GST Passage Fuels Sensex Rally; GST Beneficiaries Jump

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The passage of the GST Amendment Bill fuelled a rally on the domestic bourses, with stocks that are major beneficiaries of its passage jumping in trade.

The Sensex gained 105 points, while the Nifty rallied 28 points in trade. Stocks that are largely associated with GST jumped.

GST Passage Fuels Sensex Rally; GST Beneficiaries Jump
PVR, which is likely to see lower taxes if the GST is implemented gained, while smaller companies like Century Ply, jumped 3 per cent. PVR and Inox, which run multiplexes in the country would be the biggest beneficiaries as the GST rates are lower than the present entertainment tax.

It is believed that the unorganised sector in the plywood business would now come under the ambit of taxes after GST, thus benefiting Century.

VRL Logistics another beneficiary, if GST is implemented gained 3 per cent in trade. Most of the other logistics players were trading higher. Maruti, was also up, on hopes that the GST would reduce the tax burden on small cars.

Banking stocks were trading positive in line with the positive sentiments across the markets, with both private and public sector banking stocks gaining ground. Among the early gainers were State Bank of India and Punjab National Bank.

ICICI Bank, which has been following ever since the bank declared a poor set of numbers, was trading higher.

Meanwhile, most of the Asian markets were trading with gains, as cues from across the globe continued to remain strong, after crude oil prices jumped.

Read more about: sensex, nifty
Story first published: Thursday, August 4, 2016, 9:20 [IST]
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