GST cuts could start new consumption cycle; buy the dips in unfairly punished stocks: Daljeet Kohli

Despite global uncertainties and market volatility, India’s long-term growth and consumption story remain strong, said Daljeet Kohli, Head of Equities at Roha Asset Managers LLP.

Speaking to ET Now, Kohli noted that short-term hiccups caused by geopolitical tensions and tariffs will not derail India’s growth momentum. “Volatility is something we have to live with in equity markets. But the big picture is intact. India’s consumption story is here to stay for the long term,” he said.

According to Kohli, the proposed GST cuts could act as a “game changer” for domestic demand. He explained that over the last few years, urban households struggled with inflation, while rural areas faced weak income growth due to erratic monsoons. Now, with inflation easing, interest rates being cut, and government schemes putting more money into rural hands, both engines of growth—urban and rural consumption—are set to fire together. A GST cut of 5–10% across categories, he added, could kickstart a fresh consumption cycle.


Kohli further pointed out that while markets have recently slipped below key levels, selective opportunities are emerging. “If the market has disproportionately punished certain stocks, those may turn out to be the best buys once sentiment improves,” he noted.

Market uncertainty an opportunity for long-term investors

On the stock market outlook, Kohli argued that periods of uncertainty offer opportunities for long-term investors. “You don’t need to time the market perfectly. If you believe these issues are temporary, you can deploy capital gradually and benefit as conditions stabilise,” he advised.

Beyond consumption, Kohli highlighted sectors less affected by tariffs, such as farming, agrochemicals, and certain segments of pharmaceuticals and contract manufacturing. “Some companies can easily pass on the impact of tariffs, while others, like CDMO players, won’t feel much pressure. Investors should go sector by sector, company by company, to find those that can withstand current challenges,” he said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)