Recovery in earnings growth may be seen in the second half of this financial year. Chakri Popular, CIO (Equity) of LGT Wealth India has expressed this hope. He believes that in the second half of this financial year, profit growth can be 5-8 percent on year-on-year basis. After that profit growth will pick up pace. He said that if a trade deal is made between US President Donald Trump and Prime Minister Narendra Modi and 25 percent tariff is removed, it will be a big victory. While talking to Moneycontrol, he told many important things about the stock market and investment.
Due to reduction in GST and reduction in taxes, more money is being saved in the pocket.
He said that the picture of the economy looks good due to tax relief, reduction in GST and good monsoon rains. Consumption, financial and manufacturing will play a major role in earnings recovery. He said, “Consumption is going to be a big story. Due to reduction in GST, prices of goods have come down by 10-15 per cent. Due to reduction in income tax in February, people are saving more money. People can now spend more. Per capita consumption is going to be $3,250. This will increase revenue growth.”
Focus remains on demand in Q2 FY26
Popular said the focus is on demand in the second half of FY26. The sentiment has improved due to festivals, weddings and reduction in taxes. Due to this, despite the higher prices, gold sales have increased. The growth of non-jewellery category is in double digits. This shows that the demand is good. Structural change is coming in the economy. The share of consumption in GDP reached 60 percent in FY25. In FY20 it was 55 percent. People have more money in their hands to spend. Measures like reduction in GST and relief in income tax are responsible for this.
Savings money is going into mutual funds and shares.
He said that due to the boom in consumption, the savings money is going into mutual funds, insurance and equity. Asset under management (AUM) of mutual funds reached Rs 77 lakh crore in July 2025. In financials, the focus remains on government and private banks. Large asset management companies are also looking good. Brokers are facing difficulties in terms of regulations. TCS is going to build a data center of 1 GW. This shows the strength of India’s digital infrastructure.