Despite impressive TTM profit growth (341%) and a recent positive shift in ROE, the company's historical ROE remains low (1.52%) and sales growth has been inconsistent, suggesting ongoing challenges in capital efficiency.
The extremely high P/E of 182, coupled with a significant QoQ net profit decline in the latest quarter, raises concerns about the sustainability of the profit surge and whether the current valuation is justified by core, sustainable fundamental improvements.
News TidBits
Delhivery, a leading logistics and supply chain services company, delivered robust financial results in Q3 FY26, posting an impressive 58.4% net profit growth, indicating strong operational efficiency and cost management strategies.
The company also reported a healthy 18% increase in revenue during the December quarter, underscoring sustained demand for its logistics solutions across its diverse client base.
This solid performance comes amidst broader market volatility and a post-Budget sell-off, highlighting Delhivery's resilience and ability to grow even in challenging economic environments.
For retail investors, Delhivery's consistent growth in profitability and revenue signals a promising outlook within the expanding Indian e-commerce and logistics sector, driven by increasing online penetration.
The positive earnings report provides a strong fundamental basis for investor confidence, suggesting the company is well-positioned to capitalize on India's evolving digital economy and supply chain needs.
Stacks on Stacks: Tip Time 🤑
The astute investor understands that market volatility is not risk itself, but merely the price you sometimes pay for opportunity; true risk lies in an unsound investment thesis or an overleveraged position.
Top News Developments
Union Budget 2026 Triggers Sharp Market Selloff Amid STT Hike
The Union Budget 2026 presentation on a rare Sunday trading session led to the worst Budget-day performance in six years, with Sensex dropping over 1,500 points (1.9%) and Nifty 50 falling nearly 500 points (2%), erasing ₹11 lakh crore in market capitalisation.
The primary driver for the immediate market downturn was the revised Securities Transaction Tax (STT) framework, imposing a 150% increase on futures transactions and a 50% hike on options premium and exercise, intended to curb excessive speculation.
Brokerage and exchange stocks like BSE and Angel One experienced steep declines of 5-10% due to concerns over reduced derivatives trading volumes and liquidity, signaling a direct operational impact from the STT increase.
Despite the short-term bearish sentiment, experts anticipate a mixed to bullish medium-term outlook as focus shifts to the budget's long-term growth commitments, including a substantial capital expenditure push of ₹12.2 lakh crore and broader structural reforms.
The budget's commitment to fiscal consolidation, targeting a 4.3% GDP deficit and a record ₹17.2 lakh crore gross borrowing plan, raises concerns about potential upward pressure on bond yields, which could negatively impact PSU banks due to mark-to-market losses.
Budget 2026: Strategic Sectoral Allocations Drive Gains, Others Face Overlooks
Sectors such as Electronics & Semiconductors are set for a boost with an increased outlay of ₹40,000 crore and the launch of India Semiconductor Mission 2.0, indicating strong government support for domestic production and R&D, creating long-term opportunities for related manufacturers.
Data Centers & IT Services are poised for significant benefits from a tax holiday until 2047 for foreign cloud service providers using Indian data centers and eased tax norms for IT exporters, enhancing India's appeal as a digital hub and supporting growth for IT companies.
Infrastructure & Railways will see growth driven by a higher capital expenditure of ₹12.2 lakh crore and plans for seven high-speed rail corridors, benefiting construction, cement, and engineering sectors, while dedicated rare earth corridors signal a push for critical mineral supply chain development.
Conversely, despite a 15% budget increase, Defence stocks fell due to the absence of specific new policy announcements for the sector, and the general Real Estate sector saw declines due to a lack of major incentives, though REITs benefited from proposals for dedicated CPSE REITs.
ITC shares notably declined following a December cigarette tax overhaul and a statutory increase in NCCD rates for tobacco products, highlighting ongoing policy uncertainty as a specific risk factor for investors in such consumer discretionary companies.
India Opens Avenues for Foreign Capital with Euroclear Listing and Direct Stock Investments
The Indian government is moving forward with a proposal to list its sovereign debt on the Euroclear platform, a strategic step that could significantly broaden access for overseas investors and deepen the secondary-market liquidity of government bonds.
This initiative, which restricts settlement via Euroclear to long-term investors, is designed to channel foreign capital into longer-dated securities, potentially making fixed-income instruments more attractive and influencing global portfolio managers' asset allocation decisions.
New proposals within the Budget will allow foreign individuals to directly invest in Indian stocks, with an individual limit up to 10% and an aggregate cap up to 24%, significantly widening the potential foreign investor base for Indian equities.
