India’s stock market is strong
Indian currently Stock market Is in a strange situation. On the one hand, there is a concern due to trade tariffs and global uproar in the world, on the other hand there are some good news and opportunities inside the country. Investors are currently looking at two things, first, tariffs related to tariffs and second, possible cuts in GST on 22 September.
Tariff’s tension still remains intact
Prateek Aggarwal, MD and CEO of Motilal Oswal Asset Management Company during a media interview, says that the concern of tariffs still remains the biggest hurdle. He told that as soon as the matter of a big deal comes out, there is a stir in the markets of the world. The tariff deal related to India is also expected now, which can give some relief to investors and return to the market. According to him, a new energy can come in the market as soon as this matter is resolved.
GST cuts can increase shopping
On September 22, some changes are being expected in the rates of GST. Prateek Aggarwal believes that if the tax is low, then the common people will get direct benefit. With this, they can go beyond everyday need and spend on things that they wanted to take for a long time, such as a new mobile, fridge, AC or washing machine.
He says that when some money is left in the pockets of the people, they can put it to buy better things. This will benefit especially those companies that make sustainable consumer goods. That is, things which are not purchased in every house every day, but when purchased, good expenditure is incurred.
Now not cheap shares, turn of growth stocks
Prateek Agarwal also clearly said that now the market time is not of value or cheap shares. Now is the time of growth stocks i.e. such shares behind which are such businesses which are going to grow fast in the coming times.
He told that after Kovid, in the beginning, Value Stocks had given good returns, but now the growth sector has gone ahead. In the coming years, some special sectors can show fast. Such as electronic manufacturing, solar and wind energy, electric vehicles, luxury goods, defense and factory sectors.
They believe that when people will shop more due to GST cut, then obviously those things will be made somewhere. That is, work will increase in factories, and manufacturing companies will get direct benefit.
Always keep balances balanced
When Prateek was asked if he had made any change in the sector of his investment, he clearly said, no. He says that the sectors which are already in the portfolio, are still there, such as shares related to hospitals, logistics, defense and manufacturing. They believe that different sectors do good at different times, but investment should always be balanced.
The people of the country are now handling the front, not foreigners
These days, selling of foreign investors is going on in the market. Prateek Aggarwal gave three big reasons behind this.
- First-Interest rates in America are now gradually decreasing, but currently foreign investors are withdrawing their money.
- Second – Domestic investors are now investing more money in the market than before. Constant investment is coming through SIP and mutual funds.
- Third – There is a flood of new shares in the market. The new supply has increased greatly due to the sales of IPO, promoter share and exit of private equity funds.
He said that when so many new things come to sell in the market, the market usually gets cold. But the trust and mood of the people here is still strong. This trust is hinging the market.