According to reports from The Economic Times, Chakri Lokapriya, CIO-Equities at LGT Wealth, views the current market volatility as a window of opportunity rather than a warning sign. Speaking to ET Now, he emphasized that financials had corrected significantly and the valuations are attractive, making it a space for strategic accumulation. The investment approach focuses on separating market noise from genuine opportunities, with particular emphasis on timing rather than risk assessment. Latest market developments show that Wipro announced it will consider a share buyback alongside its fourth-quarter results on April 16, marking the company's first buyback in three years. This move follows a significant drop in its stock price and comes amid investor concerns about IT firms' cash return strategies versus AI investments.
As reported by The Economic Times, Lokapriya remains selective but constructive within the IT sector, highlighting improving deal pipelines and resilient margins as key positives despite ongoing AI-led disruption concerns. He noted that TCS results were fairly good with a strong order book of about $12 billion and margins holding up, while AI revenue now represents 7-7.5% of total revenue. The IT sector's valuations have corrected significantly, creating attractive entry points for large-cap companies like TCS and Wipro, which is conducting a buyback. Recent market data shows that Wipro share price rallied 3% after the IT firm announced it would consider a share buyback, with the stock jumping 18.1% following the announcement. Management expects some margin pressure but remains confident in maintaining operating margins.
According to The Economic Times report, Lokapriya is particularly optimistic about non-banking financial companies, especially those linked to the commercial vehicle cycle recovery. He highlighted that NBFCs like Shriram, Chola, and Poonawalla are well-positioned for the cycle pickup when economic activity stabilizes. The sector benefits from improving fundamentals, with Shriram's upgrades reducing cost of capital and adequate tier I capitalization providing room for increased loan growth rates, while valuations remain attractive at 1.7-1.8 levels. Market experts are increasingly bullish on banking stocks, with HDFC Bank showing strong fundamentals and improving operational efficiencies, making it more attractive from a risk-reward perspective than traditional banking peers.
As reported by The Economic Times, the real estate sector has seen meaningful corrections due to global uncertainty and IT job concerns, particularly impacting markets like Bangalore and Pune. However, this creates selective opportunities, with companies like Lodha expanding into data centres and Sobha correcting significantly. On metals, Lokapriya believes the worst of valuation correction may be behind, with steel and aluminium players positioned to benefit from supply disruptions and resumption of demand, including rebuilding activities due to war impacts. The metals sector is showing particular strength with Vedanta gaining 15.9% and Tata Steel up 3.1% in recent trading sessions, reflecting improved investor sentiment toward the sector.
According to The Economic Times report, Lokapriya's strategy emphasizes selective buying in financials, IT, metals, and real estate to offer meaningful upside over the medium term. He remains positive on PSU banks like State Bank of India and Union Bank of India, citing strong credit growth and reasonable valuations. The broader message suggests that periods of uncertainty often present the best entry points, with the current market offering opportunities for investors willing to look beyond near-term volatility and focus on timing rather than risk assessment. Market experts are advising a disciplined approach, with Dharmesh Kant suggesting a scenario-based approach for the Nifty and emphasizing that focus on quality stocks and staggered buying is key for navigating the uncertain market ahead.
