Despite a strong and improving Return on Equity (38.5%), the company's profit growth shows extreme volatility, with a TTM recovery sharply contrasted by a nearly 38% YoY net profit decline in the latest quarter, overshadowing modest sales growth.
While the stock’s attractive P/E of 16.6 and high 8% dividend yield suggest value, retail investors should exercise caution and investigate the significant net profit plunge, as it creates a major discrepancy with otherwise healthy operating profit and challenges the overall fundamental stability.
News TidBits
Swiggy recently raised a significant ₹10,000 crore through a Qualified Institutional Placement (QIP), demonstrating strong investor confidence in its growth trajectory.
The QIP saw robust participation from major domestic institutional investors, underscoring local capital's belief in the company's future prospects and market position.
The capital infusion is strategically aimed at strengthening Swiggy's balance sheet, providing it with ample resources for future expansion initiatives.
A primary focus for the raised funds is to propel the expansion of its quick commerce arm, Instamart, indicating aggressive growth plans in the rapidly evolving delivery sector.
This successful capital raise positions Swiggy well to compete in the fast-paced quick commerce market, potentially increasing its market share and long-term valuation.
Stacks on Stacks: Tip Time 🤑
True investing success often stems not from predicting market highs or lows, but from the disciplined, consistent allocation of capital into quality assets, allowing compounding to work its silent magic over decades.
Inside The Fund
Fund Size:
NAV: ()
Top News Developments
FPIs Withdraw Significant Capital from Indian Equities Amid Global Shifts
Foreign Portfolio Investors (FPIs) pulled out a net ₹17,955 crore from Indian equities in early December, contributing to a total outflow of ₹1.6 lakh crore for 2025, driven by rupee depreciation, elevated US interest rates, and rich Indian valuations relative to other emerging markets.
This substantial outflow primarily impacts large-cap stocks and could put further pressure on the Indian Rupee, potentially increasing borrowing costs and slowing credit growth across the economy.
Despite the foreign selling pressure, strong Domestic Institutional Investor (DII) inflows of ₹39,965 crore in the same period have provided a crucial cushion, demonstrating domestic market resilience and maintaining liquidity.
Retail investors should be cautious regarding high-valuation large-caps, as sectors like financials (HDFC Bank, ICICI Bank) and IT (Infosys) are particularly vulnerable to continued FPI selling pressure, potentially leading to short-term bearish sentiment.
A rebound in FII inflows is anticipated for 2026, especially if the rupee weakens further and global concerns around AI-led risks shift focus, which could reverse the current trend and support Indian market growth.
Top Indian Firms Experience Substantial Market Cap Erosion
Eight of India's top 10 most valued firms collectively saw their market capitalization erode by ₹79,129 crore, with Bajaj Finance and ICICI Bank experiencing the most significant hits.
This decline is largely attributed to profit booking, ongoing FPI outflows, and broader market volatility, reflecting a rotation away from potentially overvalued large-cap stocks.
The market cap erosion in large financials could signal potential supply chain strain if these institutions tighten credit, impacting various economic sectors.
For retail investors, this trend suggests a cautious outlook for large-cap segments in the short term, but it also boosts the relative appeal and performance of small and mid-cap stocks, which have shown resilience.
This rotation indicates a shift in investor preference, with domestic money potentially seeking value and growth opportunities outside the heavily weighted large-cap space, especially in niche sectors like pharma and auto components.
Raghuram Rajan Optimistic on Indian Market Rebound Post US-India Trade Deal
Former RBI Governor Raghuram Rajan has expressed a bullish outlook, stating that Indian stocks are likely to strengthen significantly once a US-India trade deal is finalized, provided tariffs are reduced to a more competitive range of 10-20%.
Such a trade deal is crucial as it would address the current tariff cloud hindering India's growth and could reverse the trend of FPIs shifting capital towards the US amid AI-driven euphoria.
The finalization of a trade agreement would enhance policy certainty and could significantly spur growth in export-oriented sectors, manufacturing, and IT, benefiting companies like Tata Motors, Larsen & Toubro, and TCS.
Renewed foreign inflows stemming from a favorable trade deal would inject liquidity into the Indian markets, potentially reversing the FPI outflows and providing a bullish catalyst for weeks and quarters ahead.
However, the realization of this bullish scenario hinges directly on the progress and success of ongoing negotiations, making the US-India trade deal a critical market trigger to monitor for retail investors in the near to mid-term.
Small and Midcap Stocks Outperform Amidst Broader Market Volatility
While large-cap firms faced significant market cap erosion and FPI outflows, select smallcap stocks posted impressive gains of up to 27% over the past five trading sessions, highlighting a divergent market trend.
This strong performance in the small and midcap segments signals renewed investor interest and a potential shift in capital allocation from larger, possibly overvalued, stocks to smaller, high-growth opportunities.
Retail investors are finding attractive prospects in niche sectors within the smallcap space, including specialty chemicals, auto components, media, IT, and infrastructure, which are showing robust momentum.
Ten penny stocks (under ₹20 with sub-₹1,000 crore market cap) even became multibaggers in FY26, delivering gains up to 515%, underscoring the high-risk, high-reward potential in the micro-cap segment.
This trend suggests that while overall market sentiment may be cautious due to FPI activities, domestically driven liquidity and targeted investments are creating significant opportunities in the smaller market capitalization categories.
Cha-Ching Cheatsheet 💵
Embrace the 'Circle of Competence' by focusing your investments on industries and businesses you genuinely understand, which significantly reduces speculative risk and enhances your ability to make informed, rational decisions.
