Chakri Lokapriya, CIO-Equities at LGT Wealth, believes the recent moves by the Reserve Bank of India (RBI) to cut the repo rate and the cash reserve ratio (CRR) will boost domestic markets. The central bank has slashed the repo rate by 50 basis points (bps) to 5.50 per cent and reduced the CRR by 100 bps in a bid to spur economic growth.
In an interaction with Business Today, Lokapriya also shared his views on select stocks. On Suzlon Energy, the market noted that the company is well-positioned to capitalise on the renewable energy push. He highlighted Suzlon’s strong performance in the fourth quarter of FY25 and said the outlook for the company remains positive, even amid the recent promoter stake sale.
Speaking on Asian Paints, the market veteran expressed caution. He pointed out that the paint industry is seeing heightened competition from new entrants, leading to shrinking market share for existing players like Asian Paints. “The sector is shifting towards lower margins and profitability. Valuations are unlikely to return to their earlier highs. I would avoid this sector,” he added.
In response to a query on Reliance Industries Ltd (RIL), Lokapriya stayed upbeat. He noted that while the stock has not done much for quite some time. “With attractive valuations in place, Reliance is well-poised to gain when broader market momentum picks up, given that it remains an undervalued stock,” Lokapriya stated.
He also expects NTPC Green Energy Ltd and Adani Green Energy Ltd to perform as there’s still a lot of expansion ahead of them.
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