Logistics stocks in limelight; gain up to 6 percent

Logistics stocks saw heavy buying today and surged up to 6 per cent in an otherwise weak broader market.

Shares of Snowman Logistics surged 6.21 per cent, Gati rose by 4.67 per cent, Allcargo Logistics gained 3.21 per cent and VRL Logistics jumped 2.52 per cent on BSE. The Sensex ended the day with a loss of 69.56 points at 28,743.32.

"Logistics sector is believed to be the biggest beneficiary of GST implementation as it would ease bottlenecks for logistics companies and reduce the cost competitiveness," said Achin Goel, Head Wealth Management and Financial Planning, Bonanza Portfolio Ltd.

The states and the Centre have "converged on all areas of differences" over the Goods and Services Tax (GST) and the indirect tax reform will be implemented from July 1, unleashing the growth potential of the economy.

"GST is going to unleash a huge quantum of growth impulses. The effect will be felt and once India becomes one market, there will be positive impact on growth impulses," Economic Affairs Secretary Shaktikanta Das said today.