1. Stock markets eye Parliament Winter Session for GST rollout

Stock markets eye Parliament Winter Session for GST rollout

The tumbling benchmark indices Sensex and Nifty are now eyeing the Winter session of Parliament for further direction, which will see discussions on important bills like Goods and Services Tax (GST) and Land Acquisition.

By: | Updated: November 25, 2015 3:43 PM
(Express photo by Anil Sharma)

The Winter Session that will begin from Nov 26th, will be closely monitored, especially in light of the government’s recent reformist announcement. (Express photo by Anil Sharma)

The Winter Session of the Parliament that will start from November 26 (Thursday) is expected to be a stormy one. Market analysts believe the upcoming Parliament session will keep Sensex and Nifty highly volatile. The session will end of December 23.

G Chokkalingam, founder, Equinomics Research said, “There will be a lot of noise. GST bill will be delayed. Market will remain range bound not because of the Parliament issue. It needs triggers from global factors in terms of receding fear on global deflation and on domestic front in terms of positive earning outlook for index stocks. Fed rate hike would give some comfort on former. By end of December industrial and corporate earnings would start improving.”

Key benchmark indices have plunged over 5 per cent since the beginning of the ongoing calendar year due to China currency devaluation, corporate earnings, Bihar election results and other global events. The tumbling benchmark indices Sensex and Nifty are now eyeing the Winter session for further direction, which will see discussions on important bills like Goods and Services Tax (GST) and Land Acquisition.

For the upcoming Parliament session, Alex Mathews, head, research, Geojit BNP Paribas Financial said, “Markets are likely to remain high volatile during the upcoming Parliament session. However, we can see some downfall during the first-three days of session. Stock of non-alcoholic beverages manufacturers, auto, FMCG and logistics will remain in focus during the period.

Moody’s Investors Service on Wednesday cautioned that a failure by the government in implementing key reforms such as Goods and Services Tax (GST) and land acquisition laws could hamper investment and signal a derailed reform prospect. It further said that weak global cues and an impending US rate hike may also have an impact on Indian businesses.

Prime Minister Narendra Modi on Wednesday appealed to the Opposition for cooperation during the winter session and made a strong pitch for early passage of the GST, saying it will be in the interest of the nation.

According to Dun & Bradstreet, the progress of Winter session of the Parliament are expected to impact business optimism and investors confidence amid concerns over muted investment and subdued rural demand which posed another threat to the recovery process.

Ambareesh Baliga, independent market expert said, “We could see a continuous logjam, unless the BJP takes an accommodative stance. The important bills going thorough is a pipe dream but the silver lining for the markets is the expectation levels are low. So any positive developments will be welcomed with a rally.”

With agency inputs

  1. No Comments.

Go to Top