Chakri Lokapriya from LGT Wealth shares insights. He discusses what matters for Indian stock investors. He covers markets from financials to real estate. His views span sector performance.
Lokapriya anticipates earnings growth. He expects a 6% to 8% increase. This is for the 2025-26 financial year. Current market trading is high. Prices are 19–20 times FY27 earnings. This shows elevated valuations. Stronger earnings growth is expected. FY26 should see 6–8% growth. FY27 could reach 14–16% growth. This depends on US tariffs. The 25% additional tariff must be removed.
Sector Updates:
Communication Services: Telecom firms performed well. ARPU growth and broadband helped. Mobile subscriber growth slowed. Industry finances are still a risk. This affects capital investment ability. Media companies met expectations. Cinema profits should improve soon. State rules on ticket prices are a risk. They might limit premium pricing.
Consumer Discretionary: Car companies saw gains. Better pricing and premium products helped. Lower sales volumes hurt profits. Management sees good prospects for vehicles. This includes two-wheelers and tractors. Commercial vehicles may stay slow.
Government help could boost demand. Lower GST rates might help. Retail demand was weak. This was due to seasons and early rains. Clothes and jewelry sellers stayed profitable. Value stores and restaurants faced pressure. Footwear and electronics sales were slow. The upcoming holiday season may bring a short boost.
Consumer Staples: Food companies saw mild urban growth. Rural demand was stronger. Sector sales grew about 6% yearly. Profits fell because of material costs. This squeezed profit margins. Food and personal care saw more earnings cuts. Profit pressure may last into early FY26. It should ease later, boosting earnings.
Financials: Banks showed steady earnings. State-run banks did better than private ones. Loan growth was moderate overall.