As a writer of a stock market newsletter, I probably wouldn't be allowed to leave the building if I didn't quote Warren Buffett at least once a quarter. Buffett was no stranger to stock market volatility, and often said that 'The stock market is a manic depressive.'
If that is the case, we are definitely in the manic phase right now.
Unless you have been living in a lightless cave with no wifi, you know the reason why. US President Trump has a very large microphone recording and broadcasting everything he says and does. Most of what he is saying and doing is pretty chaotic: deep cuts in government programs, tariffs against friends and enemies alike, and threats of more to come.
As Trump generates fresh headlines everyday, one must ask: do investors want the news to be interesting? I would argue that they do not. Stock markets prefer predictable policy environments, where business estimates are met, growth is steady, and there is peace in our time. When that changes, investors become cautious and sentiment goes negative.
When politics gets noisy, the parties closest to the politicians often see the most collateral damage. Two major entrepreneurs who have aligned themselves closely to their relevant administrations, Gautam Adani and Elon Musk have both built strong ties with their respective administrations. That comes with many benefits. But the spotlight is bright and can give you a headache.
In this week's Analyticks,
Musk and Adani: A handshake between business and politics gets sweaty
Screener: Stocks outperforming their industries in the past month, with a high number of 'Buy' ratings from Forecaster
Let's jump in.
The handshakes get a little sweaty
This share price chart of Adani Enterprises and Tesla is revealing. These two companies are behemoths in their respective stock markets. Both founders are self-made entrepreneurs that did not inherit a family legacy. Both have built close political relationships - the Musk-Trump brofest is more recent, while Adani and Modi go a long way back.
Over five years, Adani Enterprises' share price jumped 1400%, while Tesla's rose 530%. Both have outsize valuations compared to the rest of their respective industries. In recent months however, their share prices have struggled.
Adani has his fingers in many pies, thanks to his close access to Indian government officials. Consider some of the projects he has underway: the new airport in Mumbai. The world's biggest copper smelter in Gujarat. A $4.1 billion housing redevelopment project in Goregaon - announced yesterday. A new solar project in Andhra Pradesh, announced today.
Tesla's founder Elon Musk is aligning himself similarly with Trump, except even more publicly. Via his cost-cutting efforts to "improve government efficiency", he is making up for lost time by quickly inserting himself into government agencies, gaining access to sensitive databases in social security, the treasury, and government contracts. After Tesla's share price fell on Tuesday, in its worst day in 2025, Trump did an impromptu ad for Musk and Tesla on the White House lawn, with the President promoting his purchase of a shiny red Tesla.
Adani has become an important driver of Modi's development agenda, to the point that the Prime Minister faced questions from the US press about the relationship, when he visited Trump in the White House in February.
Political proximity brings you powerful friends - and enemies
Musk has already got plenty of largesse from the US government over the years. He and his businesses have received at least $38 billion in government contracts, loans, subsidies and tax credits, going back at least 20 years.
Musk's strong, personal connection with Trump is new, but may already be seeing some upside. Musk, like Adani, is already benefiting from increased access to international markets, via Trump. Both Bharti Airtel and Reliance Jio today announced a team up with Musk's Starlink, which will bring the Starlink network to India, a market that till now, Musk found difficult to penetrate.
However, Musk won - and then lost - a $400 million armored vehicle contract from the US state department, a contract which was cancelled after media reports.And Musk's visibility in Trump's administration, and his public political statements, have not been good for Tesla. Tesla's sales collapsed across Europe last quarter after Musk expressed his support for extreme right wing political parties like Germany's AFD. In the US, Tesla showrooms have been attacked, and cars vandalized. The company's share price has seen a downward spiral in 2025.
Adani has benefited greatly over the years from his proximity to Modi. He has won deals from various governments in the Middle East, Africa, Australia, Nepal, Sri Lanka. But controversies have begun to haunt the magnate, especially after the US Justice department opened an investigation against him on bribery allegations.
Some deals however, are now wobbling. Kenya has cancelled its energy and airport expansion deals with Adani with after news of the US investigation, while French investor TotalEnergies has paused new investments.
Bangladesh wants to change the 25 year power deal with Adani, saying that it involves inflated prices. Sri Lanka is reviewing the wind projects. Adani Enterprises' share price as a result, has not recovered since the US Justice department opened its investigation.
On opposite sides of US India trade policy
Musk and Adani may have much in common, but they may find themselves on opposite sides in upcoming trade and tariff negotiations between US and India. One of Trump's demands has been that the Indian economy open up to US businesses. India for example, currently imposes import duties of up to 110% on US vehicle imports - which Musk has openly criticized. The US government is demanding India cut these duties to zero, which would be a big boost for Tesla.
Most of these duties and tariffs currently in place benefit India's family conglomerates, like Tata and Mahindra in the auto sector, Reliance in retail, Adani in infrastructure, and so on. Sharp tariff cuts would mean that these Indian businessmen would be forced to compete with some of the most powerful US corporations. It remains to be seen if Musk and Adani will leave their fingerprints on US-India policy - and if their influence has its limits.
Screener: Stocks outperforming their industries in the past month, with a high number of 'Buy' ratings from Forecaster
Finance and consumer electronics have the most buy calls by Forecaster
The Indian market is now more attractively valued, with the Nifty 50 sliding 9.2% over the past quarter, pushing its P/E ratio to 20, below its 1-year, 2-year, and 5-year averages. For investors eyeing opportunities, this dip could present an entry point. This screener has a helpful shortlist, showing rising stocks that have outperformed their industries in the last month, with 'Buy' ratings from Trendlyne's Forecaster.
The screener is dominated by stocks from the banking, finance, consumer electronics, iron & steel products, and realty industries. The most notable stocks present in the screener are Shriram Finance, Cholamandalam Finance, Voltas, Tata Steel, Blue Star, SBI Cards & Payment Services, Chalet Hotels, and Jindal Steel & Power.
Shriram Finance shows up in the screener after rising 18.9% over the past month. This finance stock has nine ‘Buy’ recommendations from institutional analysts according to Trendlyne’s Forecaster. Analysts remain optimistic about the company, citing its strategy to reduce cyclicality by diversifying beyond commercial vehicles (CVs) and driving strong growth in non-CV segments.Portfolio diversification could also help growth in assets under management (AUM).
Jindal Steel & Power also features in the screener after rising 7.9% over the past month. Trendlyne’s Forecaster shows four ‘Buy’ calls on this iron & steel products company. Analysts expect the ongoing Angul expansion to boost the company's crude steel capacity by 65% to 15.9 million tonnes per annum (MTPA) and finished steel capacity by 90% to 13.8 MTPA once completed. The firm’s revenue is projected to grow at a CAGR of 10.4% over FY25-26.
You can find some popular screeners here.
