Not all are winners in the GST 2.O regime of India. These shares are already losing

While the GST reforms of India are praised as a catalyst to stimulate growth and reward investors of shares, not all shares have emerged as winners. The GST on coal was raised to 18% compared to the earlier 5%, with the influence of assets. On Thursday, Coal India remained flat, while NLC India, Tata Power and JSW Energy each fell more than 1%.

Furthermore, aeration and energy drinks were hit with a 40% GST – the highest bracket in the current indirect tax regime. Varun Beverages, an important player in this segment, fell 1.5% on the trade today.

In the car room, tax reductions on cars, tractors and two-wheelers can stimulate the demand for companies with a strong presence of entry and mid-range segments. However, premium and luxuriously oriented car companies can become a headwind. Hyundai India, known for its premium offer, fell around 1% in the afternoon trade.

The shares of Delta Corp and Nazara Technologies came under heavy sales pressure on Thursday and slid more than 7%, because both companies fell on the wrong side of the GST revision. The government proposed a 40% tax in casinos, bets and online money games.

Surprisingly, Stegs of ITC and Godfrey Phillips despite the 40% tax on cigarettes and tobacco. ITC derives a large part of its income from cigarettes. Analysts say that the relocation is eliminating tax health and the company can benefit the long term, although higher taxes can influence the turnover in the short term.

Gst changes

India has announced two important tax rates of 5% and 18%, with effect from 22 September. Experts say that this will probably compensate for the tariff effects to a certain extent and stimulate consumption. farmers. They will also be sold on individual life and health insurance products by LIC, SBI Life Insurance and Icici Prudential Life Insurance.

The government estimates that the cutbacks will cause a turnover loss of RS 48,000 crore ($ 5.5 billion), much lower than the estimates of economists of RS 1-1.8 Lakh Crore.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)