The Goods and Services Tax (GST) is the most important piece of legislation that markets are awaiting approval.
The GST Bill is stuck in the Rajya Sabha and once again there are hopes that this legislation will sail through. As we write there are reports that the government is reaching out to the opposition parties to get this Bill cleared.
There are hopes that the rationalization of taxes would help the company and it could also benefit from logistic savings.
The belief is that many players from the unorganized sector could come under the purview of taxes, thus benefiting a company like Kajaria Ceramics.
Again like Kajaria, Relaxo could gain some competitive advantage, when compared to the unorganised sector as many players would come under the purview of taxes.
Reduced warehouse charges may see the share price of Godrej Consumer rallying. It could also benefit from rationalization of taxes.
Havells and Bajaj Auto could be other companies that may see a spike in their share prices, if GST is passed.
The last time the government was very close to passing the GST Bill in the winter session of parliament. It remains to be seen whether this time the country is lucky enough to see the Bill sail through.