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The major Asian stock markets have opened the day in green with stock markets in Korea (up 0.8%) and China (up 0.4%) being the top gainers. Major stock indices in Europe and US ended their previous session on a positive note. The rupee is trading at 66.09 per US dollar.
Indian stock markets too have opened the day on a positive note. BSE-Sensex is trading higher by 63 points (up 0.2%) and NSE-Nifty is trading higher by 16 points (up 0.2%). Both S&P BSE Midcap and S&P BSE Smallcap have surged upwards and are trading higher by 0.7% and 0.8% respectively. Major sectoral indices have opened the day firm. Stocks from capital goods & engineering and telecommunication sector are witnessing maximum buying interest.
As per an article in leading financial daily, Mahindra & Mahindra has managed to increase its market share in the Light Commercial Vehicle (LCV) segment. The company has the largest market share in this segment and has taken over the likes of Tata Motors in this segment. Reportedly, Tata's market share in LCV's has come down from 48% in 2013-14 to below 37% in April-October period this year. During the same period, M&M market share has increase from 36.39% to 42.61%.
The launch of the brand 'Jeeto' has immensely benefited M&M to gain market share in the LCV segment. The small trucks in the LCV segment are used for intra-city transportation of goods. Further a boom in the e-commerce and retail segment bundled with easy financing option is expected to further boost the demand for LCV's in the near term.
As per an article in leading financial daily, National Institute of Public Finance and Policy (NIPFP) proposed the standard GST rate to be in the range of 23-25%. The empowered committee of state finance ministers had asked the NIPFP to rework the GST rates last year. However, recommendations of committee are not binding on the government and are just a suggestion.
The key thing to watch out for is the recommendation of the Subramanian committee which will soon submit its report. The report of this committee will depict the likely rates of GST. Reportedly, rate could be in the range of 18-19% if there is only a single GST rate. Further, if goods and services are taxed at different rates the GST rate is expected to be in the range of 23-25%.Goods are likely to be taxed at three different rates.
Government will have to go all in to pass the GST bill in the winter session of parliament. Earlier, Finance Minister, Arun Jaitley, stated that the government has the votes to pass the bill in the winter session of parliament. However with the opposition parties reluctant to pass the bill, the clearance of the bill will be an important one for the government to kick-start the reform process.
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