“Since it ( GST) has already got approved in the Lok Sabha, there is a small expectation that hopefully, in Rajya Sabha also, the numbers will be managed and it will get approved. But still I would say that currently, the market is not discounting this event. So if this event happens, in the next two-three days, we could see a 3% to 5% further uptick in the indices,” Karwa said.
Experts believe that roll out of the new tax regime would add 1.5 percentage points to the economic growth and create a common market across the country.
“In our view, this is the first step in making India a single market. In terms of providing incentive to industry, this is the most extensive and far-reaching reform in the tax domain, which would encourage industry to grow significantly,” CII Director General Chandrajit Banerjee said.
Speaking on financial space in the stock markets, Karwa said he favoured private sector banking counters.
“We have been very clear that it is the private sector banks which have the ability to grow and they have managed their asset quality very well and they have the capital adequacy and the ability to raise capital whenever required to be able to grow. So there is a clear disconnect between the workings of the most of the new generation private sector banks versus the PSU banks,” Karwa said.