Talking about the market forward move Elixir Equites director Deepan Mehta Said said that due to cell on news, the market has shown slow moves as the market had already estimated the reduction in GST rates. Due to which the effect of rate cuts did not show as much as it should have been seen on the market. However, rate cuts are poditva of many companies for long term. The market was stuck in a limited range due to corporate earnings, but now it is expected that corporate earnings will be improved after the GST rate cuts. After this festive season, revival will be seen in corporate earnings and the market will be seen again.
Consumption shares will first have revival
Deepan Mehta further said in this conversation that we are seeing revival in consumption shares. Also, revival is also possible in apparel, electronics, hotel sector. India’s conjunctivity basket has changed completely, earlier there used to be FMCG shares but now when we talk about conjugation, there can be good recovery in Low Cost Big Income Retails, Appliances, Travel and Tourism, Hospital stocks.
In retail, our attitude is positive in the other stock, apart from special tract, demart. If we talk about conjunctions, Low Cost Big Income Retails which focus in Tier 2-Tier 3 such as Vishal Mega Mart, V Mart shares have benefited from GST rate cuts. At the same time, shares of Bata, Metro, Go Fashion also benefited. At the same time, the loan volume of Bajaj Finance may increase, which will show the company to benefit further. Our investment will be recommended in all these companies.
Auto sector is also very big caner sector
Due to the reduction in GST rates, the auto sector is also a large caner sector and can become a big trigger in a two-wheeler and for wheeler. Our view remains positive in Hero MotoCorp. The company’s valuation also looks quite respective. Maruti is good at the same time but we are bullish on M&M. Eicher Motors is expected to be a momtum.
Cement companies will get the benefit of GST rate cuts
Cement companies will get the benefit of GST rate cuts. Companies who are constructing themselves may decrease their slightest steps. There is a lot of chinese for investment in the sector sector. Ambuja, Adani Group’s company, ACC, JK Cement shares look good.
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