Share price of logistics companies fell sharply on Wednesday after the Opposition Congress party disrupted a Parliament session on Tuesday
Share price of logistics companies fell sharply on Wednesday after the Opposition Congress party disrupted a Parliament session on Tuesday accusing the government of pursuing a “vendetta” against the Gandhi family.
It faded hopes that goods and services tax (GST) would be cleared in the ongoing winter session of Parliament.
Logistics major Container Corporation of India fell 5.59 per cent to Rs 1,340 on Wednesday. Others such as Allcargo Logistics, VRL Logistics, Aegis Logistics and Gateway Distriparks slid 5.10 per cent, 1.85 per cent, 6.45 per cent and 1.15 per cent, respectively. Gati slid the most and closed 8.46 per cent down at Rs 151.40.
Chandan Taparia, analyst, Anand Rathi Securities said, “If GST will not clear in the ongoing Winter session then it will delay till 2017.” However, the government has plans to introduce GST from April 2016.
According to Finance Minister Arun Jaitley, the implementation of the GST could augment India’s GDP by 2 per cent. According to market experts, the sectors to benefit the most would be logistics, E-commerce, automobile, and FMCG among others.
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