MMI is in the greed zone. It suggests that investors are acting greedy in the market, but the action to be taken depends on the MMI trajectory.
Since last week: Sentiment moved from Ext. Greed (70.37) to Greed (50.33).
Stock Spotlight Of The Day
HDFC Bank
Market Cap
11,50,281 Cr
Current Price
₹747
Stock P/E
15.1
Dividend Yield
1.74%
ROCE
7.04%
ROE
13.8%
Shareholding Changes (Impact Factors)
FIIs
QoQ
-3.62%
YoY
-4.25%
Mild foreign selling
DIIs
QoQ
3.14%
YoY
4.46%
Healthy domestic inflow
Promoters
QoQ
0%
YoY
0%
No change in promoter holding
Quarterly Summary (Absolute)
Revenue
QoQ
Slight growth
0.13%
YoY
Slight growth
0.46%
Expenses
QoQ
Reduced
-18.69%
YoY
Under control
-7.72%
Net Profit
QoQ
Slight uptick
1.85%
YoY
Mild gains
9.28%
Profit & Loss (Compounded)
Sales Growth
10 Years
19%
5 Years
22%
3 Years
27%
TTM
4%
Profit Growth
10 Years
20%
5 Years
19%
3 Years
18%
TTM
8%
Stock Price CAGR
10 Years
10%
5 Years
0%
3 Years
-2%
1 Year
-24%
Return on Equity
10 Years
16%
5 Years
15%
3 Years
15%
Last Year
14%
Fundamentals Corner
While historical 20% compounding suggests a powerhouse, current TTM figures reveal a jarring slowdown in sales (4%) and profit (8%) growth that signals a clear weakening of the company's compounding power.
The market has aggressively de-rated the stock to a 15.1 P/E, reflecting a lack of confidence in the growth trajectory despite a structurally resilient 14% ROE.
Despite a recent quarterly revenue jump, stagnant profit momentum and a five-year flat stock price confirm that the business is transitioning from a high-growth leader to a struggling value play.
News TidBits
The bank is strategically focusing on mobilizing deposits to improve its credit-to-deposit (LDR) ratio following the HDFC merger.
Asset quality remains stable with Gross NPAs staying within expected ranges, providing a cushion for future credit growth.
Management has indicated a focus on 'profitable growth' over aggressive market share expansion in the short term.
Institutional investors are closely watching the net interest margin (NIM) trajectory as the bank rebalances its high-cost liabilities.
Stacks on Stacks: Tip Time 🤑
The 'price' you pay determines your return; even a great company can be a poor investment if bought at an excessive valuation.
Metals Market
Commodity
Price
Day
Monthly
YoY
Gold
USD/t.oz
4331
-3.22%
-7.68%
30.78%
Silver
USD/t.oz
67.297
-8.86%
-12.95%
87.04%
Copper
USD/Lbs
6.2635
-3.8%
2.07%
30.14%
Steel
CNY/T
3161
0.32%
-2.41%
7.19%
Lithium
CNY/T
163000
-3.12%
-13.07%
170.76%
Iron Ore CNY
CNY/T
766
-0.2%
-6.13%
8.81%
Platinum
USD/t.oz
1797.9
-5.37%
-12.83%
53.37%
Cobalt Hydroxide
USD/MT
56504.41
-0.08%
0.12%
101.72%
HRC Steel
USD/T
1196
0%
5.37%
36.22%
Iron Ore
USD/T
102
0.04%
-7.99%
6.05%
Silicon
CNY/T
8585
-0.29%
-2.28%
18.09%
Scrap Steel
USD/T
401.5
0.38%
-4.52%
18.61%
Titanium
CNY/KG
48.5
0%
1.04%
-3.96%
Gold prices are seeing a period of consolidation around $2,600/oz as the US dollar strength weighs on dollar-denominated commodities.
Domestic steel manufacturers are facing margin pressure due to a surge in cheap imports from China and Vietnam, leading to calls for protective duties.
Aluminum prices on the LME have remained volatile amid supply-side uncertainties in bauxite sourcing from Guinea.
Copper demand is expected to remain firm in the long term, supported by India's rapid expansion in power transmission and EV infrastructure.
Top News Developments
US Fed Policy Shift Impacts Emerging Markets
A slower-than-expected pace of US rate cuts is keeping US Treasury yields high, leading to FII outflows from Indian equities.
The strengthening US Dollar Index (DXY) is creating depreciation pressure on the Indian Rupee, nearing the 84.50 level.
Corporate Earnings Season Recap
Nifty 50 earnings for the recent quarter showed a mixed bag, with banking and auto sectors outperforming while FMCG faced volume growth challenges.
Margin compression was visible in industries heavily dependent on imported raw materials due to global supply chain costs.
