Market Performance - Nifty 50 experienced a strong rally of over 1500 points since October 2025, recovering from a pullback in July/August 2025, and reached an all-time high of 26,203 on November 28, 2025 [1] - The Midcap index increased marginally by 1%, while the Smallcap index decreased by 9% during the same period [1] Economic Outlook - India's domestic growth trajectory remains strong, supported by macroeconomic factors, with expectations for a better FY26 compared to FY25 [2] - Key supportive measures include a 50 bps CRR cut, a 100 bps rate cut, improved bank liquidity, and increased government CAPEX spending [2] - The government has implemented GST 2.0 reforms, indicating a renewed focus on economic reforms [2] Geopolitical Challenges - The geopolitical situation is challenging, with ongoing tariffs imposed by the Trump administration on Indian products, which may affect export orders and corporate earnings [3] - The market remains vigilant regarding tariff negotiations and the substance of earnings from Q3FY26 onwards [3] Valuation Insights - The Indian market has underperformed compared to the US and other emerging markets, currently trading at a PE premium of 60% to the EM index, down from a 97% premium in September 2024 [4] - Relative valuation stabilization does not guarantee an immediate market rally, with key parameters to monitor including US trade negotiations and the revival of the earnings growth cycle [4] Investment Strategy - A focus on mid and small caps is emerging, with expectations for gradual recovery led by strong earnings and improving domestic liquidity [5] - The market is expected to consolidate in the near term, with a focus on 'Quality' stocks, monopolies, and domestically-focused sectors [5] - Recent changes in top picks include booking profits in Hero Motocorp and Shriram Finance, while adding Chalet Hotels and Ujjivan Small Finance Bank [6] Recommended Stocks - Recommended stocks include HDFC Bank, Bajaj Finance, Bharti Airtel, Avenue Supermarts, State Bank of India, Max Healthcare, and others [7]

Group 1 - The focus is on leveraging technical and analytical skills to understand the energy sector and global markets [1] - The investment strategy centers around "Growth at a Reasonable Price," emphasizing fundamental analysis and identifying catalysts for medium-term alpha [1] - Options are utilized, primarily on the short side, to generate income and align with the risk-reward profile [1]

Core Viewpoint - KLA Corporation (NASDAQ: KLAC) is currently rated as a Hold due to excellent execution and increasing structural weight in process control, but the stock price has outpaced its fundamentals [1] Company Analysis - KLA Corporation's stock has increased significantly since the last analysis, indicating strong market performance despite concerns about valuation [1] - The company operates in the semiconductor sector, which is characterized by high barriers to entry and oligopolistic market conditions, making it an attractive investment area [1] Analyst Background - The analyst has a background in Mechanical Engineering and has transitioned from the oil and gas sector to focus on technology investments, particularly in semiconductors, robotics, and energy [1] - The analyst emphasizes a growth at a reasonable price investment strategy with a mid- to long-term horizon [1]

Core Viewpoint - The Indian market has underperformed compared to the US and other emerging markets, presenting a long-term equity investment opportunity as it trades at a 49% PE premium to the EM index, which is attractive historically [2][3] Market Performance - Year-to-date, the Indian market has lagged behind the US and other emerging markets, with a notable 49% PE premium to the EM index, down from a peak of 97% in September 2024 [2] - Domestic Institutional Investors (DIIs) have invested $65.2 billion in the Indian market, while Foreign Institutional Investors (FIIs) have sold $17.4 billion, indicating a shift towards domestic investment [2] Investment Strategy - The focus remains on "Growth at a Reasonable Price," emphasizing quality stocks, monopolies, and market leaders in domestic sectors [1][3] - A cautious stance is maintained on export-oriented sectors due to tariff concerns and macroeconomic uncertainties [3] Sector Preferences - The market outlook favors sectors such as BFSI (Banking, Financial Services, and Insurance), Telecom, Consumption, Hospitals, and interest-rate proxies [3] - Positive views are held on retail consumption plays and certain capex-oriented stocks that show growth visibility for FY26 [3] Stock Recommendations - Recent changes in top picks include booking profits in Varun Beverages and adding Mahanagar Gas, reflecting a preference for growth at reasonable prices [4] - Recommended stocks include HDFC Bank, Bajaj Finance, Shriram Finance, Avenue Supermarts, State Bank of India, Lupin, Hero Motocorp, Max Healthcare, Kirloskar Brothers, Kalpataru Projects, APL Apollo Tubes, Mahanagar Gas, Bharti Airtel, Prestige Estates, and Sansera Engineering [5]

Group 1 - The analyst has 5 years of experience managing a technology fund and has a background in Mechanical Engineering [1] - The focus of the analysis is on investment opportunities in the semiconductor sector, robotics, and energy [1] - The investment strategy emphasizes growth at a reasonable price with a mid- to long-term horizon [1] Group 2 - The analyst prefers investing in companies within oligopolistic sectors that have high barriers to entry [1] - There is a tendency to avoid smaller companies due to underestimated perceived risks [1] - The analyst has a beneficial long position in MRVL shares, indicating confidence in the company's prospects [1]

Group 1 - The analyst has 5 years of experience managing a technology fund and has a background in Mechanical Engineering [1] - The focus of the analysis is on investment opportunities in the semiconductor sector, robotics, and energy [1] - The investment strategy emphasizes growth at a reasonable price with a mid- to long-term horizon, targeting companies in oligopolistic sectors with high barriers to entry [1] Group 2 - The analyst has previously worked in the oil and gas sector before transitioning to global equities [1] - The analyst completed CFA Level II in 2024, indicating a commitment to professional development in investment management [1] - The analyst aims to provide small investors with valuable investment ideas through published articles [1]

Group 1 - The analyst has 5 years of experience managing a technology fund and is licensed by the Brazilian Securities Commission as a portfolio manager and investment consultant [1] - The analyst's educational background includes degrees in Mechanical Engineering from the Federal University of Rio de Janeiro and École Centrale de Lyon [1] - The analyst has a strong focus on the semiconductor sector, having studied global equities since 2017, particularly NVIDIA [1] Group 2 - The investment strategy emphasizes investing in companies within oligopolistic sectors that have high barriers to entry, while avoiding smaller companies due to underestimated risks [1] - The analyst is particularly interested in disruptive technologies in hardware-related fields, including semiconductors, robotics, and energy [1] - The investment approach prioritizes growth at a reasonable price with a mid- to long-term investment horizon [1]