Tale of the Tape 

Hola Amigos! It was another rough day for the markets. 

Nifty and Sensex extended their losses; closing down -0.9% each. Trump tariff and monthly F&O expiry pressure kept the bears in charge for the day. Broader markets got KO-ed too, with Midcaps (-1.3%) and Smallcaps (-1.5%) seeing deeper cuts. The market breadth was extremely negative with 397 stocks in the NSE 500 ending lower.

Not a single sector closed in the green. IT stocks (-1.6%) led the sell-off, followed by Real Estate (-1.5%) and Banks (-1.2%).

In today’s issue of the Daily Rip we look at why FIIs have fallen out of love with India, Maruti Suzuki’s export bet with the e-Vitara, top newsmakers and more.

Honourable mentions: 

SBI Cards was down -2% after being hit by a double downgrade by Morgan Stanley; the brokerage sees a -11% downside from current levels. Recently listed, Dr Agarwal’s Eye Hospital tanked -14% after its board approved the merger with its healthcare arm.

Check out the NSE 500 heatmap:

Market
Why Are FIIs Selling?

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.