GST Cuts: a boost for demand and market sentiment
Srivastava called the recent GST a great positive one for the economy and markets. “Every tax reduction, such as GST, indicates trust because money goes to the people, which is a much more efficient way to run the economy,” he said.
According to him, the consumer’s question has been modest in recent months, because buyers delayed the purchases, but the GST reduction could unleash the questioned question. “The optimism is that government policy is on its way to the liberalization of taxes, and that is an important feature for the market,” Srivastava added.
He also noted that policy priorities are shifting to smart cities and driven growth rather than unnecessary traffic expansion, which is good for investors of shares.
Auto sector to win from GST Cut
Among the sectors, Srivastava is special bullish about cars and car -Annequaries. “Every sector affected by the GST-snit, in particular a car, will be a big beneficiary. India has a world-class car industry and investors can safely bet on it,” he said.
However, he warned that smallcaps and some medium shares are in “casino territory”, with ratings at 70-100 price-to-earth roads (p/e) multiples. “Everything then 50-60 p/e needs a very strong reason. Otherwise you will trade treacherous,” he warned.
Why Srivastava avoids sustainable consumer possibilities
Although consumption shares can resemble natural winners of a GST, Srivastava is not fond of consumer duration issues. He argued that high competition in segments such as white goods diluted the impact of tax cuts. “GST applies to everyone. So, although demand can rise, the competition intensity remains very high. With 10-20 companies fighting for market share, we prefer sectors with fewer players and stronger canals,” he explained.
Instead, Srivastava prefers new-age industries and companies with differentiated offers. “India has given us e-commerce, technical platforms and service companies. Why go back to old bread-and-butter industry? The future belongs to companies that reform consumer habits, such as food delivery or service platforms,” he said.
Bank stocks: cheap but not attractive
With banking, Srivastava acknowledged that the valuations are low, but maintained its cautious position. “Banking is the most undifferentiated raw material company in the world. With so many banks, NBFCs and fintechs that compete, it is difficult for large banks to deliver superior yields,” he said.
He compared benches with raw material sectors such as sugar or paper, where ratings look cheap, but making value in the long term is limited. “Cheap is not the answer to portfolios. Being growth and differentiation,” he emphasized.
Preferred sectors: Engineering, Healthcare and New Age companies
Srivastava sees opportunities in technical companies, in particular those in battery storage and railways, as well as in hospitals and health care. He also expects shares of the capital market – makers, depositors and fairs – to benefit as more companies are mentioned and trading activities rise.
He pointed to the rise of new players such as Groww and Zerodha as examples of how fintech platforms reform the financial sector. “New participants change the name of the game. They are flexible, technically driven and the market share faster than legacy benches,” he said.
Old Economy Sectors: Limited Alfa Vooruit
When asked about traditional sectors, Srivastava admitted that raw materials such as cement and steel can see policy -driven rallies. But he remains skeptical about their long -term potential. “The future does not belong to cement or steel companies. They can yield profit in the short term, but they will not create Alfa for long-term portfolios,” he said.
Instead, he urged investors to embrace change. “Retire the old one. Invest where the future is. E-commerce and New Age companies can look expensive today, but three years later you will be happy that you were there,” concluded Srivastava.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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