New Delhi, Sep 3
The upcoming changes to the Goods and Services Tax (GST), likely to be announced on Thursday, should trigger a decisive, consumption-led turn in India’s growth cycle, a report said on Wednesday.
This adds to earlier stimulus measures like welfare spending and monetary easing, and has secondary benefits like formalisation.
According to Emkay Global Financial Services' report, India’s earnings cycle is bottoming out, and this could be the catalyst for an upgrade cycle to kick in.
"We maintain our September Nifty target at 28,000 and stick to Discretionary as our biggest overweight. The best way to play the cycle is through the auto ecosystem – OEMs, ancillaries, and lenders," the report maintained.
"We expect GST 2.0 to be a game-changing reform and not just incremental adjustments," it added.