Indian stock markets finished their day with marginal gains on Wednesday. The BSE Sensex stood higher by 36 points, while the NSE Nifty stood higher by 24 points at the closing bell yesterday.
On the sectoral front, realty stocks, metal stocks, and energy stocks witnessed maximum buying interest. However, these gains were wiped off by losses seen in IT stocks and FMCG stocks.
GST and Its Impact on Broader Markets…
The above volatility in broader markets as well as specific sectors was seen on the back of rollout of Goods and Services Tax (GST).
In the latest news on GST, Fitch ratings stated that GST is likely to remove domestic trade barriers and boost revenue indirectly in the long term. This, as per the ratings agency, is because the tax regime will support the GDP growth and encourage tax compliance.
One shall note that with the changes in GST, the unorganised sector is forced to report and pay taxes on everything they sell. And this development is set to give a big boost to the organized sector.
As we wrote in a recent edition of The 5 Minute WrapUp:
This is perhaps why – when most of us are nervous about the roll out of this big-bang reform – stock markets are surging.
We believe that the above shift towards formalization bodes well for the government, consumers, and the economy at large.
In the News from the Global Financial Markets…
Stock market participants will be taking cues from the Fed minutes of the June 13-14 policy meeting.
The Fed, in its meeting held last month, raised its benchmark interest rate by 25 basis points to 1.25%. This was the third such increase in six months – and a message of confidence from the Fed in the strengthening of the US economy.
