New Delhi, Feb. 3 -- Consumption-driven stocks are likely to outperform capex-driven ones in terms of earnings revisions post the budget tax cuts, which put more money in the hands of the middle class, according to Ganesh Mohan of Bajaj Finserv Asset Management Company (AMC).

While increasing hopes of a rate cut at the upcoming Monetary Policy Committee meeting would be priced in, that might not be a certainty given the downward pressure on the rupee and its consequent impact on capital outflows, Mohan, chief executive officer at the fund house, told Mint in an interview.

Edited excerpts:

Yes, the budget has provided greater-than-expected income tax relief. The allocation to capex is also reasonable-it has grown at a fair pace. However...