Elastic in markets, H2 growth powered by growth consumption and earnings: Sumit Bhattagar

Sumit Bhattagar:

The global economy continues to turn to us, and will continue until Donald Trump Office is in Fissure. Therefore, what we need to focus is a domestic economy, and that is our focus. If you look at the home economy, we are doing well. The financial and financial measures taken by the RBI and the central government should help improve your growth in the second half. We expect all liquidity measures, the government should see a slight improvement in both the government’s economy in the next two to three months, and we should see a slight improvement in both the GDP growth level and at the corporate earnings level. Regarding the number of these quarters, when they are probably widely corresponded to the expectation, the main solution for us is that the earnings are slowing down in the downgrade cycle or earnings downgrade, and maybe we may be in the following quarters or maybe the following quarters for Q2 earnings, and here we expect earnings slowly. As far as valuations are concerned, our markets are still very valuable, whether it is your head heading indicators or if you compare it at a yield distance or if you compare the premium that we enjoy other emerging markets, which corresponds to the long -term average. Therefore, you are in a position where the evaluation is reasonable and the way to improve the way.

ET Now: You mentioned earnings. Therefore, we should expect that the second half of the current financial year will be better than the first part and, more importantly, when will the breakout time be because we are in the consolidation category for a very long time, and a question that everyone asks is what way we go and more importantly will end this phase soon?

Sumit Bhattagar:

As a consolidation case, or when the markets are out, we may not be the right people. We believe that investors should look at the horizon of the long -term investment and continue to participate in the markets as the Indian story is strong. So, yes, we expect correction for some time in the market, but we do not expect big prices to improve here in the markets here. And surely we expect some choice in the corporate earnings led by your usage, however, a choice in capex activity, which leads to some earnings led by areas such as NBFC, Cement and FMCG.

Living events

ET now:

And when we talk about the theme of consumption, I want to take it a little further. And now, from here, the beginning of the second five to six months or the beginning of January will be at least festive days for Indian markets. We will start with the 15th August Gust, and then until the new year we will have all the festivals. Considering all this, there will be a theme of consumption, demand for consumption, which will choose. Let’s say FMCG, automobile, travel and tourism and hotel fields. What do you take on it, and how do you see the use of a consumption in the second half?

Sumit Bhattagar:

I would say that consumption looks good from the next two to three years of view. One is that in the near term, the impact on RBI credit has begun to simplify. You should choose a little bit in credit growth or retail credit, which supports your consumption. Second, your income tax cuts begin to flow in the hands of people and get a significant portion, which should also support your consumption, as well as the interest rate reduction and liquidity available in the economy, which should reduce the borrowed costs and forced the customer to spend a little more. And if you push it forward, then your State Pay Commission and the Central Pay Commission are left next year. Therefore, effective money flow may occur in CY27, but it will significantly support your consumption. If you look at the government stand, inevitably, what happened, the government was fully focused on the capex and actually imposed a little more tax on consumption. Therefore, in the form of a taxes tax on individuals or tax rates on GST, which has taken three to four lakh crores by the hands of customers for the last two years, we expect this to move. Therefore, we expect that some ease of GST is also moving to support consumption, which is why we expect the second half festival, yes, expect to do good, but even over the overall level in the next three years, we should see significant traction in consumption.