Trading around an event is something our markets love. The budget is an annual event. But there are other lifetime events like VAT & GST which usually fuel great market interest. The passing of GST seems to have gone off rather softly. Markets didn’t show much impact the next morning. And, the coming weeks could well see global events drive market direction. This in a sense, is a reflection of the maturity displayed in our markets. Gone are those hyper-exciting times when markets stayed high on an event for weeks together. Today, the contrarians walk out mechanically and this virtually ends the excitement that an event generates. GST is the most important tax reform in Indian history. Nobody can differ or dispute that fact. But, it is likely to hurt business and government in the near term. The enormous benefits from GST will accrue in a gradual, systemic way over the long term. Black money which is the scourge of our economy will certainly reduce. Overall, GST may not create much hype in the near term and the markets seem to have already discounted its impact. Now. It is back to global cues.
“I don’t like stress and prefer to avoid it, I never focus too much on market news and economic data. They always worry investors.”- Walter Schloss.
