Auto & media to benefit from GST; stay away from beta: Experts

Sanjeev Prasad of Kotak Institutional Equities says Goods & Services Tax (GST) is a good and sensible taxation policy.

The Rajya Sabha passed the Constitution (122nd Amendment) (GST) Bill in a bi-partisan manner paving the way for the introduction of GST regime in India.

He says the Government should be able to implement GST from April 1, 2017 although a significant amount of legislative and administrative process remains to be completed.

Sectors such as automobiles, consumer durables and media and entertainment will be positively impacted while marginally negative effects are likely in sectors such as telecom, Prasad feels.

Sanjay Mookim of Bank of America Merrill Lynch says he thinks implementation challenges will now gain prominence and Q4FY17 can be particularly volatile.

India's strong reform momentum may help it stand out in any near-term correction, but he thinks that it is unlikely to insulate the market from downside, he says.

December 2016 Sensex target of 26,000 implies a 5 percent fall. If the market was to correct to historical average P/E, it could imply a decline of 15 percent, he feels.

Mookim says he is staying away from beta in Indian equities at current valuations.