GST Arrives, Market Set To Thrive

Jun 30, 2017 | 05:12 PM IST

Market this Week

The market is still feeling the heat of the moment. Investors are looking too cautious while picking their stocks. But the stable factor for the market is delivery based volume is increasing day after day. Investors are preferring delivery based trading instead on intraday. Foreign Institutional Investors (FII) are pulling out capital whereas Domestic Institutional Investors (DII) are pumping in the capital every day. GST rollout is just a day away (On 1st July 2017), however, people are still a bit confused about GST norms. It looks like it will take some time to understand and digest all the details of GST.

Movers & Shakers

Jaypee Infratech rallied nearly 52% in last week as huge buying pressure has been seen on the stock. Few times stock was locked in the upper circuit as well. At this point, the buying side is pressurising the seller side. Jaiprakash Associates Ltd jumped more than 38% during last week. On the other side, Nicco Corporation lost nearly 22% while Fortis Healthcare started correcting with the reports of Malaysia-based Integrated Healthcare Holdings(IHH) pulling out of controlling stake purchase talks from Fortis Healthcare. The stock dragged down nearly 17%.

Key Market Drivers

P-notes investment has surprisingly increased to a seven-month high of Rs.1.81 lakh crore at the end of May due to various measures that were taken by Indian government i.e. GST implementation and NPA resolution by RBI. In other news, Central Depository Services (India) on Friday made a stellar debut on NSE, as the scrip got listed at Rs 250, a premium of 67.79 per cent over its issue price of Rs 149 apiece. CDSL’s IPO received a spectacular 170-times over subscription last week, eclipsing solid responses to the issues of D-Mart, Hudco and S Chand.

Event Watch

GST rollout is the main event on 1st July 2017. It is a historic day for India but let's understand how it works. Goods & Services Tax is a comprehensive, multi-stage, destination-based tax that will be levied on all the Goods and Service. In the earlier tax scheme there used to be cascading taxation through which tax was levied on every stage i.e. manufacturing, wholesaling, retail and consumer. In GST, every stakeholder will get input credit will eventually help in lowering prices of goods and services.

Destination-Based Goods and Services Tax will be levied on all transactions happening during the entire manufacturing chain i.e. GST will be levied at every point of sale which has an input tax credit which will allow sellers to claim the tax that is already paid, so that the final liability on the end consumer is reduced. There are 2 important benefits of GST. One, it will decrease the cascading effect of taxes, and second, by letting input tax credit, it will bring down the burden of taxes and prices.

Stocks to Watch

Graphite India is on the upside while Virtual Global Education is on the downside.



Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to pave a smooth road for our clients in the shaky world of stock market. While...



Infosys, TCS Disappoint; Hopes Pinned On Midcaps

Market This Week The market is following one-way traffic at this point. Any small correction will be highly welcomed by the investors to jump in. All the giants are set to
Read More>>

Free Research Report -Tata Coffee Ltd.

Tata Coffee Limited is a holding company. The Company, through its subsidiaries, engages in the production, trading and distribution of coffee, tea and allied products. The Company's segments include Plantation and Value Added Products. Its
Read More>>

Global Optimism & Monsoon Keep The Market In Green

Share Market News – 19 July 2017 The market looked positive cutting yesterday's loss where Nifty just managed to hit 9900 levels and closed at 9899.6 gaining 72.45 points while Sensex jumped by 244.36 points to 31955.35. All
Read More>>

Position Trading: Much More Than Just Buy-Hold-Sell

Wait and watch. One of the most common phrases​ used in the English language. But if used in the right context, it can be a very powerful expression. In the context of trading, position trading can be best explained by using these three words –
Read More>>

Free Research Report Rico Auto Industries Limited

Incorporated in March 1983, Rico Auto Industries Ltd (RAIL) manufactures and sells high-pressure aluminum die cast components and spheroidal graphite (SG) iron castings for the automotive sector. RAIL currently operates from 9 locations at
Read More>>