In today’s trading session, shares of logistics companies were trading higher for the second straight day on both NSE and BSE after the Goods and Services Tax (GST) Council on Monday broke a deadlock over the issues of administrative control over assesses and broadly agreed that the GST will roll out from 1st July 2017, instead of the earlier deadline of 1st April 2017.
Gati share price, Patel Integrated share price, Snowman Logistics share price, TCI share price, Allcargo share price, Sical Logistics share price, Gateway Distriparks share price and VRL Logistics share price were up 1 per cent to 5 per cent as compared to 0.16 per cent drop in the Nifty share price at 11.12 AM. Most of these stocks were ended higher between 1 per cent and 8 per cent on Monday, 16th January 2017. All the above mentioned shares belong to the top 500 shares list identified by the research and analysis team of Dynamic Levels due to their high trading volume.
The next meeting of the GST Council has been convened on 18th February 2016. By that time, changes to various Bills will be worked out and all of these will ready to be passed by Parliament as well as state Assemblies. Rules and segment-wise GST rates will take till March to finalize, pushing the introduction of the GST to 1st July 2017.
Introduction of the Goods and Services Tax remains a much awaited reform, which will not only simplify tax complications but would benefit consumers, produces, and the Government too.
Implementation of the GST will overhaul as well as compress the entire transportation setup. It will also lead to consolidation of widely spread warehouses, on the contrary free movement of goods and services would necessitate tightened logistics networks.
Stock Commentary (As of 11.30 AM)
• Snowman Logistics share price was leading the chart among all the logistics shares. It was trading at Rs 61.65, up by 3.79 per cent.
• Next in the line is TCI share price which was quoting at Rs 161.85, up by 2.02 per cent.
• Patel Integrated share price was trading at Rs 83.75 apoiece on NSE, up by 1.33 per cent.
• Gati share price was seen trading at Rs 122.85, up by 1.45 per cent or 1.75 points.
• Allcargo share price was trading at Rs 184.35, up by 1.15 per cent.
• On the other hand, Sical Logistics share price was quoting at Rs 232.75, down by 0.64 per cent. However the share has touched a new 52 week high of Rs 241.00 earlier in the day.
Therefore as we can see all the major logistics shares are celebrating the delay in the roll out of GST.
blog comments powered by Disqus