Abhishek Anand, fund manager at Centrum Broking, said auto and consumer durable companies are likely to be the prime beneficiaries of the Seventh Pay Commission implementation.
Mr Anand said that generally people tend to increase consumption-based spending first after an increase in income.
“We see demand getting generated for auto and consumer durable led sectors,” Mr Adnad said. (Watch)
Two-wheeler maker Hero MotoCorp rallied 4.51 per cent on Wednesday after the Cabinet approved the recommendations of the seventh pay panel. Maruti Suzuki and Tata Motors shares also gained over 1 per cent each.
Higher wages could also lead to a demand for real estate and this will also boost housing finance companies, he added.
Further, he said that cement companies are looking attractive for investment as demand increase is visible in some parts of the country, which will support further price increase in cement.