Economic Survey 2019: Strong growth potential for discretionary majors

Economic Survey indicates an increase in spending by households on these, compared to necessities

The Economic Survey, presented on Thursday, had a positive takeaway for companies in the consumption space. It highlighted increased household spending on discretionary items such as clothing, footwear, housing and maintenance, health and education, as compared to necessities.

This would translate to better growth for stocks in the consumption discretionary space such as Bata, Titan Company, Pidilite, and Asian Paints, among others.

Supportive demographics of the country and the geographic spread tilting more towards urban areas were giving a demand boost for the discretionary space. In fact, their urban focus helped some discretionary majors to clock relatively better volume growth