Outlook Business Desk
According to UBS, the government employees will receive a salary increase of Rs 14,000–Rs 19,000 per month under the 8th Pay Commission.
UBS forecasts that salary hikes will lead to a surge in consumer spending, driving stronger growth in the sector.
Consumer stocks like DMart, Trent, and Hindustan Unilever are expected to benefit from increased demand.
UBS highlights key companies poised to benefit from the anticipated rise in disposable income.
Higher disposable income could result in increased purchases of goods and services across sectors.
The salary increase is expected to stimulate continued economic growth, benefiting the broader consumer market.
UBS emphasises the potential boost to discretionary spending, which will positively impact certain consumer companies.
UBS sees major retail chains benefitting the most due to the projected rise in consumer purchasing power.
According to Goldman Sachs, the 8th Pay Commission is likely to be implemented between 2026 and 2027.