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
Reliance Industries Limited
Market Cap
17,47,050 Cr
Current Price
₹1,291
Stock P/E
22.4
Dividend Yield
0.46%
ROCE
10.3%
ROE
8.91%
Shareholding Changes (Impact Factors)
FIIs
QoQ
-0.42%
YoY
-0.4%
Stable foreign holding
DIIs
QoQ
0.36%
YoY
1.1%
Stable domestic holding
Promoters
QoQ
0%
YoY
-0.1%
No change in promoter holding
Quarterly Summary (Absolute)
Sales
QoQ
Solid pickup
11.01%
YoY
Solid pickup
12.5%
Expenses
QoQ
Costs rising
14.18%
YoY
Costs rising
14.88%
Operating Profit
QoQ
Stable
-4.08%
YoY
Slight improvement
0.7%
Net Profit
QoQ
Minor dip
-7.63%
YoY
Minor dip
-8.94%
Profit & Loss (Compounded)
Sales Growth
10 Years
15%
5 Years
18%
3 Years
6%
TTM
10%
Profit Growth
10 Years
10%
5 Years
12%
3 Years
5%
TTM
14%
Stock Price CAGR
10 Years
19%
5 Years
5%
3 Years
4%
1 Year
-11%
Return on Equity
10 Years
9%
5 Years
9%
3 Years
9%
Last Year
9%
Fundamentals Corner
The company’s fundamentals are weakening as a decade-long stagnant ROE of 9% and a recent 9% drop in quarterly net profits highlight a failure to convert double-digit sales growth into bottom-line value.
Growth momentum is currently decoupling, with expenses rising faster than revenue, leading to flat operating profits despite a 12.5% jump in top-line sales.
The stock’s 11% decline over the past year correctly reflects this margin erosion, as a 22 P/E is difficult to sustain for a business with deteriorating profitability and mediocre capital efficiency.
News TidBits
Reliance Industries led a substantial ₹1.25 lakh crore market cap erosion among heavyweights last week, reflecting a broader de-rating amid global macroeconomic uncertainty.
The stock is approaching an ex-date for dividends and corporate actions this week, which is expected to drive short-term trading volumes and price adjustments.
Market analysts view the stock as a critical component for the Nifty 50 to maintain its 23,000–23,100 support zone, as a breach there could trigger deeper corrections.
Despite current price pressure, the company remains a key play in long-term high-conviction themes such as energy transition and digital infrastructure.
Key risks include energy price volatility and geopolitical tensions in West Asia, which could impact the company's trade margins and investor sentiment.
Stacks on Stacks: Tip Time 🤑
Market volatility is the price of admission for long-term compounding; the ability to ignore 'noise' is a more valuable asset than any technical indicator.
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%
Precious metals have faced significant selling pressure, with Gold and Silver prices dropping 3.22% and 8.86% respectively, driven by a strengthening USD and shifting global interest rate expectations.
Industrial metals show mixed dynamics; while Copper and Lithium fell over 3% due to manufacturing cycle concerns, Steel and Scrap Steel prices remained relatively resilient with marginal gains.
For Indian investors, softening global prices in Platinum and Iron Ore may impact mining and metal stocks, though domestic demand for HRC steel remains stable amid infrastructure growth.
Top News Developments
The Rise of the Structural Stabilizer: 4.3 Crore New Retail Investors
The NSE reported the addition of 4.3 crore new investor accounts in the past year, now representing 17% of the total base.
This explosive growth in retail participation provides a critical buffer against persistent FII outflows and global 'risk-off' sentiment.
Domestic liquidity is increasingly decoupling Indian market floors from traditional foreign institutional cycles.
AI Supply Chain Pivot and IT Sector Underperformance
Indian IT stocks are facing pressure as investors demand evidence that global AI investments translate into revenue for service providers.
Capital is shifting 'lower down' the supply chain toward electronics and hardware, a trend seen in South Korea now mirroring in India.
A transition toward 'bottom-up' stock picking is replacing broad-based sector bets in the technology and industrial space.
Strategic Consolidation and Institutional Confidence in Infrastructure
Significant stake purchases in Adani companies by SBI Mutual Fund signal a consolidation of domestic institutional confidence in the conglomerate's assets.
Private equity interest is shifting toward transport, digital infra, and green energy, marking these as the high-conviction themes of the year.
Consolidation in niche segments, such as ixigo’s majority stake in Brevistay, highlights a trend of incumbents buying growth in the travel-tech sector.
IPO Watchlist
Ongoing IPOs
Hexagon Nutrition's IPO is seeing steady interest with a 1.65x subscription rate and a 14.44% Grey Market Premium, indicating a healthy appetite for mid-market consumer-linked listings.
