, a rise of 70.61 points or 0.25 per cent at 1108 hours.

Source: PTI