Some Changes/Abolition Of STT Will Provide Incentive To Retail Investor: Rakesh Tarway

Nutan Gupta / 07 Jul 2014

Some Changes/Abolition Of STT Will Provide Incentive To Retail Investor: Rakesh Tarway

Read on to know what is expected from the maiden budget of the newly formed NDA government. Rakesh Tarway, Vice President, Head of Equity Strategy, Equity and Derivative Products, Motilal Oswal shares his views on the big ticket reforms which are expected from the first budget.

1) Which are the big ticket reforms that you expect from the first budget of the newly formed NDA government?

  •     Steps to boost investment and business friendliness.
  •     Path towards GST and DTC.
  •     Clear statement towards no retrospective taxes.
  •     FDI announcements in some sectors to bring in much needed foreign investment.
  •     Some changes/abolition of STT will provide incentive to retail investor.


2) Which are the sectors you are currently betting upon?

  • One should be overweight in cyclical like BANKs, infra companies, cement, PSUs. One should be underweight on defensives like FMCG, IT. Discretionary consumption stocks should be preferred within defensives. One should also hold some agri related stocks in the portfolio with budget in the mind.