 "Logistics shares in focus; Transport Corporation hits 52-week high")
Shares of logistic companies are trading higher for a second straight day on the bourses on reports that the government on Thursday exuded confidence of having the Goods and Services Tax (GST) Bill passed, with several Opposition parties coming out in open support.
Transport Corporation of India, Gati, Allcargo Logistics, VRL Logistics, Gateway Distriparks, Snowman Logistics, Sical Logistics, TCI Industries and Patel Integrated Logistics were trading higher by 2%-8% on the BSE. Most of these stocks were closed higher between 1% and 5% on Thursday.
To support the GST bill, the Congress party has brought down the number of conditions from eight to the following three: (a) The maximum GST rate be capped (at 18%), (b) the 1% inter-state manufacturing tax be scrapped, and (c) a credible dispute resolution mechanism be established.
While the NDA is said to be agreeable to the last two conditions, the first one could be a point of contention as the Congress believes a rate-cap would restrict the power of the executive government in raising tax rates.
"Faint but renewed hopes have emerged from the Winter Session of the Parliament that crucial bills will be debated and GST will get the Rajya Sabha nod. Both sides have softened their stands. With the street factoring in a very low probability of GST passing through this session, we think any breakthrough on this front could be a significant trigger for the market," Religare Institutional Research said in a client note.
Among the individual stocks, Patel Integrated Logistics has rallied nearly 8% to Rs 143, extending its previous day’s 8% surge on the BSE. Gati soared 5% to Rs 172, after gaining 6% surge on yesterday. Transport Corporation of India was up 3.5% at Rs 330, also its 52-week high on the BSE.
Transport Corporation of India, Gati, Allcargo Logistics, VRL Logistics, Gateway Distriparks, Snowman Logistics, Sical Logistics, TCI Industries and Patel Integrated Logistics were trading higher by 2%-8% on the BSE. Most of these stocks were closed higher between 1% and 5% on Thursday.
To support the GST bill, the Congress party has brought down the number of conditions from eight to the following three: (a) The maximum GST rate be capped (at 18%), (b) the 1% inter-state manufacturing tax be scrapped, and (c) a credible dispute resolution mechanism be established.
While the NDA is said to be agreeable to the last two conditions, the first one could be a point of contention as the Congress believes a rate-cap would restrict the power of the executive government in raising tax rates.
"Faint but renewed hopes have emerged from the Winter Session of the Parliament that crucial bills will be debated and GST will get the Rajya Sabha nod. Both sides have softened their stands. With the street factoring in a very low probability of GST passing through this session, we think any breakthrough on this front could be a significant trigger for the market," Religare Institutional Research said in a client note.
Among the individual stocks, Patel Integrated Logistics has rallied nearly 8% to Rs 143, extending its previous day’s 8% surge on the BSE. Gati soared 5% to Rs 172, after gaining 6% surge on yesterday. Transport Corporation of India was up 3.5% at Rs 330, also its 52-week high on the BSE.