Indian investors can breathe a little easier. Market veteran Manish Sonthalia says the toughest part of 2025 may be over and the next few years could bring healthier earnings and a steadier rupee.
Sonthalia notes that the sharp fall of the rupee to around 91 per dollar has been a major drag. He believes that level is “overdone” and expects the currency to stop weakening, which should help companies’ bottom lines.
For the current fiscal year, he expects modest growth – about 9% revenue growth and slightly lower profit growth. But looking ahead to FY27, he sees a clearer upside, with earnings potentially rising 13‑14% thanks to government support and a more stable macro environment.
Even if earnings grow at a conservative 11‑12% pace, the Nifty 50 is trading at roughly 21‑22 times earnings. That gives a price‑to‑earnings‑to‑growth (PEG) ratio under 2, which Sonthalia says does not signal an overvalued market.
The small‑cap segment often gets labeled as frothy, but Sonthalia points out that its valuations are close to three‑ and five‑year median levels. Earnings in this space could still grow around 14‑15%.
Volatility remains low, indicating that neither bulls nor bears are in a rush. Investors are watching for possible trade‑deal news in the coming months, which could provide the next market catalyst.
Overall, the mix of improving macro conditions, reasonable valuations, and potential earnings growth tips the scale slightly toward the positive side. Still, key risks remain, and investors should stay alert to new developments.
Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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Join TelegramYatayat Corporation, a logistics firm from Gujarat, has officially filed its draft prospectus with SEBI, signaling the start of its initial public offering. What the IPO includes Fresh issue of up to 77 lakh new equity shares. Offer for sale of up to 56 lakh shares by promoter Meena Praveen Aggarwal. Total shares on offer could reach up to 1.33 crore. Where the shares will trade The shares are planned to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) once the IPO is completed. Use of the money raised Money from the new shares is expected to be used to pay down existing loans, support working‑capital needs and fund general corporate activities. Company snapshot Yatayat focuses on full‑truck‑load (FTL) transport across major Indian freight corridors. It operates an asset‑light model, owning a small fleet while partnering with many independent truck owners. The firm also offers cross‑border services to Bangladesh and handles part‑load, express, over‑dimensional and multimodal freight through its subsidiary. Recent financial performance Revenue grew to ₹448.13 cr in FY2025, up from ₹348.34 cr in FY2024. Profit after tax rose to ₹30 cr in FY2025, compared with ₹14.95 cr the previous year. Profit margin improved to 6.70% in FY2025. For the quarter ending June 30 2025, revenue was ₹119.68 cr and profit after tax ₹7.83 cr. How to apply Unistone Capital is handling the book‑running for the issue. Investors can apply for the fresh issue or buy the promoter’s shares during the offer period, following standard IPO procedures on the stock exchanges. Key takeaway The IPO gives retail investors a chance to own a piece of a growing logistics player that is expanding its network across India and into Bangladesh, while the company gains capital to reduce debt and fuel further growth. Remember, this is just an overview, not a recommendation. Do your own research and consider your risk tolerance before investing.
SEBI has announced a tweak to the Basic Services Demat Account (BSDA) rules that will make it easier for small investors to qualify and reduce paperwork for depository participants. What the change means Effective from March 31, 2026, the regulator will no longer count Zero Coupon Zero Principal (ZCZP) bonds or delisted securities when calculating the value of a portfolio for BSDA eligibility. In simple terms, these assets will be ignored in the eligibility test. Why it matters for investors Lower compliance burden: Depository participants (DPs) won’t need to include hard‑to‑price securities in their calculations. Clearer eligibility: Investors with holdings under ₹10 lakh can more easily meet the BSDA threshold. Automatic conversion: If you qualify, the DP must convert your regular demat account to a BSDA unless you actively opt out. New quarterly review rule DPs will now reassess every demat account’s BSDA eligibility every quarter, rather than on an ad‑hoc basis. For illiquid securities, the last available closing price will be used, and if market prices are missing, the most recent traded price or NAV will apply. How the valuation works Listed securities: valued at daily closing price or NAV. Unlisted securities (except mutual fund units): face value can be taken. Illiquid securities: use the last closing price. Suspended, delisted, and ZCZP bonds: not considered for BSDA eligibility. Background on BSDA The BSDA was introduced in 2012 to give investors with small portfolios (under ₹10 lakh) a cheaper, simpler demat account option. By removing certain low‑liquidity assets from the eligibility calculation, SEBI aims to further reduce the cost and complexity for these investors. Remember, this is perspective, not prediction. Do your own research and consider your personal financial situation before making any decisions.
Investors often treat all money in the market the same, but fresh cash entering the market behaves differently from money that’s already invested. Understanding this split can help you navigate changing market moods. Why the distinction matters When new investors pour money into stocks, they usually chase recent winners or hot sectors. Existing investors, however, tend to hold on to their positions and react more cautiously. Mixing the two can mask the true direction of the market. How the macro mood influences fresh vs existing money Broad economic sentiment – such as interest‑rate moves, earnings outlooks, or geopolitical events – can shift the market’s tone. In a bullish mood, fresh money often fuels rapid price gains, while in a bearish mood, it may flow into safer assets, leaving existing stock holdings to bear the downside. Practical steps for retail investors Watch inflow data: Look at fund inflow reports to see if fresh money is entering equities or staying in cash. Separate your portfolio: Treat new contributions as a distinct “fresh‑money” bucket and decide whether to invest them in the same stocks as your existing holdings. Align with market mood: In a positive macro environment, consider allocating fresh money to growth stocks. In a negative environment, shift toward defensive sectors or keep cash on the sidelines. Bottom line Distinguishing fresh money from existing funds gives you a clearer picture of market dynamics. By recognizing how macro sentiment affects each, you can make smarter allocation choices and protect your portfolio against sudden swings. Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before acting.