INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The GST Council cutting rates on 88 items, coinciding with the Modi government comfortably fight through a no-confidence motion,
is likely take the stock market to higher levels in the short term.
The move to cut rates by the GST Council in its 28th meet will cheer the
get a huge leg up on the Dalal Street, say market watchers
consumption, said Viral Berawala, CIO at Essel Mutual Fund.
Berawala said that the GST rates on paints, electrical, sanitary pads and
leather items have all been reduced
rates for 15 times to 18 per cent from 28 per cent
The list included vacuum cleaners, washing maching, small TVs, fridge, laundry machines, paints and varnishes
After the revised rates, only 35 items will be left in the 28-percent bracket from 226 goods as on July 1, 2017
household sentiment ahead of state elections, said Dhananjay Sinha, Head of Research, Economist Strategist at Emkay Global Financial
Services.
Nirmal Bang Institutional Research said that some of stocks under its coverage such as Whirlpool of India, IFB Industries, Bajaj
Electricals, V-Guard Industries, Havells India and Crompton Consumer will get a leg up
Footwear companies like Bata India and the hospitality stocks such as Lemon Tree Hotels will also be positively impacted, it said
Besides, the recent rise in petrol, diesel and LPG prices were a crucial variable impacting the middles class voters
The government seems to be addressing these concerns and the recent farm loan waivers announced by states and a substantial hike in MSP
prices for the kharif season are cases in point.
The GST bonanza has added to the ongoing populism ahead of crucial elections, Sinha
27.
Confident Modi elections 2019Last week was crucial as it was to give important cue over the credibility of a brewing united opposition
But the Modi government received 325 out of 451 votes that were cast
The Opposition could not gain much as TRS and BJD walked out
The brokerage noted that ever since Budget 2018, the market fell on 2019 election uncertainty.
Where is market headedIt looked as if the
market partly factored in the outcome as the BSE Sensex rose 145 points, 0.4 per cent, to 36,496 ahead of the crucial vote on Friday
The Nifty also topped 11,000-mark
We continue to believe that sentiment will change now and the uncertainty will recede in coming days
demand impact of reflationary fiscal, emerging macro imbalances due to overload of populism, and potential outcomes of state
tightening domestic liquidity, which have collectively caused meltdown in the broader market.
