Logistics shares surge on GST hopes

Logistics companies rallied on Friday, even as the broader market traded volatile with Sensex trading at 26891 levels, on the hopes that the GST bill will be passed soon in the upper house.

Gati was up by almost 3 per cent or Rs. 4.55, trading at Rs. 156.55 per share on an intra-day basis after reaching a high of 159.30. Snowman Logistics (4.03 per cent), Sical Logistics (5.19 per cent), VRL Logistics (1.81 per cent), All Cargo Logistics (1.98 per cent), Patel Integrated Logistics (1.87 per cent)  are trading firm on BSE on an intra- day basis.

The gains extended on Friday highlight the logistics companies good performance over last 3 trading sessions on hopes of clearance of the goods and services tax (GST) Bill in the upper house of the parliament. 

Amit Mitra, Finance Minister of West Bengal who will be heading the GST committee of State Finance Ministers when the state finance ministers meet to discuss the GST bill clearance, is expected to forge consensus among states to help pass the bill. The meeting is scheduled on June 14 and 15.

Logistics sector will be the biggest beneficiary once the GST bill is passed and the indirect benefits will be derived by the larger toll operators.