Govt may focus on FDI in multi-brand retail, Prevention of Corruption Act amendments: Deutsche

Abhay Laijawala of Deutsche Bank says following the landmark UP election verdict, investor expectations have risen that the BJP will move ahead on vital reforms that jumpstart the animal spirits of the Indian corporate sector.

These expectations may be belied as the government is focused more on longer term, bottom-up structural reform than any short-term stimulus that shifts the domestic narrative on either corporate earnings or the broader economy, he feels.

Among some of the landmark reforms beyond the GST, he sees a high probability of FDI in multi-brand retail, agricultural marketing reforms and amendments to the Prevention of Corruption Act.

Laijawala further sees the consumer staples sector being a standout beneficiary of FDI in retail and agri reforms while the capex/materials sectors and PSU banks will be beneficiaries of faster approvals following the amendments to the corruption act.