Logistics shares dip as government drops GST session

Patel Integrated, Gati, VRL Logistics, Snowman Logistics, Transport Corporation and Sical Logistics are down 3%-6% on the BSE.

Shares of logistics companies are trading lower on the bourses as the government on Wednesday abandoned plans to hold an extended monsoon session of Parliament to pass the Goods and Service Tax (GST) Bill.

Patel Integrated Logistics (down 6% at Rs 77), Gati (5% at Rs 126), VRL Logistics (4% at Rs 400), Snowman Logistics (4% at Rs 92), Transport Corporation of India (3.3% at Rs 228), Sical Logistics (3% at Rs 152) and Navkar Corporation (2% at Rs 163) are down more than 2% each. At 09:33 AM, the S&P BSE Sensex was down 1.5% at 25,337.

According to Dr Vijay Sankeshwar, chairman and managing director of VRL Logistics, if Transport Bill and GST Bill gets nod in the Parliament, then there is no doubt that it will be an added advantage for the growth of logistics businesses across the country.

The GST Bill, passed by the Lok Sabha in the Budget session, was stuck in a political logjam in the Rajya Sabha, where the ruling National Democratic Alliance does not have a majority.

Initially, the government had planned to hold an extended monsoon session, sometime around August 25 and, in a swift three-day operation, get the Rajya Sabha to clear the GST Constitution amendment Bill, the Business Standard report suggests. CLICK HERE TO READ FULL REPORT.