Hexagon Nutrition IPOO
138.87 Cr
Date: 5 Jun - 9 Jun
List: 12 Jun
Subscription: 1.65x
GMP: 14.44%
Cha-Ching Cheatsheet 💵
A portfolio's true resilience is not measured by its peak performance in a bull market, but by its capacity to prevent permanent capital loss during a 'risk-off' cycle.
Global Markets
Country
Category
Current PE
Forward PE
Forward PEG
🇮🇩 Indonesia
Highly Undervalued
12.0
8.8
0.3
🇬🇧 United Kingdom
Undervalued
15.8
13.2
0.8
🇫🇷 France
Undervalued
17.2
14.1
0.8
🇦🇺 Australia
Fairly Valued
20.5
18.0
1.5
🇩🇪 Germany
Fairly Valued
17.8
15.2
1.0
🇸🇬 Singapore
Fairly Valued
17.0
-
-
🇮🇳 India
Fairly Valued
19.7
18.3
2.5
🇺🇸 United States
Fairly Valued
25.8
21.8
1.4
🇨🇳 China
Fairly Valued
19.3
15.4
0.8
🇯🇵 Japan
Overvalued
21.0
18.7
1.8
🇰🇷 South Korea
Fairly Valued
23.0
8.9
0.1
🇹🇭 Thailand
Overvalued
17.2
-
-
* 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.
Global risk appetite improved on expectations of steadier growth, lifting EM allocations and supporting Indian equities through stronger cross-border buying into cyclical sectors.
A softer dollar eased imported inflation pressure, so the rupee stabilized and rate-sensitive Indian names gained on reduced currency and funding stress.
Crude stayed anchored by supply comfort, lowering India’s import bill and improving margin outlooks for transport, paint, and other oil-linked consumers.
Stronger global manufacturing signals lifted export growth expectations, so Indian IT and engineering names drew bids on better overseas demand assumptions.
Stable developed-market yields narrowed rate differentials, reducing pressure on EM central banks and allowing Indian financial assets to re-rate on easier liquidity expectations.
Emerging Opportunities
Capital goods and power equipment as capex cycles widen; order books are already visible, and domestic infrastructure spending can re-rate execution-heavy names before consensus upgrades.
Private banks on deposit franchise strength; loan growth stays intact while funding costs normalize, creating operating leverage without needing macro acceleration.
Contrarian play: export-oriented specialty chemicals after margin compression; inventory cleanup and lower input costs can drive earnings recovery while the market chases domestic cyclicals.
Railways and defense electronics as policy spending persists; long-duration contracts support visibility, and execution milestones can unlock valuation rerating.
Consumer durables tied to rural demand as monsoon and wage support improve volumes; the setup favors premium appliance and electronics brands over staples.
Policy & Regulations
The Reserve Bank of India is expected to maintain the repo rate at 6.50% to balance liquidity, while analysts watch for a potential cautious stance on growth-inflation trade-offs.
Regulatory scrutiny on market volatility is intensifying, as evidenced by Reliance Infrastructure’s appeal against Additional Surveillance Measure (ASM) restrictions imposed by exchanges.
The government is accelerating capital expenditure in the transport sector, with the Ministry of Railways announcing 60 next-generation train sets for the Kolkata Metro to boost engineering and construction equities.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$62503
$1.25T
2.88%
-50.43%
Ethereum (ETH)
$1628.59
$196.42B
4.23%
-67.07%
Tether (USDT)
$0.999509
$186.87B
0.01%
-24.46%
BNB (BNB)
$593.53
$79.93B
3.22%
-56.68%
USDC (USDC)
$0.999728
$75.47B
0.00%
-4.20%
Bitcoin has rebounded to $62,503 after a period of sharp oscillation that triggered roughly $1.6 billion in liquidations, reflecting a highly fluid and leveraged trading environment.
Altcoins like Ethereum and BNB have posted gains of over 3%, while total market capitalization hovers around the $2.2 trillion mark despite shifting sentiment.
Indian investors are focusing on the security and adoption trends of global exchanges as stablecoins like Tether and USDC maintain their pegs amidst broader market volatility.
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 remains robust at 7.8%, supported by strong Manufacturing and Services PMI readings of 55 and 59.8 respectively, indicating continued expansion in the industrial and service sectors.
The RBI has signaled a hawkish pivot by raising inflation forecasts and lowering growth projections for FY27, suggesting that anticipated interest rate cuts may be delayed.
A widening trade deficit of -$28.38 billion and geopolitical risks to crude prices remain critical tail risks, making the progress of the monsoon a vital determinant for food inflation and future monetary policy.
