Indian defence stocks have seen an average year-on-year gain of 67 per cent, driven by renewed interest following 'Operation Sindoor' and a broader increase in global geopolitical tensions, with the combined market capitalisation of 18 firms increasing by approximately 2.3 trillion.
'What we are witnessing is a massive anti-incumbency wave that has cut across all social and political divides.'
Small- and midcap stocks have delivered their biggest monthly rally in 12 years, but rising oil prices and global tensions could make the road ahead volatile.
'Markets never fully lose hope. But an important shift could come if the Strait remains closed -- moving from high prices to no prices.'
Despite geopolitical tensions and FII outflows, Indian small and midcap stocks have not only recovered losses but are also outperforming largecap indices, driven by attractive valuations, domestic institutional support, and a rebound in earnings.
'In India's case, an extended earnings slowdown accompanied by rich valuations have dimmed returns since late 2024.'
'... with the rest split between mid and smallcaps, as valuations are becoming more attractive across segments.'
'FPIs are unlikely to return unless there is equilibrium between valuation premium and earnings growth.'
'Mark Mobius's life was dedicated to investing.'
'In investing, poor sentiment is always a good vintage to build a portfolio.'
'We have lost 70-80 per cent of our business from foreign guests.'
'The March correction was clearly due to the war and with prospects of that coming to a conclusion, there is a natural rally.'
New demat account additions in India reached an 11-month low in March, with only 2.15 million new accounts opened, significantly below the 12-month average. This slowdown is attributed to a sharp decline in equity markets, escalating West Asia tensions, and increased crude oil prices impacting India's economic outlook.
Financial year 2025-26 (FY26) saw a significant shift in corporate fundraising, with rights issues more than doubling to a multi-decade high of 51, raising 44,290 crore, while qualified institutional placements (QIPs) more than halved to 29 issues, mobilising 62,954 crore, driven by sharp equity market corrections and regulatory changes.
Fixed deposits from nationalised banks delivered higher returns than equities, outperforming both inflation and stock market benchmarks.
Analysts warn that global markets are significantly underpricing the risk of an oil price shock, with Brent crude potentially soaring to $150 per barrel if the West Asia conflict escalates or damages critical oil and gas infrastructure. This could lead to severe inflation and economic repercussions, particularly for import-dependent nations like India.
Domestic institutional investors, on the other hand, made a net investment of Rs 1.13 trillion during this period.
Foreign brokerages have started to cut their year-end targets for the Nifty 50 index amid the ongoing West Asia conflict.
Benchmark indices tumbled about 2 per cent on Friday, capping one of the most turbulent weeks for domestic equities as investors fretted that the West Asian conflict could drag on for weeks or even months.
The BSE Sensex and the Nifty 50 declined around 4.5 per cent each since the start of the West Asia conflict.
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