Affordable housing, rural are the themes one should look at entering the GST phase, says Abhimanyu Sofat, VP-Research, IIFL, talking to ET Now Edited excerpts:I think so. For GST, you need to be very sector specific in terms of where the challenges are going to be. Clearly something is happening on the textile side where a lot of strikes have been called. That is one pain area where one would find issues. A lot of the organised guys are also grappling with the issue with regard to forms etc.Having said that, over a long period, GST will be pretty good. You are going to see a significant shift happening from the unorganised to organised over the next couple of years as compliance improves across sectors.In the market, the correction has happened. Do I think that the correction is going to be pretty deep? I do not think so. It is likely to be more of a shallow correction considering the kind of inflows we continue to get. There is a change in how the investor is also reacting earlier when the market used to tank by this much, they typically used to talk about selling out of the market and booking profit, today they are coming back and saying can I average, can I average?A perception difference is happening in the market over the previous falls. Overall, the earnings season is going to be pretty critical because more than 25% of the stocks are trading at above 30 multiple which is quite expensive from a historical perspective. As the earnings season kicks in, it is going to be pretty interesting but themes like affordable housing , rural are the themes one should look at one looks at entering GST phase.In the short term, there could be issues. Our channel check is suggesting even the organised guys are right now not 100% sure of how GST will impact them in the short term because a lot of their suppliers may not be enrolled for GST. Having said that, over a long term, when this gap reduces in terms of pricing, textile is a very interesting sector to look at. So, plays which are more on the rural side, something like a Kewal Kiran would be quite interesting in addition to companies like Arvind.Another segment which could be very interesting to look at is sanitary ware, where 40% of the market is unorganised. If you look at the cooler segment, for a player like Symphony , the growth opportunity is pretty big for the shift from unorganised to organised. The only issue is that the valuations are already pretty high. So overall there are always pockets which one can play on because of this shift.Clearly there is a short term challenge in terms of inventory losses that they will face. In addition to that, the GRMs have been pretty weak recently. Considering those factors I think from a valuation perspective you would require around a 15-20% kind of a correction to add these stocks in your long term portfolio.There were lot expectations from the Reliance-BP alliance that they are going to bring things on the retail side, fortunately for the OMCs that did not happen in the last announcement which we had a couple of weeks back.Going forward, there is valuation which always has been the case that they are decent relative to global multiples for the Indian companies but I think the short term concerns are there and we need to see those short term concerns out especially on the inventory side and the weak GRM before one starts buying these stocks.The thing with the airline sector is that capacity addition is never a problem because you just need to lease more aircraft and then you get more capacity. Most of the network that you build in it is to take care of the losses that you incur when you are not making money. Having said that, managing something like Air India is a very daunting task considering the kind of issues you are going to face on the employee front. The union of Air India is believed to be pretty aggressive and so that is a very big issue.Overall, if you look at the sector, there are a lot of tailwinds which are available for the sector considering the benign oil prices. In addition to that, I think the volume growth which is happening for industries with the increase in outbound tourism as well as inbound tourism so things look pretty good. We would prefer something like an Indigo because InterGlobe is uniquely positioned in terms of better operational performance relative to other players like for example, Jet, which has been losing market share.In India, beyond a point a full service, airline business has not worked till now. It has been more of the discount guys who have worked. So one needs to see whether Air India will change its format to take into consideration the liking and the behaviour of the Indian consumers. I think it is a pretty long shot and might take two three years to finish something like this. In the short term, from a one year perspective, if somebody wants to take an exposure to the sector, something like InterGlobe Aviation would be a preferred pick.In case of Amtek Auto, a large amount of money has got into building capacities while there is little chance of profitability coming out of that. The amount of capex done is pretty high in comparison to the kind of business that can happen.In case of Jaiprakash, the debt on the books is pretty high, the question is that if there is a lot of positive news in terms of selling of assets as well as monetisation on the Noida area? Now we have heard about the new airport coming up near Noida. If those kind of news flow continues, there may be some respite for the people who are stuck up with those stocks.However, considering the amount of debt that is there in the books, one would not venture and ask people to invest in such companies. There are some other companies like GMR with a very high risk high reward perspective have done well on the airport side and there is some amount of improvement which is likely on the power side. Those could be some stocks where one may be able to recover some of the money but I would always expect that only one should look at debt laden companies when you are seeing that a new plant is going to come up and for that reason there is a high amount of debt so those kind of companies are still fine to own.With these companies as the time progresses and more delay happens the interest cost keeps on adding up and it would not be prudent for any retail investor to go and buy these stocks.