After the GST rates are finalised, ITC is expected to gain as fears of 40 percent rate abate. ITC holds 7 percent weightage in the Nifty.
Global markets are not supportive but the crucial decision on goods and service tax (GST) four slab rate structure may keep Indian market in green Friday. The market may remain volatile with global concerns overhang. SGX Nifty indicates a negative opening.
The GST council has finalised a four-tier GST tax structure of 5, 12, 18 and 28 percent. Essential items are to be taxed at 5 percent while white goods like TV and refrigerators may see some tax relief. The GST panel has also approved cess on tobacco, luxury products and sin items. This cess will not be additional and won’t add to states or consumers burden. Taxation on gold will be decided upon the revenue flexibility.
Meanwhile, equity benchmarks ended at nearly four-month closing lows. The 30-share BSE Sensex was down 96.94 points at 27430.28 and the 50-share NSE Nifty fell 29.05 points to 8484.95, the lowest level since July 11, 2016.
