Shares of logistics companies rose as much as 7.5 per cent after the Cabinet approved the Constitution Amendment Bill on GST, clearing the way for its introduction in ongoing session of Parliament.
Snowman Logistics surged 7.48 per cent, while Gati climbed 5.44 per cent on the BSE.
Container Corporation of India rose by 4.64 per cent and Gateway Distriparks was up 2.03 per cent.
Experts said that these stocks rose on hopes of lower taxes.
"Post Cabinet clearance of the constitutional amendment, GST looks to be moving closer to reality. It will also be a huge sentiment booster as it will reaffirm investors' faith that this government has the intents and ability to push through major structural reforms," said Dinesh Thakkar, Chairman & Managing Director, Angel Broking.
The Cabinet had yesterday approved the Constitution Amendment Bill on GST, clearing the way for its introduction in ongoing session of Parliament to bring about long-pending indirect tax reforms.
Local good news about Cabinet approving constitutional amendment for GST added cheer and helped markets gain, said Jayant Manglik, President, Retail Distribution, Religare Securities.
The Bill was approved by the Cabinet late last evening and it is likely to be tabled in the ongoing winter session of Parliament that concludes on December 23, sources said.
The government aims to roll out the Goods and Services Tax (GST) from April 1, 2016.
The GST will subsume most of the indirect taxes like excise duty and service tax at the central level and VAT and local levies on the states front.
In the broader market, the BSE benchmark Sensex ended at 27,126.57, up 416.44 points.
