This combination could lead to very healthy earnings

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canada goose uk outlet The International Monetary Fund (IMF) and the World Bank have trimmed India’s gross domestic product (GDP) growth prospects by 0.9 percent and 1.5 percent, respectively.India’s growth is projected to fall to 6 percent, the World Bank said on October 13.»When the IMF and World Bank beat the drums of a slowdown of any economy, (it) means that the phase is already over and better times are ahead. Recently, IMF as well as World Bank trimmed India’s GDP growth prospects by a whopping 0.9 percent and 1.5 percent, respectively which, when historically seen, acts as a good indicator to identify bottoms,» Jimeet Modi, Founder CEO, SAMCO Securities StockNote, told Moneycontrol.»Considering a holistic perspective of corporate tax cuts, recapitalisation of PSU Banks, FPIs paring their short positions, continued domestic inflows all point to one thing that may be the worst is behind us,» he said.That said, experts feel that economic activity is likely to remain muted and investors will be better off with companies that are likely to benefit the most from the corporate tax cut.»Investors need to focus on sectors that are likely to do well and within those companies that were paying full corporate tax. This combination could lead to very healthy earnings growth in FY20,» Rusmik Oza, Head of Fundamental Research, Kotak Securities, told Moneycontrol.The second step would be to match these sectors with their historic valuation range and check if there were gaps and which companies were reasonably valued, he said.»Few sectors that are bucking the slowdown and reporting healthy topline growth are insurance, private sector banks, power, healthcare, paints, consumer discretionary, plastics, larger NBFCs, and retail. canada goose uk outlet

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