No sector incorrectly priced, the market remains efficient despite the global uncertainty

The Indian consumption story received a new boost with the radical GST rate rates from the government, in particular for the benefit of car manufacturers, insurers and FMCG companies. Experts believe that this movement will breathe new life into the momentum about the consumables, even if the uncertainties of global trade continue to weigh on the sentiment of investors.

When asked about the prospects for cars, Mark Matthews said in an interview with ET now: “Yes, that would fit in with the consumption story of the consumption story Given the large reduction of taxes for cars, so the insurance would be. There are a lot of things that benefit from fast moving consumer goods. So yes, absolutely in the story.”

However, the conversation was quickly widened then cars. Place the GST announcements, Marktwijkers look at potential profit for selected dairy and electronic companies. Matthews recognized this trend and said, “Yes, you are right, everything that will be consumer -related, will probably come out stronger than before, the rates unexpectedly became a big problem for India. And on the rates I could add that we don’t really know what Donald Trump wants to be. That the Americans want.”

He added that the unpredictability of the US President’s position might be able to work in favor of India. “The good news is that if you look at all the other countries that have experienced this and there is a long list, he can change his mind. So I am pretty sure that bridges can be restored. India just has to be creative in how it approaches this. So we have to give Donald Trump a victory.”

That view was reinforced by recent exchanges between the two leaders, where both parties emphasized friendship and cooperation. With this background, attention is shifting to beaten export -driven sectors such as these and pharmaceutical products.

Matthews then hit a carefully optimistic tone. “I have been thinking for a while that the IT shares are too cheap … When shares are more than 20% lower, you have to be interested in it and the IT room space 20% drops from the start of the year.” He acknowledged the cyclical relationship of the sector with banks, but suggested that a bending point could be nearby. As for something to avoid, Matthews has not eliminated any sector. “I don’t have any strong antipathies right now. I can’t say that there is something that stands out if I am very wrong priced. It has been an efficient market.” About India’s long-term strength in IT services, Matthews agreed that global customers are unlikely to find alternatives easily.

“I hate to say that I agree with you, because in the end no one is irreplaceable. There must be a country in the world that could do this, but it would take many years, not just a few months to make that transition in education and infrastructure. The American companies have built up a lot of money.

With GST cutting consumption-driven sectors and IT valuations that look attractive after a steep correction, the vision of Matthews suggests a balanced but hopeful prospect for Indian shares, the global uncertainties offered ease in the coming months.