The government on Tuesday put all speculation to rest and clarified that the goods and services tax (GST) will keep its July 1 date for countrywide rollout. Market experts said, when implemented, GST would be dream come true for the stock market.
There are expectations that the immediate benefit of GST would be felt across sectors, but the biggest beneficiaries would be industries where the unorganised sector has a large market share.
“It is important to understand that the main beneficiary will be the India, Indian indices and India’s image. The government and the common man would benefit equally,” said VK Sharma, Head of PCG Research at HDFC Securities.
Stocks have already rallied quite a bit in the runup to GST rollout, lifting BSE Sensex and the Nifty50 to all-time high levels of 31,430 and 9,700 on June 6.
Investors and brokerages are bullish about the long-term positive impact GST is going to have on different businesses.