A key takeaway from his speech was his focus on 'act and think local' to become globally important
Addressing the nation from the ramparts of the Red Fort on India's 73rd Independence Day, Prime Minister Narendra Modi's speech on August 15, focused on jobs, social issues, economy, business, tourism, corruption, defence, terrorism, environment, poverty, health and people's necessities, among others.
A key takeaway from his speech was his focus on 'act and think local' to become globally important.Sameer Kalra, Founder & President (Research) at Target Investing, feels the Centre is more focused on district-level improvement, which would help boost the economy rather than only a metro-level focus. Going forward, he sees a sustained economic shift towards decentralisation in coming years.
Here are the key takeaways, stocks and sectors that might be in focus during trade on August 16:
- GST brought to life the dream of ‘One Nation, One Tax’
- India has also achieved ‘One Nation, One Grid’ in the energy sector
- Government has made arrangements for ‘One Nation, One Mobility Card’
- Ban on nationwide use of single use plastic. Paper industry stocks in focus. Kalra expects a national-level announcement with regards to the same on October 2. He views the move as positive for the paper industry, which is currently down and also for innovative products for replacing plastic
- Announced roll out of 'Jal Jeevan' mission to provide piped drinking water to all households at an estimated cost of Rs 3.5 lakh crore. Stocks that could be in focus: Water (VA Tech Wabag), pipe sector (Astral Poly, Finolex Industries, Texmo Pipes etc). Kalra said the move will be positive for private players in the pipe, water filtering and cement spaces.
- India's population should be educated, healthy and skilled. Education stocks that might be in focus: Career Point, CL Educate, MT Educare, Tree House, Zee Learn, Aptech, NIIT
- India wants to be in top 50 in the Ease Of Doing Business Index
- The government will spend Rs 100 lakh crore on setting up modern infrastructure. Also, Sagarmala, Bharatmala, airports and railway projects will create jobs. Infrastructure, railway stocks could be in focus - L&T, Dillip Buildcon, IRB Infra, Ashoka Buildcon, Texmaco Rail, Titagarh Wagons, Cimmco, etc.
- PM Modi said people want Vande Matram Express, airports to come to their town. Airline service stocks that may be in focus are SpiceJet, InterGlobe Aviation, etc.
- "Earlier people aspired for mobile phones, but now people aspire for better data speeds," the PM said. Telecom stocks that may be in focus include Bharti Airtel, Vodafone Idea, Reliance Jio.
- The Prime Minister says time ripe to think about how we can boost exports by make local products attractive. "Products Made In India should be a priority for Indians. Let many more export hubs emerge in India," he stated.
- Government working on keeping prices under check and to boost development.
- PM Modi said one should not see wealth creators with suspicion as they are an asset for us.
- He urged all citizens, especially children, to travel and visit 15 tourist destinations by 2022. He called on the development of 100 tourist destinations across the country, with northeast becoming a major tourist hub
- Modi urged all farmers to stop using chemical fertilisers. Stocks/sectors that may be in focus: Fertilisers, agrochemicals, pesticides (UPL, Chambal Fertiliser, Deepak Fertilisers, Zuari Agro, Bayer Cropscience, Dhanuka Agritec, Insecticides India etc)
Kalra feels reduction in fertilisers and chemicals in farming will keep the land parcel fertile for a longer period of time. "This would be negative for the fertiliser and agri-chemical industry but positive for the government as it pays around Rs 85,000 crore in fertiliser subsidy, which is an unproductive spend."
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