Quote on Festive Season Consumption Outlook by Devender Singhal, Kotak Mahindra AMC
Below the Quote on Festive Season Consumption Outlook by Devender Singhal, Kotak Mahindra AMC
The commentary from most corporations have been suggesting green shoots of recovery in consumption. A good monsoon, tax cuts, interest rate cut and the benefits to the bottom end of the pyramid by state and central government in terms of direct cash benefits were all suggestive of a good upcoming festive season. The recent rationalisation of GST rates with a sharp cut across most consumption items shall aid to further boost the demand in our view. Key segments which could see a noticeable change in demand levels are two wheelers, passenger cars and farm equipment, packaged food items, durables to name a few. We expect the festive season to see a robust demand overall with a better recovery in the entry level segments which has been a bit subdued post COVID-19. We think investors can benefit from this likely uptick in consumption by investing in funds like Kotak Consumption fund. With the 8th pay commission also to be implemented in 2026, the theme provides a good growth visibility ahead
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