terms of employment in smaller services and smaller suppliers therefore some of these sectors have to be revived efforts are being made the recent announcement on making lastmile finance available for construction projects is a good step some other measures like getting some support for nbfcs is a good measure it is a combination of various things that will lead to the revival there is no one silver bullet to solve the problem the government is trying multiple things over a period of time and a drop in interest rates over a period of time will bring back investment if the interest rates continue to drop fast at some point investment will pick up and it will go beyond government investment i do believe that lower interest rates at some point will trigger the investment cycle do you see that pick up because corporates cannot really justify capex until demand picks up meanwhile gdp forecasts have been lowered as we continue to see corporates lag behind how long is this lag effect going to lastit is going to be a measured recovery which will take 12 to 18 months fy20 is washed out fy21 will be a struggle i dont know what stock markets are pricing in because stock prices are at an alltime high banking stocks are at alltime highs and the underlying economy is bad i am just trying to understand what is going onthe way i look at it the whole period has created a polarised kind of situation where there is a flight to quality and there are a few stocks which are priceless in some ways and there are others which have no takers at all you have to dive deeper to know that the stock market is being driven by fewer stocks the broad market is not as good as the index looks the reverse is also true there is a flight to quality and a few stocks are just getting disproportionately priced for their qualitywe have only discussed the bad news where is light at the end of the tunnel if the construction industry picks up due to some of the government measures it will have an impact low interest rates is good news some of these are good news and these are going to finally drive demand and growth it is not that everything is bleak like i said low interest rate will drive investment some of the government measures on tax will drive investment in the medium term investment also needs lead time to happen even if you decide to invest today it will take 12 to 18 months or even two to three years to put up that capacity some of these do take time but i have no doubt that low tax low interest rates will drive investments et now published on nov 28 2019 at 0910 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments