With the beginning of the Winter Session of Parliament on Thursday, shares of logistics companies hogged the limelight as Prime Minister Narendra Modi on Wednesday called for a collective effort to make the two Houses function smoothly and ensure passage of important legislations, including the goods and services tax bill (GST).
GST has been passed in the lower house of the Parliament, but has been blocked in the upper house where Modi’s nationalist coalition lacks a majority. Congress party on Wednesday said that it was open for discussions on GST bill over which it has “very genuine concerns”.
Alex Mathews, head, research, Geojit BNP Paribas Financial said, “Markets are likely to remain high volatile during the upcoming Parliament session. Stocks of non-alcoholic beverages manufacturers, auto, FMCG and logistics will remain in focus during the period.
In the morning trade, most of the shares of major logistics firms were trading in green. Gati Ltd was trading 4.63 per cent up at Rs 161.45 (at 11.18 am). Allcargo Logistics and Agarwal Industrial Corporation were up 1.59 per cent and 0.98 per cent at Rs 386.80 and Rs 155.30, respectively.
Shares of other logistics companies such as Container Corporation of India and VRL Logistics were trading 0.78 per cent and 2.19 per cent up at Rs 1,427.45 and Rs 444, respectively.
According to Sharekhan, the government has initiated several executive-led reforms and is trying to push the Goods and Services Tax (GST) bill in the upcoming session of the Parliament, reflecting its intention to shift focus to policy activism.
Rahul Gandhi on Wednesday said the Congress strongly supports the legislation, but it should reach out to the Opposition and address three key issues raised by the party.
Ambareesh Baliga, independent market analyst believes any positive development in the Parliament will be welcomed with a rally. He said, “I expect the market to gain strength in December as development work takes off at the ground level along with consumption boost in the New Year with the 7th Pay Commission and OROP.”
(With inputs from agencies)