Abhay Laijawala of Deutsche Bank says he believes that consumer discretionary and retail financiers stand out as the key first order beneficiaries of a jump in disposable income as consumers satiate their demand for discretionary consumption items such as white goods, electronics, 2-wheelers and other highly-priced consumption products.Moreover, rising pay will also stoke demand (albeit over a longer time horizon) for lower-end/affordable housing segment, leading to higher quantum of mortgages as consumers are able to bring in higher amount of equity contribution, he says.From a systemic perspective, Laijawala sees injection of 7CPC payments as a boost to domestic liquidity, which should be beneficial for banking system as a whole.He says as bond yields/ wholesale rates will likely move lower –ceteris paribus- predominantly wholesale funded NBFCs should also benefit. As the overall wallet of the urban consumer grows, he believes that benefits would also accrue to high-priced/premium consumption items as well.
Potential stock beneficiaries include Bajaj Finserv, GSK Consumer, Hero Motocorp, LIC Housing Finance, Titan Company and Whirlpool India, he feels.
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