After opening the day marginally higher, share markets in India witnessed volatile trading activity and are presently trading in green. Sectoral indices are trading on a mixed note, with stocks in the realty sector and stocks in the auto sector witnessing maximum buying interest. While stocks in the metals sector are leading the losses.
The BSE Sensex is trading up by 95 points (up 0.3%) and the NSE Nifty is trading down by 16 points (down 0.2%). Meanwhile, the BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 64.81 to the US$.
In news from the GST space. Under pressure from the government to pass on the gains of GST cut to customers, several consumer goods players have reduced prices of products sold through the modern trade formats, such as big retail chains.
Companies such as Dabur and ITC have announced price reductions of 8-10 per cent and 10-40 per cent, respectively. But players such as HUL and Patanjali are still working out the details on several products, although duty cuts were effective a week ago.
The FMCG industry is one of the major industries to benefit after the GST council revised tax rates lower for a wide range of categories.
On November 10, the GST Council reduced tax levied on 178 items, including deos, detergents, shampoos and chewing gums from 28% to 18%, effective November 15. But the inability of companies to immediately share the gains with consumers prompted the government to write to them.
Central Board of Excise and Customs Chairperson Vanaja Sarna wrote to FMCG companies asking them to immediately revise MRP on all products in line with the latest reduction in GST rates.
GST’s Impact on Aam Aadmi’s Spending
As we have saying, GST is a much-needed economic reform. It should eventually expand India’s narrow tax base and increase government revenues.