Additionally, Non-Resident Indians (NRIs) will now be permitted to invest in Portfolio Management Schemes (PMS), further easing avenues for foreign capital and providing more sophisticated investment options for the Indian diaspora.
These regulatory changes collectively reflect a concerted effort to enhance India's integration into global financial markets, attract diverse foreign capital flows, and deepen both its equity and debt capital markets for sustained growth.
Global Gold and Silver Prices Plummet, Triggering Sell-off in Indian Metal Stocks
Gold and silver prices experienced a dramatic global plunge after hitting record highs, driven primarily by a strengthening US dollar, speculation of higher US interest rates, and widespread profit-booking activities.
This sharp correction in precious metals immediately translated into heavy selling pressure on Indian metal stocks, with major players like Hindustan Zinc, Vedanta, and Hindustan Copper witnessing significant declines.
Retail investors holding physical gold, silver, or related ETFs might face short-term losses as the bullion market reacts to global macroeconomic shifts and altered investor sentiment towards safe-haven assets.
In response to the volatility, BSE imposed a 20% circuit limit on Gold and Silver ETFs, indicating regulatory intervention to manage extreme price movements and protect investors from undue market shocks.
The broader impact underscores the sensitivity of commodity markets to global monetary policy outlooks and currency strength, which in turn have a direct and significant influence on the performance of related Indian equities.
The global cryptocurrency market is undergoing a sharp correction, with Bitcoin notably falling below $78,500 and other major tokens like Ethereum and BNB experiencing significant declines, indicating a broad risk-off sentiment among crypto investors.
Adding to market pressures, reports of another cryptocurrency platform breach have heightened security concerns within the digital asset ecosystem, potentially deterring new investors and accelerating sell-offs due to perceived risks.
Despite the price drops, trading volumes remain high across numerous exchanges, suggesting active participation and speculative interest, but also hinting at increased volatility that retail investors must navigate carefully.
For Indian retail investors, the Union Budget 2026 maintained the existing cryptocurrency taxation framework, including a 1% TDS and restrictions on loss set-offs, a decision that largely disappointed the domestic crypto industry.
This unchanged tax policy could continue to be a barrier for wider mainstream adoption and innovation in India's crypto space, potentially impacting the growth prospects of crypto-related businesses and overall investor enthusiasm.
Cha-Ching Cheatsheet 💵
Before chasing the latest market fad, embrace the wisdom of 'inversion' by first identifying what could unequivocally destroy your portfolio, then strategically avoiding those pitfalls, rather than solely seeking opportunities.
* 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 markets closed lower on Friday with S&P 500 down 0.43%, Nasdaq Composite dropping 0.94% on rising memory chip costs flagged by Apple, and Dow falling 0.36%, contributing to cautious GIFT Nifty futures at open.
Asia Pacific markets ended mostly lower on Friday amid Apple's chip cost warnings and China's Securities Times cautioning against speculative trading, influencing subdued sentiment ahead of India's Budget session.
GIFT Nifty futures traded 4 points lower at 25,420 as of early Sunday, signaling flat-to-negative global cues for Indian indices amid ongoing geopolitical tensions and rupee weakness.
Global equities pressured by US tech sell-off and China trading warnings extended into Asian hours, setting a fragile tone for India's special Budget trading day.
Mixed global cues from Wall Street declines and Asian downturns, coupled with concerns over interest rates and trade policies, weighed on Indian market opening ahead of Union Budget 2026.
Emerging Opportunities
Infrastructure sector gains traction with Budget 2026 raising capex target to ₹12.2 lakh crore from ₹11.2 lakh crore, boosting stocks like L&T, Ircon International, and RVNL for medium-term growth in infra projects.
Electronics manufacturing emerges promising as outlay hiked to ₹40,000 crore in FY27, driving rallies in Syrma SGS Technology (up 5.95%), Dixon Technologies (up 4.21%), and Kaynes Technology for long-term export potential.
Defence spending up 15% to ₹7.85 lakh crore in FY27 offers contrarian recovery opportunity despite Bharat Electronics' 6% drop, positioning the sector for sustained policy support and orders.
Higher overall capex and infra measures signal medium- to long-term opportunities in capital goods and construction, countering Budget day volatility for patient investors.
Policy push in electronics and infrastructure amid STT hike creates contrarian bets on select beneficiaries like electronic EMS firms and infra plays, eyeing FY27 growth despite short-term market pessimism.
Policy & Regulations
The Union Budget 2026 introduced a significant revision to the Securities Transaction Tax (STT) framework, increasing it by 150% on futures transactions and 50% on options premium and exercise, a move aimed at curbing excessive speculation but likely to reduce derivatives trading volumes and liquidity, thereby impacting brokerage and exchange stocks.
