Tech view: Time to be bullish on consumption stks ahead of festive season?

With festival season round-the-corner, companies are hoping for a pick-up in the overall consumption, which along with the cut in corporation tax, would aid earnings growth over the next few quarters

Over the past few weeks, the government has announced a slew of measures across sectors in a bid to prop-up the sagging economic sentiment. With the festival season round-the-corner, companies are also hoping for a pick-up in the overall consumption, which along with the cut in corporation tax, would aid earnings growth over the next few quarters.

“Fiscal stimulus has finally come into play in form of corporate tax cuts. This will kick-start the virtuous cycle of consumption, private investments and boost growth. We believe tax cuts could boost GDP growth by 0.4-0.7 percentage points as corporate profitability increases,” wrote