Logistics stocks surge up to 11% on hopes of GST roll-out in 2016

Dated 7th October, 2015

Shares of logistics firms today surged on hopes of GST roll-out in 2016.

Gati shares ended 12.23 per cent up at Rs 158.25, Patel Integrated Logistics closed 10.42 per cent up after jumping over 11 per cent and Sical Logistics gained 6.59 per cent to close at Rs 166.50.

Transport Corporation of India, Allcargo Logistics and Snowman Logistics settled 1.21 per cent, 1.81 per cent, 1.29 per cent up, respectively.

Prime Minister Narendra Modi had on Tuesday said that India hopes to roll out a new goods and services tax (GST) in 2016.

Lower tax rate and fast movement of goods and inventories will help logistics providers, said analysts.

Gati is one of the top five e-commerce logistics service providers in India, and GST will drive its next leg of growth, said an analyst.