As M Karunanidhi-led DMK party failed to get a winning mandate in the Tamil Nadu Assembly elections on Thursday, shares of the family-owned media company Sun TV Networks fell 13.25 per cent on the BSE, closing at ₹370.90.

However, shares of companies in the logistics sector recovered sharply, on hopes that the Centre may now find it easy to push the Goods and Services Tax Bill in the ensuing session of Parliament that had been stuck in Rajya Sabha for want of adequate numbers.

The election loss of DMK came as a surprise, as many exit polls had predicted the party returning to the helm of affairs at the State. On Tuesday, in fact, after the exit polls announcement in its favour, the stock had surged 10 per cent.

All of those gains were erased on Thursday when the stock fell nearly ₹57 in a single day. Sun TV is owned by Kalanithi Maran, the grandnephew of DMK president M Karunanidhi.

Raj TV hits upper limit

Surprisingly, Raj Television Networks on Thursday hit the upper circuit. The stock closed up 19.95 per cent at ₹73.65.

In another surprise, Jayalalithaa-led AIADMK’s victory failed to lift the shares of TVS Motor Company, which manufactures the Scooty brand scooterettes. The AIADMK in its manifesto has promised 50 per cent subsidy to buy mopeds for working women in Tamil Nadu. Shares of TVS Motor Company fell to ₹296.45 against the previous day’s close of ₹297.65 though intraday the stock touched a high of ₹301.90 on the NSE.

GST passage

However, logistics shares, such as Gati, Snowman Logistics, Allcargo Logistics, Patel Integrated Logistics and VRL Logistics edged up sharply after Mamata Banerjee, West Bengal Chief Minister, said she will support GST Bill despite ideological difference with BJP.

Trinamool Congress secured an overwhelming majority in the West Bengal Assembly.

GST will be a game changing reform for the Indian economy. It will develop a common Indian market and reduce the cascading effect of tax on the cost of goods and services. According to analysts, logistics firms will be the biggest beneficiaries, as GST implementation will facilitate seamless movement of goods across the country.

The GST Bill had been stuck in the Rajya Sabha, where the ruling Bharatiya Janata Party does not have a majority.

Liquor stocks tumble

Liquor shares such as United Spirits, Radico Khaitan, Globus Spirits and Tilaknagar Industries fell as investors worried over gradual imposition of liquor ban in the State by the AIADMK government.

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