\u201cDespite what the government had done in terms of the income tax benefits or the interest rate cut, we were still not really seeing that momentum coming back. So, from that perspective, I think this is a good combo, I can say, coming out in terms of the government policy framework, right from the announcement of the interest rate coming down, the income tax benefit and now the GST. I believe that this should start benefiting the demand,\u201d Sambre said.<\/p>\n
He outlined that demand in key areas such as FMCG and entry-level autos had stagnated and GST 2.0 could act as a much-needed catalyst. However, he cautioned that wage growth remains weak and the data is not encouraging.\u00a0 According to Sambre, investors should adopt a gradual, systematic investment strategy rather than rushing in.<\/p>\n
\u201cSo, I think it’s okay to have a gradual way of investment. I’m not negative on the markets. I feel these are all good changes. But, investors should try to invest more gradually in a systematic manner because there are these volatilities plus markets to some extent,\u201d he advised, maintaining a positive outlook for the auto and financial services sectors.<\/p>\n
According to Gautam Duggad, Head of Research, Motilal Oswal Institutional Equities, GST 2.0 is the most significant reform of the Narendra Modi government. He said that it signals a clear policy shift towards stimulating consumption.\u00a0<\/p>\n
\u201cThis is a very big move. This is the first time the government has prioritised consumption in its 11-year tenure so far. I mean, Modi 1.0, 2.0 is all over the place\u2026was about manufacturing, PLI etc. The real push to consumption started coming in 2025 \u2026.first with budget, now with this GST ….this will have direct and indirect impact on consumption\u2026.,\u201d he said.<\/p>\n
Like his peers, Duggad expects the auto, retail and FMCG sectors to be the biggest beneficiaries from the reforms in the GST structure.<\/p>\n
\u201cAuto is the biggest beneficiary, retail will benefit, and FMCG volumes will recover…but this is far bigger in terms of the signal that the government is giving. It will have an impact on equity multiples as well,\u201d he said, maintaining a positive outlook for mid-cap stocks.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cDespite what the government had done in terms of the income tax benefits or the interest rate cut,…\n","protected":false},"author":2,"featured_media":120893,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164,85378,85377,85379,85380,9727,85381],"class_list":["post-120892","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy","tag-gst-2-0","tag-gst-in-india","tag-gst-reforms-2025","tag-gst-reforms-market-impact","tag-stock-market-news","tag-stock-market-rebound"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/120892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=120892"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/120892\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/120893"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=120892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=120892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=120892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}