Core Insights - Mutual funds invested Rs 38,900 crore into Indian equities in December, indicating strong market activity and portfolio management [1] - Significant stock additions included ICICI Bank and HDFC Bank, while notable sales were observed in Infosys and State Bank of India [1] - The report emphasizes consistent buying trends in certain large-cap stocks along with specific mid and small-cap companies [1]

Equity benchmark indices Sensex and Nifty ended lower on Tuesday after a day's breather, tracking unabated foreign fund outflows and selling in blue-chip stocks amid global tariff-related concerns.Photograph: Shailesh Andrade/ReutersMarket sentiment was also sluggish due to a weak start to the earnings season, according to traders.In a volatile trade, the 30-share BSE Sensex dropped 250.48 points, or 0.30 per cent, to settle at 83,627.69.During the day, it declined 615.38 points, or 0.73 per cent, to 83,262 ...

Market Performance - Equity benchmark indices Sensex and Nifty showed recovery after a significant decline in the previous five trading sessions, driven by bargain hunting in energy, banking, and metal stocks [1] - The BSE Sensex increased by 301.93 points, or 0.36%, closing at 83,878.17, after initially dropping 715.17 points, or 0.85%, to 82,861.07 [3] - The NSE Nifty rose by 106.95 points, or 0.42%, to settle at 25,790.25, following a morning dip of 209.9 points, or 0.81%, to 25,473.40 [4] Sector Performance - Among the gainers in the 30-Sensex firms were Tata Steel, Asian Paints, Trent, State Bank of India, Hindustan Unilever, UltraTech Cement, ICICI Bank, and Bharti Airtel [4] - Conversely, laggards included Infosys, Bajaj Finance, Bharat Electronics, Larsen & Toubro, and HDFC Bank [4] Foreign and Domestic Investment - Foreign institutional investors sold equities worth ₹3,769.31 crore, while domestic institutional investors purchased stocks worth ₹5,595.84 crore [8] - Over the past five trading days, the BSE benchmark fell by 2,185.77 points, or 2.54%, and the Nifty decreased by 645.25 points, or 2.45% [8] Geopolitical Influence - The new US ambassador to India emphasized the importance of India to the United States and mentioned ongoing efforts to solidify a trade deal, which positively influenced market sentiment [5][6] - Investor sentiment improved following favorable remarks regarding the trade deal, contributing to the market's recovery [6][7]

Core Viewpoint - The Q3FY26 earnings season is expected to show significant profit growth, with brokerages divided on whether this indicates a sustained recovery or a temporary improvement [11] Earnings Projections - Emkay Global projects a 14.5% PAT growth driven by festive season demand and GST rate cuts, with BSE500 expected to grow 14% compared to 8.5% for Nifty [1] - JM Financial forecasts a 9.8% YoY PAT growth for Nifty in Q3, up from 8.4% in Q2, with notable growth in telecom (64%), autos (33%), and industrials (31%) [2] - Motilal Oswal anticipates 20 sectors to achieve double-digit growth, with telecom profits expected to increase 2.6x, cement up 66%, real estate up 64%, and capital goods rising 24% [3] Financial Sector Outlook - Axis Securities expects banks to deliver approximately 12.4% YoY credit growth, with management optimism around growth continuing [6][12] - Motilal Oswal forecasts financials, particularly NBFC-Lending, to grow 26% YoY, while private banks and PSBs are expected to contribute moderately [6][12] - Bernstein maintains an "overweight" stance on financials, telecom, and select consumption sectors, while introducing real estate as an overweight [6] Auto Sector Performance - The auto sector is projected to perform strongly, with Motilal Oswal forecasting a 25% YoY growth, benefiting from GST rate cuts and stable commodity prices [7][12] - Axis Securities highlights the auto sector's healthy earnings trajectory supported by favorable regulatory norms [7] Export-Oriented Sectors - Export-oriented sectors are facing challenges, with Axis Securities noting cautious client spending and pricing pressures as key risks for IT services, pharmaceuticals, and chemicals [8][12] - Nuvama anticipates weak profits in export sectors but strong performance in industrials and domestic autos [8][12] - Emkay warns of ongoing trade-deal uncertainties affecting export-oriented sectors, though recovery is expected in H2CY26 driven by improved retail credit flow [8][12] Stock Recommendations - Axis Securities recommends stocks including IDFC First Bank, Bajaj Auto, and UltraTech Cement [8] - JM Financial lists stocks such as Bharti Airtel, ICICI Bank, and Maruti Suzuki [9] - Motilal Oswal suggests stocks like SBI, Titan, and Infosys [10]

