Inflation remains under control, while Flls have turned net buyers again in July 2026 after a prolonged selling phase and Dlls continue to provide strong support. If earnings growth and capital inflows continue, the current correction could lay the foundation for the next leg of the bull market.
India's mutual fund industry still has enormous growth potential. Total mutual fund AUM stands at Rs.82.22 lakh crore (~US$980 billion), with only around 4% of the population investing and mutual fund AUM equivalent to 25.4% of GDP. In comparison, the US mutual fund industry manages US$33.15 trillion, with 38% of the population investing and AUM equal to 137% of GDP, indicating significant long-term growth potential for India's mutual fund industry.
As per market grapevine, several blue-chip companies including Reliance, HDFC Bank, TCS, HUL, Infosys, ITC, ONGC, Nestlé and many others have delivered little or no returns over extended periods despite strong underlying businesses. The key takeaway is that investing in a good company alone is not enough. Proper entry and exit timing, along with regular technical and fundamental reviews, are equally important for generating superior returns.
Indian Stock Market: Leverage is the New Squid Game. Key takeaway: Nithin Kamath (Zerodha) and Andy Mukherjee (Bloomberg) have raised concerns over the rapid rise in leverage. India's MTF book has surged nearly 6x since 2023, with over 50% exposure in Non-F&O stocks, unlike Korea where leverage was largely concentrated in liquid large-cap stocks. India's MTF book has grown sharply: Mar 2023: Rs.25,000 crore, Mar 2025: Rs.68,000 crore, Jun 2025: Rs.85,000 crore, Aug 2025: Rs.96,000 crore, Oct 2025: Rs.1 lakh cror, Dec 2025: Rs.1.16 lakh crore, Jan 2026: Rs.1.16 lakh crore, Feb 2026: Rs.1.15 lakh crore (first monthly decline in one year), Mar 2026: Rs.1.06 lakh crore (Iran conflict, crude spike and Fll selling), Apr 2026: Rs.1.16 lakh crore, May 2026: Rs.1.27 lakh crore, Jun 2026: Rs.1.33 lakh crore, Jul 2026: Rs.1.44 lakh crore. Korea's market crash is a warning. Following massive leveraged losses, authorities introduced suicide prevention hotlines, Al bridge surveillance and enhanced psychiatric support, highlighting the devastating impact of excessive leverage. For retail investors, the lesson is simple: Avoid leverage, avoid margin trading and avoid excessive borrowing for stock investments. SEBI's June 2026 consultation paper highlighted that the MTF book is growing at nearly 50% YoY, reflecting rising leverage in the Indian market. Although India's MTF book is only 0.3% of total market capitalization versus 0.8% in South Korea, the quality of leverage is a bigger concern as 51% of MTF exposure is in Non-F&O small and mid-cap stocks, where liquidity is limited. Unlike Korea's Al-led bull market, India's leverage has built up during a largely sideways-to-weak market over the last two years. If leverage continues rising without a corresponding increase in market capitalization, it could become a significant risk for retail investors.
TGV SRAAC is expected to report strong Q1 results following robust performances by Gujarat Alkali and Lords Chloro. Promoters have purchased 4.77 lakh shares over the last two quarters, reflecting confidence in the company's prospects. The stock trades at a P/E of just 8, offers a 10% dividend yield, and appears attractive compared with its all-time high of Rs.182.
HFCL is emerging as a key beneficiary of the rising demand for fibre-optic drones, which are expected to require 70-100 million fibre kilo-metres of A2 fibre. As countries increasingly shift from radio-controlled drones to optical drones to prevent signal jamming, HFCL remains a stock to keep on the radar.
Paytm has launched the 'Split Bills' feature, enabling users to split and settle shared expenses directly through the app. The addition strengthens Paytm's digital payments ecosystem by integrating expense management with UPI-based settlements, enhancing user engagement.
Talbros Engineering has acquired a 40,000 sq. m. industrial premises at Pithampur, Madhya Pradesh, for Rs.25 crore to support future expansion and new projects. The development strengthens its long-term growth outlook, and the stock may surpass its 52-week high of Rs.766.
