The goods and services tax (GST) became a reality from July 1st 2017. The new
indirect tax regime unifies the country by making India a homogenous market. By
removing the state barriers, trade becomes easier. While GST, in the current form
may not be the perfect, but it is better than the earlier tax regime and was due for
long. We revisit how GST is likely to benefit the economy.
Owing to this, we make few changes in our portfolio, we add Maruti Suzuki which
is expected to see strong volume growth owing to the price cuts after GST. We
continue to hold Asian Granito and Blue Star from consumption sector, Mahindra
Lifespace and Dewan Housing as housing theme. We also remain positive on
Karur Vysa Bank, Alkem laboratories, Navkar Corp, KEI Industries and Siyaram
Silk Mills.
