Tale of the Tape 

Good evening boys and girls. Markets are back where they were at the beginning of the month! 

Nifty and Sensex closed down for a third straight day. PS - the Indian Rupee hit a new all-time low of 88.29 against the US Dollar. Concerns over reciprocal tariffs, persistent FII selling and weaker rupee drove heavyweight selling. Midcaps (-0.6%) and Smallcaps (-0.4%) also came under pressure. Over 2 stocks closed down for every gainer on the NSE500. FMCG (+1%) was the only positive sector on hopes of a consumption boost driven by GST cuts. Meanwhile, Real Estate (-1.3%), Auto (-0.9%) and IT (-0.9%) got smashed. 

In today’s edition of the Daily Rip we break down all the rumoured GST changes and its impact on sectors + individual stocks, a first Made In India semiconductor rollout, Samvardhan Motherson’s latest acquisition and weekly movers and shakers. 

Honorable Mentions: 

Reliance Industries (-2%) was in focus after the company announced plans to list Jio in the first 6 months of 2026. Stay tuned for our full analysis and deep dive of RIL’s 48th Annual General Meeting. Samman Capital (previously Indiabulls Housing Finance) jumped +7% intraday after being included in the F&O segment.

Check out the NSE 500 heatmap:

Market
GST 2.0: A Game Changer?

It’s no surprise that foreign investors are on a selling spree! ICYMI - FIIs sold about $13 billion in 2025 so far. And when you combine that with the drop in FDI, India has seen zero net foreign inflows over the last five years. Consequently, foreign ownership of Indian stocks is also at a 15-year-low.

But, WTF happened? Well, there are two big factors:

1) Bang for the buck: The biggest problem is that corporate earnings have been disappointing for 5 quarters now. Nifty EPS growth in FY25 was the first single-digit growth in five years. And FY26 is forecast to be in low double-digits. The problem, as Amansa Capital’s Akash Prakash puts it, is that “you can’t be the second most expensive market in the world -- far above emerging market valuations -- and deliver just 10% EPS growth”. Either valuations need to fall heavily or India’s listed companies need to perform better!

2) Weak growth story: Some of India’s shine has been wiped off over the last year. GDP growth slowed down. Key sectors like IT and auto took a growth hit. This was the exact moment India was meant to speed up, but it slowed down. It doesn’t help that the whole China+1 manufacturing narrative didn’t play out and now looks impossible with Trump’s 50% tariffs. PS - India also has no sunrise sectors that’s popping off globally. We got no AI stocks; no company either producing chips or mind-blowing software.

Big Picture: There will always be individual stock opportunities. But if we want broad market growth, we need more than just domestic investors and their SIPs. Almost every expert say this is India’s big opportunity to push through more reforms, encourage private capex and get us back to the 8%+ growth that FIIs need before they come back in huge numbers.

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Vijay Kedia Portfolio Changes

Who doesn’t want to know which stocks legendary investor Vijay Kedia is currently holding? In this video, we cover his top holdings and latest portfolio updates along with fundamental views on the same.