While pundits predict equity benchmark indices hitting all-time highs once the constitutional amendment to usher in the Goods and Services Tax regime is passed, the indices on Wednesday appeared to be unimpressed, falling about a percentage point each.
The BSE Sensex lost 284 points to close at 27,697.51 while the NSE Nifty fell 78 points to close at 8,544.85.
“Even as the markets had largely discounted the passage of the GST Constitutional Amendment Bill, and sold off in sympathy with the global markets, we will see some spurt before the final results come out,” said Kamlesh Rao, CEO, Kotak Securities.
Foreign investors took the opportunity to buy, picking up net equity of ₹578 crore, while domestic institutions sold net equity of ₹800.75 crore.
Commenting on the effects of GST on the market, in a recent interview with BusinessLine , Nilesh Shah, MD, Kotak Mutual Fund, said: “The market has not priced in the chaos that could come in terms of GST implementation in the short-term.”