GST could be the trigger to propel mkt higher: Ajay Bagga

Market expert, Ajay Bagga believes 7800-7900 is a strong base for the market but it is now looking for a catalyst to go higher. Technically, the market is looking weaker becasue of lower peaks and lower bottoms. The passage of goods and services tax (GST) in the Winter Session of the Parliament could be that catalyst. Although non-passage of GST won't be such a big dampener on the market, the passage of the bill would be a definite sentimental booster, says Bagga in an interview to CNBC-TV18. It would also help FIIs relook at India, he adds. Speaking on the Fed rate hike, he says the impact won't be that much because it has already been factored in. On the December series, he says the rollovers have been strong in individual stocks, Bank Nifty and Nifty as well. The rally witnessed by the market today was broad based one basically because the US market was shut.  When asked which sectors would benefit if GST comes through, Bagga says it would be logistics, consumer durables, autos and almost the entire manufacturing industry. According to him, the Indian consumption story is slowly recovering if one were to look at the auto space, especially the two-wheeler space. Going forward, cement will also be a leader on back of government road projects and smart city initiatives. IT too is likely to perform on back of US Fed hike and weaker rupee. However, he is very skeptical of the pharma space and says, one should expect more pain as more inspections are likely going forward. For the entire interview watch video.