&w=3840&q=100)
Rich or resilient? Market valuation debate heats up amid Q1FY26 results
Sai Aravindh Mumbai
Listen to This Article
The long-drawn debate on India's stock valuation is back in focus as the market has recouped nearly 75 per cent of its losses. While benchmark indices hover near long-term averages, some analysts argue that current 'rich' valuations claims overlook broader macroeconomic signals.
Going ahead, besides macro-economic strength, corporate earnings growth, analysts suggest, holds the key for the markets to sustain at the current levels and even move higher.
Analysts at Anand Rathi recently downplayed concerns around rich market valuations, citing two key factors. First, this does not take into account the strong macroeconomic and robust corporate earnings growth.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
9 minutes ago
- Economic Times
SEBI proposes measures to expand resident Indian participation in FPIs
Key proposals Live Events Retail Schemes in IFSCs: The proposal suggests enabling retail schemes based in International Financial Services Centres (IFSCs) in India, with resident Indian non-individuals acting as sponsors or managers, to register as FPIs. These schemes would be aligned with existing investment regulations for better clarity and accessibility. Alignment of Contribution Limits: SEBI proposes to align the contribution limits for resident Indian non-individuals with the IFSCA (Fund Management) Regulations, 2025. This move would harmonize the contribution thresholds for various types of funds operating within IFSCs, including venture capital, restricted schemes, and retail schemes. Indian Mutual Funds as Constituents of FPIs: The proposal seeks to allow Indian mutual funds to become constituents of FPIs, enabling them to invest in overseas mutual funds or unit trusts with exposure to Indian securities. This is intended to streamline the investment process and enhance the transparency of such investments. Background The consultation process: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In an attempt to facilitate greater participation from resident Indians in the foreign portfolio investment landscape, the Securities and Exchange Board of India ( SEBI ) has released a consultation paper outlining several key proposals aimed at increasing the involvement of Indian investors in FPIs These proposals are designed to create a more inclusive investment environment, particularly for Indian non-individuals and mutual funds, allowing them to play a more significant role in international investment proposed measures focus on expanding the scope of Foreign Portfolio Investment (FPI) participation by resident Indians through a series of regulatory changes. SEBI's move is expected to pave the way for a broader range of investment options and offer Indian investors increased opportunities to diversify their portfolios consultation paper invites public feedback on these suggestions, which could have a substantial impact on the investment under the SEBI Foreign Portfolio Investors (FPI) Regulations, 2019, resident Indians, including non-resident Indians (NRIs) and overseas citizens of India (OCIs), are restricted from directly registering as these individuals are allowed to be constituents of FPIs, subject to specific conditions on contribution limits and control within the funds. For resident Indian non-individuals, participation in FPIs is permitted if they meet certain criteria, including the type of funds they manage or sponsor and the contribution limits for specific categories of consultation paper comes at a time when the government is looking to enhance the role of IFSCs in India's financial sector, with an eye on attracting more global capital. By proposing to widen the scope for resident Indian participation , SEBI aims to make the FPI route more accessible for a broader range of investors, including mutual funds, which could significantly diversify their foreign proposals also reflect an effort to bring Indian financial regulations in line with international standards while fostering a more dynamic and globally connected investment public has been invited to submit comments on these proposals by August 29, 2025, through the SEBI website. SEBI's move to open up the process for public input underscores the importance of stakeholder feedback in shaping policies that affect both retail and institutional consultation process will likely influence the final regulatory framework and could signal a shift towards more liberalized foreign investment rules for Indian the introduction of these measures, the Indian investment community is poised to see significant changes that could reshape the way FPIs operate within India, offering new avenues for growth and diversification in the global markets.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
9 minutes ago
- Economic Times
Parag Parikh Flexi Cap Fund increases stake in ITC and 11 other stocks in July
