The prospect of muted IT results had an impact on the range-bound movement of the Indian indices. The broad index was boosted by the hope for US inflation to moderate.
Additionally, a rise in domestic food inflation brought on by mandi prices that were rising beyond MSP and a tepid Kharif sowing led investors to exercise caution. The future trajectory in inflation is mostly determined by monsoon development and the Kharif sowing pattern in July.
Sensex declines
The gambling industry is predicted to be significantly impacted by the Goods and Services Tax (GST) increase to 28%. Both customers and game producers will probably experience some effects as a result of this tax increase.
First off, since there will be additional taxes on their hardware, software, and other resources, game makers may have to pay greater production costs. This might deter attempts to create new video games and impede the industry’s expansion and creativity.
- IT results muted, Indian indices moved, and US inflation moderated.
- Increased taxes may deter game creation and hinder industry expansion.
- Nifty gains, losses: ONGC, Eicher Motors, Nestle, JSW Steel.
The price of gaming consoles, accessories, and software may potentially increase as a result of the higher GST rate, making them less accessible to customers. This can result in a drop in sales and a general downturn in the demand for gaming products. Gaming companies may experience a decline in sales and profitability as a result.
Additionally, the gaming industry’s ability to compete with other entertainment industries may be impacted by the increased tax rate. A movement away from gaming could result in consumers choosing different leisure options that are not subject to such high tax rates.
In general, the gaming industry is anticipated to suffer from an increase in GST to 28%, including higher manufacturing costs, less customer affordability, and lost competitiveness.
In the tumultuous session on July 12, benchmark indices finished lower, with the Nifty below 19,400. At the closing, the Nifty was at 19,384.30 while the Sensex was down 55.10 points, or 0.28%, at 65,393.90. A total of 1696 shares increased, 1668 shares decreased, and 139 shares were unchanged.
Leading gainers on the Nifty were ONGC, Eicher Motors, Nestle India, JSW Steel, and Kotak Mahindra Bank, while losers included LTIMindtree, Adani Enterprises, UltraTech Cement, Infosys, and BPCL. Pharma and PSU Bank among the sectors saw positive closing prices while selling was observed in the names of banking and information technology. The midcap and smallcap indices on the BSE increased by 5% each.
