 "Logistics stocks trade weak ahead of vote on GST")
Shares of companies in the logistics sector were trading mixed ahead of the Goods and Services Tax (GST) Bill that is likely to be tabled in Rajya Sabha on Wednesday. Most these stocks have partially erased early losses on the Bombay Stock Exchange (BSE).
Snowman Logistics, GATI, Allcargo Logistics, VRL Logistics, Patel Integrated and Transport Corporation of India are some stocks in this segment that are down, by 1%-3%. In comparison, the benchmark S&P BSE Sensex was down 0.50% at 27,843.
According to Business Standard reports, most analysts suggest that from a macro-economic perspective, while the short-term impact of GST could be mixed, the long-term impact will be positive.
“GST will be clearly positive, as gains from a more efficient tax system, greater price competitiveness (reduced costs) and the removal of interstate tax barriers should boost growth via higher exports and investments, structurally lower inflation, and raise government (central + state) tax revenues,” say Ravi Adukia and Saion Mukherjee of Nomura in a recent report. LINK.
Meanwhile, most of these stocks had outperformed the market by rallied up to 49% in past two months, as compared to 4% rise in the Sensex till Tuesday.
Snowman Logistics, GATI, Allcargo Logistics, VRL Logistics, Patel Integrated and Transport Corporation of India are some stocks in this segment that are down, by 1%-3%. In comparison, the benchmark S&P BSE Sensex was down 0.50% at 27,843.
According to Business Standard reports, most analysts suggest that from a macro-economic perspective, while the short-term impact of GST could be mixed, the long-term impact will be positive.
“GST will be clearly positive, as gains from a more efficient tax system, greater price competitiveness (reduced costs) and the removal of interstate tax barriers should boost growth via higher exports and investments, structurally lower inflation, and raise government (central + state) tax revenues,” say Ravi Adukia and Saion Mukherjee of Nomura in a recent report. LINK.
Meanwhile, most of these stocks had outperformed the market by rallied up to 49% in past two months, as compared to 4% rise in the Sensex till Tuesday.
Snowman Logistics, GATI, Transport Corporation of India, VRL Logistics and Allcargo Logistics had surged more than 25% each on the BSE.
| Company | 02/06/2016 | 02/08/2016 | % chg | LTP | % chg |
| Snowman Logistics | 60.95 | 90.85 | 49.06 | 89.45 | -1.54 |
| Arshiya | 22.75 | 31.45 | 38.24 | 31.80 | 1.11 |
| Gati | 133.85 | 184.30 | 37.69 | 181.80 | -1.36 |
| Transport Corp. | 284.05 | 372.90 | 31.28 | 365.15 | -2.08 |
| North Eastn.Car. | 34.00 | 43.80 | 28.82 | 44.55 | 1.71 |
| VRL Logistics | 267.45 | 338.60 | 26.60 | 337.50 | -0.32 |
| Allcargo Logist. | 163.45 | 205.10 | 25.48 | 202.20 | -1.41 |
| Patel Integrated | 100.15 | 123.45 | 23.27 | 120.35 | -2.51 |
| Chartered Logistics | 20.10 | 24.50 | 21.89 | 23.75 | -3.06 |
| Container Corpn. | 1389.50 | 1517.95 | 9.24 | 1513.25 | -0.31 |
| Sical Logistics | 145.70 | 152.30 | 4.53 | 153.20 | 0.59 |
| Blue Dart Exp. | 5825.65 | 5752.95 | -1.25 | 5768.25 | 0.27 |
| Gateway Distr. | 311.20 | 273.55 | -12.10 | 273.55 | 0.00 |
| Sensex | 26843.14 | 27981.71 | 4.24 | 27843.02 | -0.50 |
| LTP : Last traded price on BSE in Rs | |||||