The stock market\u2019s response has been tepid, with benchmark indices like the Sensex and Nifty registering a marginal gain of just 0.18% in the trading sessions following the announcement.<\/p>\n
New Delhi: The Indian government\u2019s recent push to rationalise the Goods and Services Tax (GST) was intended to stimulate domestic consumption and bolster economic growth. However, the stock market\u2019s response has been tepid, with benchmark indices like the Sensex and Nifty registering a marginal gain of just 0.18% in the trading sessions following the announcement.<\/p>\n
A report published in the Financial Express<\/a>, says the mood in the wider market has been \u201csubdued\u201d, with both the Midcap and Smallcap indices down 0.7% and 0.5%, respectively.<\/p>\n \u201cThe market’s excitement over GST 2.0 reforms is proving to be short-lived as the benchmarks are facing profit booking at higher levels,\u201d Nandish Shah, deputy vice president at HDFC Securities, told news agency Reuters<\/a>.<\/p>\n In their analysis, FE attributes the lacklustre response to multiple reasons. For one, the FE reports, GST 2.0 is likely to give a fillip to the economy and corporate earnings, stiff\u00a0tariffs\u00a0of 50% by the US President are keeping investors worried. According to the article, many have also used this opportunity to book profits because they believe there isn\u2019t much upside from here. Further,\u00a0foreign portfolio investors (FPI)\u00a0have continued with their selling spree,\u00a0even in September, the FE report says.<\/p>\n Saurabh Mukherjea, founder of Marcellus Investment Managers, told FE that, \u201cThe GST cuts only partially offset the damage caused by the Trump tariffs. Our largest export destination has effectively jammed us.\u201d<\/p>\n