ETMarkets Smart Talk: Plan to allocate Rs 10L in 2080? Festive times augur well for consumption-related stocks: Rajesh Cheruvu
“Festive times augur well for consumption-related stocks, while the upcoming harvest season is key in holding up discretionary spending,” says Rajesh Cheruvu – MD and CIO – LGT Wealth India.
In an interview with ETMarkets, Cheruvu said: “Given India's impetus towards infrastructure courtesy of the PLIs, Gati Shakti, clean energy push, etc., the Infra and corporate capex themes continue to augur well” Edited excerpts:
The festive season has begun, and we are seeing signs of stabilisation as volatility has reduced. How are you looking at markets?
Short-term headwinds pose specific challenges over the next few quarters, with the impending active election period poised to generate political uncertainties until May 2024.
Further, global macroeconomic conditions notably influenced by a robust commodity cycle and the strength of the USD dollar pose challenges.
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The possibility of a weak monsoon adds to the apprehension, potentially disrupting the recovery in rural spending despite its promising long-term prospects.
Weighing these factors against the market upsurge since April 23, there is a growing argument for a deliberate 'pause for breath' in market momentum.
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However, over the longer run, India's growth story remains intact, with a steadfast focus on infrastructure spending and robust overall top-down macroeconomic fundamentals.
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