* Valuation category is calculated as a weighted average of PE ratio, CAPE, forward PE, historical PEG, and forward PEG. We are currently showing PE, Forward PE, and Forward PEG for reference.
US Federal Reserve rate cut and less hawkish outlook spurred global rebound, with Dow and S&P 500 at records, positively influencing Indian indices on December 12 despite tempered local gains.
Japan’s 10-year yield at 1.93% raises yen carry trade unwind concerns, though India remains relatively insulated from direct impacts on equities.
China’s heavy investments create excess capacity amid weak earnings, yet equity rally persists; global tariff pressures from US add uncertainty for emerging markets like India.
US economy faces tariff-driven costs with AI growth diverging between Magnificent Seven and broader market; US-India trade deal uncertainty contributes to FII outflows from India.
Rupee dips below 90 amid weak currency trends and crude oil movements tracked closely; global FII shifts led to USD 2 billion exit from Indian equities in early December.
Emerging Opportunities
Buy-on-dips strategy in Nifty around 25,900-25,800 supports amid technical resilience and RBI rate cut confidence, targeting upside to 26,400-26,500 for medium-term gains.
Bank Nifty recovery from 58,800 lows signals strength near supports, with potential to 59,850-60,000; attractive for dips despite volatility and FII selling.
Large-cap valuations at historical average of 21.5x offer relative value versus premium mid/small caps, positioning for steady growth amid RBI growth support.
Positive gold/silver outlook from central bank buying and supply constraints presents contrarian hedges amid equity volatility and rupee weakness.
Policy & Regulations
The Reserve Bank of India (RBI) recently cut the repo rate to 5.25%, a move aimed at boosting credit flow and stimulating economic activity, particularly in manufacturing and real estate. This reduction is expected to make loans cheaper, encouraging consumer spending and corporate investments.
The government is actively pushing for a US-India trade deal, with former RBI Governor Raghuram Rajan emphasizing its potential to significantly strengthen Indian markets by reducing tariffs and attracting foreign capital. Such a deal could provide a major boost to export-oriented sectors and manufacturing.
New regulations are being considered to streamline the IPO process, aiming to make it more efficient for companies to list and provide clearer guidelines for investors. This could further encourage market participation and foster capital formation.
There's an ongoing focus on fiscal consolidation efforts to manage the current account deficit and strengthen the rupee. Policies are being implemented to control government spending and increase tax compliance, aiming for long-term economic stability.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$89653
$1.79T
-0.93%
-28.86%
Ethereum (ETH)
$3097.29
$373.64B
-0.89%
-37.38%
Tether (USDT)
$1
$186.28B
0.01%
-24.41%
BNB (BNB)
$891.49
$122.79B
-0.18%
-34.92%
XRP (XRP)
$2.01
$121.03B
-1.48%
-44.98%
The overall cryptocurrency market experienced a modest upward movement in the past 24 hours, with the global market capitalization edging to approximately $3.16 trillion, marking a slight rise of about 0.02%. This indicates a relatively stable, albeit flat, short-term trend, rather than any dramatic shifts in market valuation or investor sentiment.
Major digital assets like Bitcoin and Ethereum displayed typical daily fluctuations, with Bitcoin posting a minor slip of 0.07% to $90,234.36, while other tokens showed a mixed performance of modest gains and losses. Despite these minor price corrections in individual assets, trading activity remained robust with around $64.81 billion changing hands, suggesting continued investor engagement and liquidity within the crypto ecosystem, though without a clear directional trend for most major coins like BNB or XRP which also saw slight declines.
Indian Macroeconomy
Currency
Exchange rate against USD
90.58
0.32
Previous: 90.26
As of Dec 25
Nominal GDP
Annual growth including inflation
8.2%
0.4%
Previous: 7.8%
As of Sep 25
CPI Inflation
Consumer price increase
0.71%
0.46%
Previous: 0.25%
As of Nov 25
Repo Rate
RBI lending rate
5.25%
-0.25%
Previous: 5.5%
As of Dec 25
Trade Balance
Exports minus imports
$-41.68B
$-9.53B
Previous: $-32.15B
As of Oct 25
Current Account
Global trade, income & transfers
$-12292M
$-9570M
Previous: $-2722M
As of Sep 25
Mfg PMI
Manufacturing activity level
56.6 points
-2.6 points
Previous: 59.2 points
As of Nov 25
Services PMI
Services activity level
59.5 points
0.6 points
Previous: 58.9 points
As of Nov 25
India's economic landscape presents a mixed picture, with GDP annual growth strengthening to 8.2% in September 2025, suggesting robust underlying expansion. However, this growth is accompanied by a rise in the inflation rate to 0.71% in November 2025, which could pose a challenge to consumer purchasing power if the trend continues. Encouragingly, the interest rate saw a reduction to 5.25% in December 2025, a move by the RBI that could stimulate credit growth and boost investment across sectors like manufacturing and real estate.
Despite positive GDP and interest rate adjustments, the Indian Rupee depreciated to 90.58 against the dollar, contributing to India's underperformance against Asian peers in dollar terms. This depreciation, coupled with worsening trade and current account deficits, could increase import costs and make foreign investments more expensive for domestic entities. While the Manufacturing PMI experienced a slight dip, the Services PMI showed an improvement, indicating resilience in the services sector and suggesting a potential policy-led recovery for 2026, driven by anticipated rate cuts and liquidity easing, which would likely revive demand and corporate earnings.
Inside The Fund