Parag Parikh Flexi Cap Fund strategically increased its holdings in ITC and eleven other stocks during July. Parag Parikh Flexi Cap Fund, the largest active fund and flexi cap fund, increased its stake in ITC and 11 other stocks in the month of July. The fund added around 47.50 lakh shares of ITC taking the total number of shares to 12.21 crore in July against 11.74 crore in June. The other stocks added in the portfolio included Axis Bank, Bharti Airtel, Cipla, Dr. Reddy's Laboratories, EID Parry India, HCL Technologies, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Power Grid Corporation of India, Zydus Lifesciences. Also Read | Raksha Bandhan: Could a mutual fund SIP gift today secure your sibling's future? It added around 65.70 lakh shares of Power Grid Corporation of India, followed by 31.16 lakh shares of ICICI flexi cap fund reduced its stake from IPCA Laboratories and sold 7.45 lakh shares of this stock from the portfolio. Only one new stock was added in the portfolio in the said period. Motilal Oswal Financial Services was the new entrant in the portfolio and around 5.91 lakh shares were added to the portfolio. The fund did not make a complete exit from any stock in the mentioned time period. Exposure in nearly 15 stocks remained unchanged in July which includes Bajaj Holdings & Investment, Balkrishna Industries, CDSL, Coal India, Indian Energy Exchange, Infosys, Mahindra & Mahindra, MCX, Swaraj Engines, and Zydus Wellness. Parag Parikh Flexi Cap Fund is an open-ended dynamic Equity scheme investing across large cap, mid cap, small cap investment objective of the fund is to seek to generate long-term capital growth from an actively managed portfolio primarily of Equity and Equity Related Securities. The scheme shall invest in Indian equities, foreign equities and related instruments and debt securities. Launched on May 24, 2013, the fund had an AUM of Rs 1.13 lakh crore as on July 31, flexi cap fund is benchmarked against NIFTY 500 (TRI) and is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya. Also Read | Over 50 mutual fund SIPs give negative returns in 1 year. Should you pause, redeem, or continue? According to the monthly release by the fund house, the core portfolio consists of equity investments made with a long term outlook and the factors considered while investing are quality of management, quality of the sector and the business (return on capital, entry barriers, capital intensity, use of debt, growth prospects etc) and the valuation of the companies. The endeavor of the fund management team is to identify opportunities for long term investments.'We continue to look at individual investments on their own merits and will not hesitate to invest if an opportunity looks attractive. As usual, our investment stance does not depend much on the macro-economic situation but is focussed on individual companies. We have about 23.29% in cash holdings, debt & money market instruments and arbitrage positions which can be deployed in long term investments at appropriate levels,' the fund house said.
&w=3840&q=100)
First Post
9 minutes ago
- First Post
Former US NSA John Bolton calls out Trump on India tariffs, warns of big cost
John Bolton, who has been Donald Trump's National Security Advisor (NSA) in his first term, called out the American president's leniency on China, and tariffs on India, saying it could jeopardise decades of US efforts to bring India away from Russia and China read more US President Donald Trump has jeopardised decades of American efforts to bring India away from Russia and China, his former aide John Bolton. File image/AFP 'An enormous mistake.' That's how America's former National Security Advisor, John Bolton, views US President Donald Trump's 50 per cent tariffs on India. Trump's former aide minced no words on the levies that the American president was imposing, warning that the measures intended to hurt Russia, could end up having the opposite effect by pushing New Delhi closer to Moscow and Beijing. 'Trump's tariffs against India are intended to hurt Russia but they could push India closer to Russia and to China to oppose these tariffs,' John Bolton told CNN in an interview. STORY CONTINUES BELOW THIS AD He further pointed out that Trump's apparent leniency towards China would jeopardise decades of American efforts to bring India away from Russia and China. While the US president has levied a 25 per cent penalty on India for buying Russian oil on top of another 25 per cent tariff on Indian goods, he has held back on China after engaging in a brief trade war in April. As of now, Beijing has been slapped with a 30 per cent tariff, pending a deal. Notably, Treasury Secretary Scott Bessent has suggested China's August 12 deadline could be extended if negotiations appeared promising. Earlier too, Bolton flagged the tariffs on India in an opinion piece for US news outlet, The Hill. He wrote that Trump's leniency towards Beijing could be seen as sacrificing the US' strategic interests in this 'zeal for a deal' with President Xi Jinping. 'The White House seems headed toward more lenient treatment for Beijing on tariff rates and other metrics than it imposed on New Delhi. If so, it will be a potentially enormous mistake,' his opinion piece read. In the same piece, he also pointed out that by the 'levying tariffs on friend and foe alike' has likely caused US 'a considerable loss of trust and confidence, built up over decades of effort, in exchange for minimal economic gains — if any — and the risk of formidable losses'. Bolton has repeatedly called out Trump's actions in the past few months. Earlier in a July interview to CNBC-TV18, he pointed out that trade and security issues are being treated in silos in Washington, which runs counter to how countries like India perceive their bilateral relationship with the United States. While New Delhi expects alignment on both fronts, Trump's focus on tariffs and punitive trade actions could strain ties, especially at a time when closer cooperation is needed to counter China's growing influence. STORY CONTINUES BELOW THIS AD Meanwhile, India, has so far, refused to bend to Trump's demands on Russian oil. In fact, it has defended its oil imports and called the tariffs 'unfair and unreasonable'. Russia has extended support to New Delhi and accused the US of exerting illegal trade pressure on India - a week before Trump would meet with Russian President Vladimir Putin. With inputs from agencies
