Key Points
Tikona Capital's Sumit Poddar believes that the fall in inflation, crude prices and commodity costs are driving a positive shift in consumer discretionary stocks, and predicts that this trend will continue..
As customers regain their spending power, there will be growth across the consumer discretionary sector, especially in areas like footwear and railway capex..
Poddar recognises that IT spending is down, but notes that small or midcap IT services companies are likely to show better traction..
Sumit Poddar, Founder & CIO, Tikona Capital, says starting from footwear, possibly other consumer discretionary spends would also start seeing things improving gradually, if not immediately because most of the consumers have got impacted severely because of the inflation and that is likely to turn back..
Also, during March, I am sure we saw most of the stocks getting hammered and possibly things are coming back on that side and which is why, as you mentioned, some of the footwear stocks are back with the raw material prices going down and possibly even the interest rate hike and the inflation moving down will help all these consumer discretionary stocks going forward..
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