Logistics stocks rally

Six logistics stocks rallied 1.7% to 10.57% at 14:03 IST on BSE on hopes that the outcome of the state elections will boost chances for the Bharatiya Janata Party led National Democratic Alliance to pass goods and services tax bill in the Rajya Sabha

Allcargo Logistics (up 10.57% at Rs 160.60), Gati (up 9.68% at Rs 129.20), Patel Integrated Logistics (up 8.64% at Rs 102.50), Snowman Logistics (up 3.74% at Rs 59.60), Sical Logistics (up 3.05% at Rs 138.60) and Aegis Logistics (up 1.7% at Rs 113.55) gained.

Meanwhile, the S&P BSE Sensex was down 149.59 points or 0.58% at 25,555.02.

The trends for assembly elections announced so far showed that the Bharatiya Janata Party (BJP)-Asom Gana Parishad-Bodoland People's Front alliance was set to form government Assam, dislodging Congress which has been in power for three consecutive terms. The trends also showed that the Communist Party of India-Marxist (CPM)-led Left Democratic Front (LDF) was set to oust Congress led United Democratic Front government in Kerala.

A win for the BJP led coalition in Assam will put BJP in the right shape for the 2017 assembly election in Uttar Pradesh (UP). The UP assembly has 403 seats. The number of seats in Rajya Sabha, or the upper house of parliament, depends on representation in states. A lack of a majority for the BJP led National Democratic Alliance (NDA) in the Rajya Sabha has delayed passage of a key tax reform bill viz. the Goods and Services Tax (GST) bill in the upper house. The NDA rules the central government after an emphatic victory in the 2014 Lok Sabha election.

Finance Minister Arun Jaitley said in an interview to All India Radio recently that the GST Bill will be put to vote in the monsoon session of Parliament if Congress continues to oppose the Legislation. The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of stiff resistance by the Congress. For the GST bill to become a law, the GST bill also needs to be approved by half the state assemblies.

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