Market Overview - The BSE benchmark declined by 2,185.77 points or 2.54% last week, indicating a negative trend in Indian equity markets due to heightened risk aversion from renewed US tariff threats and rising geopolitical tensions [1][3] Company Valuations - Reliance Industries experienced a significant market valuation drop of Rs 1,58,532.91 crore, bringing its total valuation to Rs 19,96,445.69 crore, making it the most valued firm despite the decline [3] - HDFC Bank's valuation decreased by Rs 96,153.61 crore to Rs 14,44,150.26 crore [3] - Bharti Airtel's market valuation fell by Rs 45,274.72 crore to Rs 11,55,987.81 crore [2][3] - Bajaj Finance's valuation plunged by Rs 18,729.68 crore to Rs 5,97,700.75 crore [2][3] - Larsen & Toubro's market capitalization dropped by Rs 18,728.53 crore to Rs 5,53,912.03 crore, while TCS declined by Rs 15,232.14 crore to Rs 11,60,682.48 crore [3] - Infosys saw a decrease in market capitalization by Rs 10,760.59 crore to Rs 6,70,875 crore [3] Gainers in the Market - ICICI Bank's valuation increased by Rs 34,901.81 crore to Rs 10,03,674.95 crore, marking it as a notable gainer [3] - Hindustan Unilever's market capitalization rose by Rs 6,097.19 crore to Rs 5,57,734.23 crore [3] - State Bank of India's valuation edged higher by Rs 599.99 crore to Rs 9,23,061.76 crore [3] Overall Market Impact - The combined market valuation of seven of the top-10 most valued firms eroded by Rs 3,63,412.18 crore last week, with Reliance Industries being the largest contributor to this decline [3]

Core Insights - Indian equity markets experienced a significant decline, with the benchmark BSE Sensex falling by 2,185.77 points, or 2.54%, reflecting weak investor sentiment and heightened risk aversion due to renewed US tariff threats and rising geopolitical tensions [4][6] Company Performance - Reliance Industries saw its market capitalisation decrease by Rs 1,58,532.91 crore, bringing its total to Rs 19,96,445.69 crore, making it the largest loser in absolute terms [4][6] - HDFC Bank's valuation dropped by Rs 96,153.61 crore to Rs 14,44,150.26 crore [4][6] - Bharti Airtel's market capitalisation fell by Rs 45,274.72 crore to Rs 11,55,987.81 crore [4][6] - Bajaj Finance lost Rs 18,729.68 crore, closing at Rs 5,97,700.75 crore [4][6] - Larsen & Toubro's market capitalisation decreased by Rs 18,728.53 crore to Rs 5,53,912.03 crore [4][6] - Tata Consultancy Services (TCS) saw a decline of Rs 15,232.14 crore, resulting in a valuation of Rs 11,60,682.48 crore [4][6] - Infosys' market capitalisation edged lower by Rs 10,760.59 crore to Rs 6,70,875 crore [6] Positive Performers - ICICI Bank's valuation increased by Rs 34,901.81 crore to Rs 10,03,674.95 crore [5][6] - Hindustan Unilever added Rs 6,097.19 crore, reaching a market capitalisation of Rs 5,57,734.23 crore [5][6] - State Bank of India's market capitalisation rose by Rs 599.99 crore to Rs 9,23,061.76 crore [5][6] Market Overview - The combined market capitalisation of seven of India's ten most valued companies fell by Rs 3,63,412.18 crore last week [6] - Despite the overall losses, Reliance Industries remained the most valued company in India, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and Larsen & Toubro [5][6]

Market Valuation Changes - The combined market valuation of seven of the top-10 most valued firms decreased by ₹3,63,412.18 crore last week, with Reliance Industries being the largest contributor to this decline [1] - The BSE benchmark index fell by 2,185.77 points, representing a decline of 2.54 percent [1] Company-Specific Valuation Changes - Reliance Industries' market valuation decreased by ₹1,58,532.91 crore, bringing its total to ₹19,96,445.69 crore [3] - HDFC Bank's valuation fell by ₹96,153.61 crore to ₹14,44,150.26 crore [3] - Bharti Airtel's market valuation dropped by ₹45,274.72 crore to ₹11,55,987.81 crore [3] - Bajaj Finance's valuation declined by ₹18,729.68 crore to ₹5,97,700.75 crore [3] - Larsen & Toubro's market capitalization decreased by ₹18,728.53 crore to ₹5,53,912.03 crore [3] - Tata Consultancy Services (TCS) saw a decline of ₹15,232.14 crore, bringing its valuation to ₹11,60,682.48 crore [3] - Infosys' market capitalization edged lower by ₹10,760.59 crore to ₹6,70,875 crore [4] Gainers in Market Valuation - ICICI Bank's market valuation increased by ₹34,901.81 crore to ₹10,03,674.95 crore [4] - Hindustan Unilever's valuation rose by ₹6,097.19 crore to ₹5,57,734.23 crore [4] - State Bank of India's market capitalization increased by ₹599.99 crore to ₹9,23,061.76 crore [4] Overall Market Sentiment - The Indian equity markets ended the week negatively, influenced by increased risk aversion due to renewed US tariff threats and rising geopolitical tensions [2]