The government is actively pursuing a proposal, led by the RBI, to list Indian sovereign debt on the Euroclear platform, intending to restrict settlement to long-term investors; this strategic step is designed to broaden access for overseas investors, deepen bond market liquidity, and channel foreign capital into longer-dated securities, potentially shifting allocation patterns away from equities.
New proposals were also made to allow foreign individuals to directly invest in Indian stocks with an individual limit of 10% and an aggregate cap of 24%, alongside permitting Non-Resident Indians (NRIs) to invest in Portfolio Management Schemes (PMS), which together aim to enhance foreign investment inflows and diversify the investor base in the Indian equity market.
For investors in gold, the capital gains tax exemption on Sovereign Gold Bonds (SGBs) will now apply strictly only if purchased directly from the RBI and held until maturity, a policy change that could diminish the appeal of secondary market SGBs and necessitate a review of investment strategies.
Additionally, the Budget proposed a market-making framework and total return swaps on corporate bond indices to further deepen India's capital markets, while a high-level committee will review the state-run banking sector and restructure non-bank lenders to strengthen public sector financial institutions.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$78540
$1.57T
-4.84%
-37.71%
Ethereum (ETH)
$2390.76
$288.75B
-8.78%
-51.66%
Tether (USDT)
$0.99915
$185.21B
0.07%
-24.49%
BNB (BNB)
$770.04
$105.04B
-7.18%
-43.79%
XRP (XRP)
$1.64
$99.78B
-2.15%
-55.05%
The global cryptocurrency market experienced a sharp correction over the last 24 hours, with Bitcoin notably slipping below the $80,000 mark and registering a decline of approximately 5-6%, impacting investor sentiment significantly.
Other major cryptocurrencies followed suit, with Ethereum plunging by nearly 9% and BNB falling over 7%, indicating a widespread risk-off attitude among investors and significant profit-booking across the board.
Compounding the price pressures, news of another cryptocurrency platform breach has rattled the broader market, raising critical security concerns and potentially eroding overall investor confidence in the digital asset ecosystem.
Despite the sharp price drops and security incidents, trading volumes for Bitcoin remain high, with 24-hour market activity spread across thousands of exchanges, suggesting active participation and speculative interest continue even amidst heightened volatility.
From an Indian regulatory perspective, the Union Budget 2026 maintained the existing cryptocurrency taxation framework, including a 1% TDS and restrictions on loss set-offs, a decision that has largely disappointed the domestic crypto industry and may continue to influence investment behavior.
Indian Macroeconomy
Currency
Exchange rate against USD
91.64
-0.14
Previous: 91.78
As of Jan 26
Nominal GDP
Annual growth including inflation
8.2%
0.4%
Previous: 7.8%
As of Sep 25
CPI Inflation
Consumer price increase
1.33%
0.62%
Previous: 0.71%
As of Dec 25
Repo Rate
RBI lending rate
5.25%
-0.25%
Previous: 5.5%
As of Dec 25
Trade Balance
Exports minus imports
$-25.04B
$-0.51B
Previous: $-24.53B
As of Dec 25
Current Account
Global trade, income & transfers
$-12292M
$-9570M
Previous: $-2722M
As of Sep 25
Mfg PMI
Manufacturing activity level
56.8 points
1.8 points
Previous: 55 points
As of Jan 26
Services PMI
Services activity level
59.3 points
1.3 points
Previous: 58 points
As of Jan 26
India's economy continues its robust growth trajectory, with the GDP Annual Growth Rate reaching 8.2% in September 2025, an encouraging rise from the previous 7.8%, signaling underlying economic strength. This expansion is further underpinned by strong Manufacturing and Services PMI data, which stood at 56.8 and 59.3 points respectively in January 2026, indicating broad-based health across key sectors.
However, investors should note a significant increase in the inflation rate to 1.33% from 0.71% in December 2025, despite a slight reduction in the interest rate to 5.25%, which could lead to concerns about rising prices for consumers. Furthermore, the country's external balance is under pressure, as the Balance of Trade deficit widened to -$25.04 billion and the Current Account deficit expanded substantially to -$12292 million by September 2025, potentially impacting the rupee's stability.
The Union Budget 2026's announcement of a record ₹17.2 lakh crore gross borrowing plan and a fiscal deficit target of 4.3% of GDP raises concerns about potential upward pressure on bond yields, which could lead to mark-to-market losses for state-run banks and influence the attractiveness of fixed-income investments. The Economic Survey also highlighted global economic risks from volatile capital flows and financial tightening, factors that are now reflecting in currency markets and warrant close monitoring by retail investors.
