Recovery in demand, consumption stocks likely to be short-lived: Analysts

Measures announced by the FM on Monday, according to A K Prabhakar, head of research at IDBI Capital, though will give some fillip to consumption, demand will be limited into buying only essentials

A consumption-led recovery in the economy will take its own time and will not be helped much by the government’s measures announced on Monday, say analysts, who feel that the monetary help will be used to stock up on essentials instead of high-end discretionary items. The markets, they say, are well aware of the government’s fiscal constraints and any recovery in demand and consumption-related stocks due to the measures announced will be short-lived.

“The markets are not too enthused by the measures.