India's Push for Semiconductor Sovereignty
Multiple joint ventures between Indian conglomerates and global tech firms have been cleared for semiconductor fab and assembly units.
The move is expected to reduce long-term import dependence on electronics and create a high-tech manufacturing ecosystem.
IPO Watchlist
Ongoing IPOs
Zinka Logistics (BlackBuck) is currently in the subscription phase, aiming to raise capital for its digital platform expansion.
Institutional interest in the logistics tech space remains selective, focusing on path-to-profitability metrics.
Hexagon Nutrition IPOO
138.87 Cr
Date: 5 Jun - 9 Jun
List: 12 Jun
Subscription: 1.65x
GMP: 14.44%
Cha-Ching Cheatsheet 💵
Asset allocation is responsible for over 90% of portfolio return variability; picking individual stocks is secondary to getting the mix right.
* 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.
Stronger-than-expected U.S. jobs data lifted Treasury yields, so global risk appetite weakened and India faced foreign selling pressure in rate-sensitive equities.
Higher U.S. yields widened rate differentials, making dollar assets more attractive and reducing carry demand for Indian equities and the rupee.
Crude's earlier rise kept inflation worries alive, so India-linked transport, industrial and consumer names faced margin-risk repricing through the oil channel.
AI-led U.S. capex kept global growth leadership concentrated, pushing investors toward technology abroad and leaving India dependent on earnings delivery to retain allocation.
A firmer dollar and tighter Fed expectations raised EM funding costs, so Indian cyclicals with external borrowing exposure traded with a discount.
Emerging Opportunities
Chemicals exporters at early-cycle valuations because June rotation favors unloved mid-caps; market ignores margin recovery from operating leverage and inventory normalization.
Industrial automation and capital goods because domestic capex visibility improved; investors can position for order-book growth while benchmarks remain stuck in range.
Infrastructure EPC and road contractors because policy spending stays supportive; the trade is on execution leverage, not headline index direction.
Banking and NBFCs if RBI sounds less restrictive; even a stance shift can re-rate rate-sensitive lenders before earnings upgrades arrive.
Penny-stock turnarounds in niche manufacturing as a contrarian setup; delivery-volume accumulation and technical breakouts can attract momentum once liquidity confirms.
Policy & Regulations
SEBI has introduced new regulations for the SME IPO segment, including a minimum application size of ₹2 lakh to ensure better-informed participation.
The Finance Ministry is reportedly reviewing the GST rate structure for life and health insurance premiums to potentially reduce the tax burden.
New RBI guidelines on 'Internal Omni-channel' security are being implemented to curb rising digital payment frauds and improve consumer trust.
The government has extended the 'RoDTEP' scheme benefits to help exporters navigate global logistics disruptions and rising freight costs.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$60696
$1.22T
-2.75%
-51.86%
Ethereum (ETH)
$1558.99
$188.14B
-6.96%
-68.48%
Tether (USDT)
$0.999449
$187.01B
0.03%
-24.46%
BNB (BNB)
$574.5
$77.41B
-3.07%
-58.07%
USDC (USDC)
$0.999616
$75.50B
-0.02%
-4.20%
Bitcoin has recently breached the $90,000 mark, fueled by optimism regarding a more favorable regulatory landscape in the United States.
Global Spot Bitcoin ETFs have recorded massive net inflows, signaling increased institutional adoption of digital assets.
The Indian crypto market remains cautious as the industry awaits a clear domestic legislative framework on digital asset taxation and trading.
Indian Macroeconomy
Currency
Exchange rate against USD
95.19
-0.5
Previous: 95.69
As of Jun 26
Nominal GDP
Annual growth including inflation
7.8%
-0.2%
Previous: 8%
As of Mar 26
CPI Inflation
Consumer price increase
3.48%
0.08%
Previous: 3.4%
As of Apr 26
Repo Rate
RBI lending rate
5.25%
→
0%
Previous: 5.25%
As of Jun 26
Trade Balance
Exports minus imports
$-28.38B
$-7.71B
Previous: $-20.67B
As of Apr 26
Current Account
Global trade, income & transfers
$-13172M
$928M
Previous: $-14100M
As of Dec 25
Mfg PMI
Manufacturing activity level
55 points
0.3 points
Previous: 54.7 points
As of May 26
Services PMI
Services activity level
59.8 points
1 points
Previous: 58.8 points
As of May 26
India's GDP growth for Q2 FY25 moderated to 5.4%, a multi-quarter low attributed to soft manufacturing and mining activity.
The Reserve Bank of India has maintained the repo rate at 6.5%, though it shifted its stance to 'neutral', signaling potential future flexibility.
Consumer Price Index (CPI) inflation recently surpassed the 6% upper threshold, driven primarily by volatile food and vegetable prices.
Direct tax collections have shown a steady 15% year-on-year growth, indicating resilience in formal corporate and individual income sectors.
