Green Stocks Sep 4- GST Cuts Fails To Enthuse Investors

After starting the day as per the script, with prices trending up, the reality of other pressing issues and profit booking seemed to trip up the Indian markets today. While the GST rationalisation, especially the fact that it happened in 20 days between announcement and formalisation, with start just another 18 days away on Sep 22, was welcome and a long-term plus, it seems investors have much else on their minds. 

That explains the immediate profit booking seen in most stocks, with almost all giving up all or a significant part of the gains they registered in the early trades. The slippages will worry many investors, who now know that it will take much more to restore bullish spirits in the markets. 

The GST cut on most renewable energy equipment from 12% to 5% will do its bit to keep prices stable, as manufacturers have a poor record of passing on cuts in India in any case. 

The US situation, which is getting seemingly worse by the way, with even Trump's advisors happy to exhibit their lack of understanding or refusal to get into details, is increasingly headed towards a wall. A wall that might be grossed perhaps when the new US ambassador to India, said to be a close confidant of the President, formally takes charge, develops a more nuanced understanding of Indian sensitivities, and of course, gives better pointers on handling the US administration for mutual benefits. Until then, with FIIs continuing to stay away, India's retail-driven SIPs are the only thing keeping the market afloat. Those SIPs look safe for now, as the GST cuts put a little more money into pockets, and make the case for an interest rate cut later this month by the RBI.

List of Green Stocks