Below is the Views on GST is likely to be taken positively on D-street by Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments
After the extended long weekend, market opened under the influence of its global peers with positive bias. However, lately it weighed down by sharp losses in rate sensitive and bank stocks. Moving ahead in the week, traders looked cutting their positions ahead of June month F&O expiry, which again put pressure on the benchmark indices. Finally, expiry day arrived to remain highly volatile. Further, investor remained cautious ahead of India’s biggest reform i.e. GST which is going to implement from July 1st. During the week, indices remained highly volatile throughout the week and ultimately closed the day on the slightly positive note. Going ahead in the week, we expect high volatility in the benchmark indices on the back of GST implementation. As per sources, we are learning several political parties are preparing protest against GST, however, we don’t think it is going to impact its rollout.
‘One nation one tax’ is likely to be taken positively on Dalal Street on account of more clear taxation. Though, we can’t rule out initial knee-jerk reaction. Further, auto stocks will also remain in the radar on the back of their monthly auto sales number. Service PMI data is also schedule to declare in the week, which will show the sign of macro economic activity happening. Apart from that, globally, US payroll data is also due in the same, which will also showcase the condition in the US market. Overall, coming week is very eventful and crucial. Hence, we advise investors to trade cautiously and have a look on GST positive sectors specifically, Maruti, ITC, Specialty restaurant, India Cement and PVR.
Above views are of the author and not of the website kindly read disclaimer