Mkts overoptimistic about GST rate rejig

The markets are hopeful that the Goods and Services Tax (GST) Council would mostly deliver what Prime Minister Narendra Modi had said on rate rejig in his Independence Day speech.

- PUNEET WADHWA

However, according to analysts, select pockets are pricing in too many expectations and have run up too fast, too soon.

Any disappointment on the rate front, they believe, could trigger a knee-jerk correction in the markets. This is especially in stocks and sectors that have seen a good run in the last few weeks in the hope of rate rationalisation during the council's meeting that got underway on Wednesday.