The topic of GST has already been beaten to death by news and analysts. Every expert has a view on it. Some say it's good some say bad, some say short term, some long term, some say already priced in some say yet to be priced in, some say it will cause inflation, some say it will not impact that much, some say it will impact this industry some say that industry. I thought let me also have a say in it although I will not cover the points that have been covered like a thousand times i.e which stocks will benefit and which will loose. I will focus on the macros and a long cycle of optimism that GST brings to Indian markets.
GST - the multi-decade macro story
Let's get the first and the most important point out of the way. GST IS GOOD FOR THE COUNTRY and Good for Stock Traders and no, it is not priced in. GST is going to keep having a positive impact on the stock markets for several years to come. This is Aadhaar scale reform and 100 times bigger than that. At the macro level, GST is going make India climb way higher in world ranking on ease of doing business due to simpler and uniform tax structure which will attract lot of new foreign players to set up shop here. It will trigger huge consolidation in several disorganized sectors that have fragmented smaller players and create huge industrial behemoths in the country with market caps that have never been heard of. It will make the "Make in India" campaign successful and make India as one of the top manufacturing hubs of the world. This will create huge employment opportunities in the country and give a boost to the domestic consumption. In short it is not a one day event, not a one year event, not a multi-year story, it is a multi-decade story. Can all this be priced-in in just few days of stock market run up? NOPES ...
How will it play out?
Markets are driven by news flow and passage of GST sets the stage for a continuous supply of highly optimistic and mega announcements for the Indian market. IT contracts will be awarded for the implementation of GST, FII investments will come flowing in, more and more joint ventures will be announced, mergers & acquisitions will happen at a hectic pace, ratings will be revised, several achievements will be made and highlighted by Indian companies that will set new benchmarks. India story was like a blocked pipe with huge potential that was not able to flow due to congestion at various points. Friends the blockage has been removed and now the potential will flow with full unstoppable force. Get ready !
How should I play it?
Without going into individual names and ideas which you can anyways get from several news & media reports, I will give you one hint. This is not the time to think small. It is the time to think big, because big will keep getting bigger and bigger and bigger. This is no place for small. Think big, do big, and grow big, there are no limits ahead. Don't get left behind and as you charge ahead into this new era, do remember the people who made it happen. Once again deep respects for PM Modi and FM Jaitley
Don't forget the monsoon
While GST is great and hogging all the limelight, don't forget the monsoon also. India has been blessed with good monsoon this year. The water tables are rising and it is always a great feeling to see the green shoots coming out of our villages and happy farmer faces with broad smiles. This is also not a small event. Ample water and electricity in the villages is going to trigger a revolution outside the mega concrete cities of our country. This is really a great combination for all round growth and optimism covering everyone in the country. We cannot live in these beautiful villages due to work and time commitments but can surely participate in this great revolution through various channels. (I will do so through stock markets .. off-course :) ) Don't get left behind .. a great journey ahead !
GST - the multi-decade macro story
Let's get the first and the most important point out of the way. GST IS GOOD FOR THE COUNTRY and Good for Stock Traders and no, it is not priced in. GST is going to keep having a positive impact on the stock markets for several years to come. This is Aadhaar scale reform and 100 times bigger than that. At the macro level, GST is going make India climb way higher in world ranking on ease of doing business due to simpler and uniform tax structure which will attract lot of new foreign players to set up shop here. It will trigger huge consolidation in several disorganized sectors that have fragmented smaller players and create huge industrial behemoths in the country with market caps that have never been heard of. It will make the "Make in India" campaign successful and make India as one of the top manufacturing hubs of the world. This will create huge employment opportunities in the country and give a boost to the domestic consumption. In short it is not a one day event, not a one year event, not a multi-year story, it is a multi-decade story. Can all this be priced-in in just few days of stock market run up? NOPES ...
How will it play out?
Markets are driven by news flow and passage of GST sets the stage for a continuous supply of highly optimistic and mega announcements for the Indian market. IT contracts will be awarded for the implementation of GST, FII investments will come flowing in, more and more joint ventures will be announced, mergers & acquisitions will happen at a hectic pace, ratings will be revised, several achievements will be made and highlighted by Indian companies that will set new benchmarks. India story was like a blocked pipe with huge potential that was not able to flow due to congestion at various points. Friends the blockage has been removed and now the potential will flow with full unstoppable force. Get ready !
How should I play it?
Don't forget the monsoon
While GST is great and hogging all the limelight, don't forget the monsoon also. India has been blessed with good monsoon this year. The water tables are rising and it is always a great feeling to see the green shoots coming out of our villages and happy farmer faces with broad smiles. This is also not a small event. Ample water and electricity in the villages is going to trigger a revolution outside the mega concrete cities of our country. This is really a great combination for all round growth and optimism covering everyone in the country. We cannot live in these beautiful villages due to work and time commitments but can surely participate in this great revolution through various channels. (I will do so through stock markets .. off-course :) ) Don't get left behind .. a great journey ahead !
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