The domestic economy looks strong and is heading in the right direction, which has helped the market to remain buoyant, says Jinesh Gopani, Senior Fund Manager, Equity at Axis Mutual Fund. Excerpts from an interview with Business Line:
After the award of the 7th Pay Commission, is it safe to bet on consumption?
It is like a booster dose. At this stage the economy needs to start picking up and consumer confidence is not very high.
Cash in the hands of the consumer is always good, so it will have some benefit and selective sectors will benefit, such as consumer discretionary and autos. It will be quite difficult to judge where this spending will be directed to, but it can go into home loans as well. The hope is that most of it will be spent or consumed. Some portion of it may even be directed towards savings. The release of ₹1 lakh crore into the system is a big thing. It is a stimulus in the hands of the consumers; but it is just a start.
Business Line:
