Logistics stocks slump on GST concerns; Gati cracks 8%

Patel Integrated Logistics, Transport Corporation of India, Allcargo, Snowman Logistics and VRL Logistics dip up to 15%

Shares of logistics companies are trading lower on the bourses as the hopes for the clearance of the crucial GST (goods and services tax) bill seems fading amid other unrelated controversies including National Herald controversy which has paralyzed the winter session of the Parliament.

Among the individual stocks, Patel Integrated Logistics is down 15% at Rs 114 followed by GATI down 8% at Rs 152, Transport Corporation of India losing 8% at Rs 293, Allcargo down 4.5% at Rs 353, Snowman Logistics declining 4% at Rs 84 and VRL Logistics down 2%, at Rs 409 on the Bombay Stock Exchange (BSE). 

Earlier, these stocks shot up after Prime Minister Narendra Modi reiterated that the government is hopeful of rolling out the GST (goods and services tax) Bill in 2016. Meanwhile, Narendra Modi also held prolonged discussion and made several efforts for the passage of the over the GST bill following his meeting with Congress president Sonia Gandhi and former Prime Minister Manmohan Singh.