Market Performance - Benchmark indices Sensex and Nifty experienced selling pressure for the fifth consecutive session, declining nearly 1 percent due to investor caution over potential US tariff hikes and ongoing geopolitical concerns [1][7] - The BSE Sensex fell by 604.72 points, or 0.72 percent, settling at 83,576.24, while the NSE Nifty dropped 193.55 points, or 0.75 percent, to 25,683.30 [3][4] Foreign and Domestic Investment - Foreign institutional investors sold equities worth Rs 3,367.12 crore, while domestic institutional investors purchased stocks worth Rs 3,701.17 crore on Thursday [6] - The continuous outflow of foreign capital has negatively impacted market sentiment [3] Sector Performance - Among the 30 Sensex firms, NTPC, ICICI Bank, Adani Ports, Bharti Airtel, Sun Pharma, and Bajaj Finance were the biggest laggards, while Asian Paints, HCL Tech, Bharat Electronics, and Reliance Industries showed gains [4] Global Market Context - Asian markets, including South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng, ended higher, contrasting with the Indian market's performance [7] - European markets were trading positively, while US markets closed mixed [8]

Summary of Key Points from the Investor Presentation Industry Overview - The Asia Pacific region is undergoing significant changes in growth and corporate strategies, as well as reforms in capital markets to enhance competitiveness in emerging technologies and multipolar supply chains [1][4]. Core Views and Recommendations - **Market Positioning**: The company recommends maintaining tight market-risk positions relative to benchmarks, with a slight preference for Japan over emerging markets (EM) in 2026 [7]. - **Country Allocations**: - Small Overweights (OWs) are suggested for India, Brazil, UAE, and Singapore. - Underweights (UWs) are recommended for Saudi Arabia, Indonesia, and Taiwan [7]. - **China Outlook**: The company holds a moderately constructive view on China with an Equal Weight (EW) recommendation, but does not anticipate significant reflation until 2027 [7]. Thematic Insights - The top thematic focus areas identified include: - AI Path in China - Diabesity Ecosystem - AI & Healthcare [7]. Earnings and Valuations - **Earnings Projections**: - The base-case earnings for the TOPIX index are projected to be ¥185 (+9%) for F3/25, ¥198 (+7%) for F3/26, and ¥225 (+14%) for F3/27 [8][12]. - The consensus EPS for the same periods is ¥188 (+10%), ¥201 (+7%), and ¥223 (+11%) [12]. - **Valuation Targets**: - The TOPIX index is currently at 3,538 with a target of 3,600 for December 2026, reflecting a 2% increase [8]. - The MSCI EM index is at 1,467 with a target of 1,400, indicating a -5% outlook [8]. Market Performance Rankings - The performance rankings for various countries from 2016 to 2026 show Japan consistently leading, followed by Hong Kong and India, with significant fluctuations in other markets like Brazil and South Africa [9]. Forward P/E Ratios - The forecasted 12-month forward P/E ratios are: - Japan: 15.0x - Emerging Markets: 13.0x - China: 12.7x [17]. Additional Insights - The company emphasizes the importance of considering potential conflicts of interest in its research, as it engages in business with covered companies [5]. - The earnings estimate revisions for various markets indicate a mixed outlook, with Japan showing positive growth while other regions like India and Australia face downward revisions [19]. This summary encapsulates the critical insights and recommendations from the investor presentation, highlighting the strategic focus on Asia Pacific markets and the anticipated trends in earnings and valuations.

Market Overview - Benchmark indices Sensex and Nifty experienced a decline in early trade due to foreign fund outflows and concerns over potential US tariff hikes [1][3] - The BSE Sensex fell by 78.84 points to 84,102.12, while the NSE Nifty decreased by 21.50 points to 25,850.85 [1] - The previous trading day saw the Sensex drop by 780.18 points (0.92%) to 84,180.96 and the Nifty tumble by 263.90 points (1.01%) to 25,876.85 [2] Institutional Activity - Foreign institutional investors sold equities worth ₹3,367.12 crore, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹3,701.17 crore [3] - The Indian equity market is characterized by a cautious sentiment following the significant sell-off in the previous session [3] Sentiment and External Factors - Concerns regarding potential US tariff actions related to India's Russian oil imports have contributed to fragile market sentiment [4] - The lack of progress in US-India trade discussions is causing caution among institutional investors, particularly foreign ones [4] - In contrast, Asian markets showed mixed performance, with South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite indices trading higher, while Hong Kong's Hang Seng index declined [4] Commodity Prices - Brent crude oil prices increased by 0.53% to $62.32 per barrel [5]