Logistics stocks drew mixed reactions today as an uncertainty still prevails in markets with regard to actual roadmap to GST implementation after the Rajya Sabha passed the historic bill yesterday.
Shares of Allcargo Logistics surged 6.72 per cent, Transport Corporation of India rose by 3.74 per cent and Blue Dart Express went up by 2 per cent on the BSE.
On the other hand, the scrip of Arshiya Ltd fell by 3.88 per cent, Snowman Logistics was down 3.84 per cent, Sical Logistics (3.55 per cent) and Container Corporation of India (3 per cent).
The long-pending indirect tax reform Goods and Services Tax (GST) Constitutional Amendment Bill was passed by the Rajya Sabha yesterday.
"As for the markets, the passing of this bill is definitely a sentiment boost. However after an initial euphoria, I believe the markets will cool off given that the actual implementation is still some time away.
"Also, I believe that much of the GST impact is already priced in, as is reflected in the significant run up seen in the midcap and small cap stocks that were supposed to benefit from GST, especially those which were facing competition from the unorganized players," said Dhananjay Sinha, Head- Institutional Research, Economist & Strategist, Emkay Global Financial Services Limited.
