UTI AMC's Lakshmanan: Private Banks Deserve Higher Valuations Than PSUs

• Private banks may deserve higher valuations due to faster tech spending and better profitability, expected to gain market share long-term.
• PSU banks show improved asset quality and comparable RoEs, with potential for re-rating in well-run institutions.
• India lacks sufficient listed AI companies; Indian IT sector is attractively valued post-correction and could find opportunities in AI implementation for clients.
• The market outlook for 2026 is positive, driven by strong Indian macros, accelerating earnings growth, and demographic advantages.
• At least one more RBI rate cut is possible in 2026; inflation is expected to bottom in FY26 and gradually rise in H1 FY27.

Why It Matters: Expert analysis guides investment decisions across Indian market sectors.