• Notification Date: 10-03-2025
• Notification No: N/A

Market Rebound in Sight? Bullish Prediction as RBI Rate Cuts and GST Reforms Fuel Confidence

Market valuations reflect that the bottom is around the corner, with strong indications of a rebound led by expected RBI rate reductions and potential GST simplification. According to Chakri Lokapriya, CIO-Equities, LGT Wealth, the Nifty trades at approximately 18.8 times forward earnings, close to the COVID lows of 18.5 times. This reflects the fact that the market is in much better economic health compared to the pandemic.

GST cuts will be aimed at low-cost goods, with the middle class consumers being the principal gainers. Luxury items and high-end cars above $40,000 will not benefit from any tax relief. Lokapriya believes that this will boost demand for common commodities and raise consumer spending.

The defense sector would also gain speed, with more European defense budgets going to bigger Indian players like Hindustan Aeronautics and Bharat Electronics. Specialty chemicals are also set for a resurgence should new US tariffs hit Chinese peers, creating room for Indian players like PI Industries and UPL.

Power demand will rise as economic activity picks up, and power stocks like Power Finance and REC are good investment options.

With market recovery on the cards, tremendous opportunities await — are you ready to ride the wave?