GST reform hopes fire up stocks

Tribune News Service

New Delhi, November 26

Stock markets today ended their losing spree as the BSE Sensex surged 183 points to close at 25,958 points — an over two-week high — on hopes of a GST breakthrough in Parliament.

As the winter session commenced today, all eyes are on the passage of the GST Bill which seeks to create a uniform market for goods and services in the country.

The BSE 30-share gauge ended up 182.89 points, or 0.71 per cent, at 25,958.63 — a level last seen on November 9.

Sanjeev Zarbade, vice-president, Private Client Group Research, Kotak Securities, said any consensus on the GST front in the ongoing winter session would be a positive.

Shreyash Devalkar, fund manager – equities, BNP Paribas Mutual Fund Market, said market participants would now keenly watch out for the fate of key reform Bills in the winter session. In that regard, optimism seemed to seep into the markets after Finance Minister Arun Jaitley said he had spoken to Congress leaders on the GST Bill to break a deadlock in Parliament and was optimistic that the key reform measure would be passed in the winter session.

Gaurav Jain, director, Hem Securities, said the market extended rally in afternoon trade on positive global cues and hopes of likely passing of the GST Bill. A rally in commodity prices worldwide also supported the jump of the indices.

Industry body Assocham has asked the Opposition parties to help in the passage of GST Bill as it can be a “brahmastra” for India in challenging global times.

“Goods and Services Tax is a key ‘brahmastra’ for our GDP. Lawmakers across parties should pass the Constitutional Amendment Bill on GST without further delay,” the new Assocham president Sunil Kanoria said.

He said the economy was affected by demand slowdown, uncertain geopolitical situation after the Paris terror attacks, and an unprecedented crash in vital commodities.

“GST will harmonise indirect taxes by doing away with multiplicity of taxes. It will also reduce cost of production, which will be then passed on consumers, thus lowering inflation. More striking would be the display of a political unity and the will to rise up to national cause,” he said.

The timely implementation of GST would raise the GDP by 1.5 to 2 per cent, Kanoria said adding the Opposition should not change their earlier stance.