Rajesh Power has secured a Rs.70.05 crore order from Rajasthan Vidyut Prasaran Nigam, taking fresh order inflows over the last 30 days to more than Rs.1,003 crore. The company reported FY26 PAT of Rs.143 crore, EPS of Rs.80, ROCE of 48.6% and Q1 FY27 revenue of Rs.436.62 crore, while its unexecuted order book has grown to Rs.4,745 crore.. Supported by strong fundamentals, attractive valuations and expansion into Battery Energy Storage Systems (BESS), the stock looks attractive at the current market price compared with its 52-week high of Rs.1,639.
BMW Industries has reserves of Rs.781 crore against equity of Rs.22.51 crore, with promoters holding 74.36%. It reported 87% higher Q4FY26 PAT of Rs.33 crore and FY26 PAT of Rs.80.77 crore, while announcing a 43% dividend. Its Bokaro greenfield steel project is on track for commissioning in Q1FY27. The stock looks attractive at Rs.48 versus its lifetime high of Rs.86.
IRB Infrastructure reported 51.2% higher Q1FY27 PAT of Rs.306 crore. It expects 5-6% traffic growth, 22-25% toll revenue growth in FY27 and stronger ordering activity in H2FY27. Keep the stock on the radar.
Morepen Laboratories has reserves of Rs.1,137 crore against equity of Rs.110 crore and exports APIs to over 90 countries. Its API facility received USFDA clearance with NIL Form 483 and it secured a Rs.825 crore CDMO contract, with another Rs.225 crore expected in Q2FY27. The stock looks attractive at Rs.57 versus its lifetime high of Rs.222.
Talbros Engineering posted 80% higher Q4FY26 EPS of Rs.19 and FY26 EPS of Rs.57.4, while increasing its dividend to 30%. The company has expanded capacity through new facilities in Faridabad and Madhya Pradesh. Trading at just 12x PE against peers at 30x, the stock offers strong long-term potential.
TGV Sraac has reserves of Rs.1,190 crore against equity of Rs.28 crore and trades at just 0.85x book value. Promoters increased their stake to 64.26%. FY26 PAT rose 43% to Rs.132 crore with a 10% dividend. Ongoing Rs.220 crore capex and solar capacity expansion are expected to support FY27 earnings. The stock looks attractive at Rs.103 versus its all-time high of Rs.182.
Sathlokhar Synergys E&C Global reported a strong Q1FY27 performance with total income rising 67.8% YoY to Rs.206.19 crore, EBITDA surging 131.4% to Rs.31.35 crore, EBITDA margin expanding to 15.2%, and PAT jumping 132.6% to Rs.21.41 crore.
Cupid has strengthened its strategic partnership with GII Healthcare Investment through an additional USD 5 million investment, funded entirely through internal accruals.
Premium Plast has acquired an under-construction manufacturing facility in Bagroda Industrial Area, Bhopal, for Rs.99 lakh to support its future expansion plans.
Liotech Industries reported FY26 total income of Rs.70.50 crore (+73.3% YoY), EBITDA of Rs.10.40 crore (+58.2% YoY), and net profit of Rs.6.32 crore (+53.9% YoY). The company also secured a Rs.6.46 crore domestic order for architectural hardware products.
Patel Retail has expanded its retail footprint by opening its 53rd store at Uran, Raigad, further strengthening its presence across the Mumbai Metropolitan Region.
Neetu Yoshi secured Indian Railways orders worth Rs.20.11 crore, including a Rs.17.12 crore contract for axle box housings and related components, along with a Rs.2.99 crore order for centre pivot tops.
Vivid Electromech has strengthened its leadership team with the appointment of a new CFO and Company Secretary, bringing extensive expertise in strategic finance, fundraising, investor relations and corporate governance.
Emerald Finance has partnered with Vausm Technologies to launch its new Early Wage Access (EWA) programme in Punjab, expanding its fintech offerings.
