Smallcap stocks are experiencing a resurgence, mirroring the gains seen in 2024, with the BSE Smallcap Index significantly outperforming the Nifty. While economic recovery and liquidity inflows fuel this rally, experts caution about stretched valuations and the need for selective stock picking based on strong fundamentals.
The Indian rupee is underperforming among emerging Asian currencies due to the Reserve Bank of India's (RBI) strategy to bolster its foreign-exchange reserves. The RBI's dollar purchases to cover future obligations and replenish reserves are expected to exert downward pressure on the rupee, potentially leading to a depreciation to 86.50-87.50 per dollar by year-end.
Government and household spending are currently fueling infrastructure growth, while private capital expenditure remains sluggish due to low capacity utilization and policy uncertainty. Infrastructure providers linked to government projects in power, defence, and railways are expected to thrive. The focus should be on import substitution to boost domestic production, as large-scale private investment is still pending.
Nykaa's parent company, FSN E-Commerce Ventures, witnessed a significant surge in its Q4FY25 consolidated profit after tax, jumping 193% YoY to 20 crore. Revenue from operations also increased by 24% YoY to 2,267 crore.
Asian shares and US stock-index futures declined as trade tensions escalated, prompting investors to seek safe-haven assets like gold. President Trump's threat to double tariffs on steel and aluminum imports heightened concerns about a potential economic recession. Market participants are also monitoring a sweeping tax bill that threatens to burgeon US deficit.
Sun Pharma anticipates revenue growth for fiscal year 26, building on an 8% increase in fiscal year 25. However, increased spending on marketing specialty products may impact profitability. Net profit declined in the March quarter due to higher taxes. The company plans to launch new drugs like Leqselvi and Unloxcyt.
Banks' mutual fund investments jumped 91% year on year to Rs 1,19,863 crore as on March 21, 2025, from Rs 62,499 crore on March 22, 2024, data from the Reserve Bank of India (RBI) bulletin showed. Banks MF investments had grown 28% in the previous year.
Several stocks, particularly in the BFSI sector, are showing bullish signals with increased open interest in the June series. PNB, Bank of India, Manappuram Finance, SBI Cards, and SBI are poised for potential breakouts. BSE is also exhibiting strong upside potential due to regulatory changes, while Inox Wind sees continued bullish momentum with high rollover rates.
Corporate India's net profit surged in the March quarter, driven by reduced non-operating costs, while revenue growth remained moderate. Excluding banking and finance, profit growth improved significantly, with metals and pharmaceuticals outperforming. Analysts anticipate stronger earnings in FY26, fueled by tax incentives and lower interest rates, despite global uncertainties.
