Oil, Inflation, and War: Chakri Lokapriya’s roadmap for selective investing
Why it matters: Rising commodity costs and currency weakness could curb earnings, reshaping India’s equity outlook.
- Chakri Lokapriya (CIO‑Equities, LGT Wealth) urges incremental buying, not full‑on exposure, amid oil hovering around $100.
- Industrial & auto firms such as L&T have expensive valuations despite order books from the Middle East, making price cuts less compelling.
- Petrochemical‑linked sectors (urea, tyres, paints, pipe) see input costs jump 50‑60% in a month, threatening margins in the upcoming quarter.
- Banking & consumer staples feel indirect pressure from slower economic activity and higher input costs, challenging their traditional low‑risk appeal.
CIO Chakri Lokapriya warns investors to stay cautious as oil spikes, a weak rupee and higher freight costs erode corporate margins, even though some stocks look cheap after recent corrections.
