Will see a shift from mid to large caps: Systematix

The implementation of GST in April 2017 with other measures like a possible repo rate cut next fiscal by around 50-75 basis points along with good news from the Budget like higher infrastructure spending and rationalising of taxes could help earnings growth back to double digit, says Jaspreet Singh Arora, Head of Reasearch, Systematix Shares & Stocks. Earnings have been witnessing a low single digit growth since many years now.He says near-term pain due to demonetisation is inevitable. Calendar 2018 will be much better.He likes UltraTech and Ramco Cements cement sector and HDFC Bank, IndusInd among bank stocks. He adds that Equitas and Ujjivan will make a faster recovery than other NBFCs.Watch video for more.