Shares Of Online Gaming Companies Boomed Due To 28 Percent GST, This Stock Fell By 22 Percent

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Online Gaming Company Stocks: With the GST Council announcing a 28 percent GST for the online gaming industry, shares of online gaming companies have seen a sharp decline in the Indian stock market. Indian online gaming companies Nazara Technologies, OnMobile Global and Delta Corp recorded sharp declines. Shares of these online gaming companies are trading at a steep decline in the stock market on Wednesday.

What Gaming Industry Experts Say?

Finance Minister Nirmala Sitharaman said after the GST Council meeting yesterday that the decision has been taken after discussions with the states and the government has no intention of harming the gaming industry. Despite this, many representatives of the gaming industry say that this 28 percent GST will eat into companies’ earnings.

Know what Nazara Technology said

Nazara Technologies has said that this 28 percent tax will be applicable only on the company’s skill-based real money gaming segment. This contributes 5.2 percent of their total consolidated revenue for FY2023. The company also said it has estimated the impact of the tax hike on the company.

How much has decreased in which company?

Shares of Nazara Technologies were down 14.2 percent and currently trade at Rs. 677.50 per share is trading. Shares of OnMobile Global fell 8.9 percent and are currently trading at Rs. is seen at 76.40. Shares of Delta Corp are witnessing the highest fall of 22.70 percent at Rs. 190.70 at the rate. Although Nazara Technologies has rallied 21.6 percent and Delta Corp has rallied 15.9 percent so far this year, today’s decline has washed away any previous gains.

Despite a positive opening, the stock market has broken from the upper levels. The BSE Sensex slipped nearly 330 points from its intraday high to settle at 65,811 during the trading day. But IT, metal and FMCG stocks are witnessing heavy losses due to sell-off. The index currently stands at 65,500. Similarly, Nifty is also falling and trading near 19,400. Infosys and Ultratech Cement are the top losers in the Nifty. Yesterday i.e. July 11, BSE Sensex rose 273 points to close at 65,617.