Logistics stocks surge on hopes of GST roll-out in 2016

Shares of logistics firms today surged on hopes of GST roll-out in 2016.

Gati shares rallied 10.99 per cent, Patel Integrated Logistics jumped 11.02 per cent and Sical Logistics gained 7.48 per cent.

Transport Corporation of India rose 3.64 per cent, Allcargo Logistics advanced 3.5 per cent, while Snowman Logistics was up 3.26 pct

Prime Minister Narendra Modi had on Tuesday said that India hopes to roll out a new goods and services tax (GST) in 2016.

Lower tax rate and fast movement of goods and inventories will help logistics providers, say analysts.

Gati is one of the top five e-commerce logistics service providers in India, and GST will drive its next leg of growth, says an analyst.