Sector Updates

Top Conviction Ideas - Metals & Mining - Hindalco Industries Ltd; National Aluminium Company Ltd; APL Apollo tubes.

Potential financing opportunity in affordable housing segment is est. INR 45 tn. by 2030 which is 3.5x increase from existing loan volume of INR 13 tn. driven by PMAY-2.0, interest rate subsidies, favorable Govt. policies like RERA, rapid urbanization.

In Q1 FY26, the Indian IT sector delivered a soft performance, with Tier-2 firms like Coforge outperforming large players in both revenue growth and execution. Largecap companies such as TCS, Infosys, and HCLTech were impacted by macroeconomic uncertainty that delayed discretionary spending, leading to muted growth. However, strong deal wins especially at Infosys and HCLTech indicates improvement in demand, prompting both firms to raise the lower end of their FY26 revenue guidance. Tier-2 players meanwhile maintained their strong growth outlooks. GenAI, cloud, and digital transformation remained key drivers of interest but monetization continues to lag as clients focus on pilots rather than scaled adoption. The absence...

Top Conviction Ideas - Banks, Financial Services and Insurance (BFSI): HDFC Bank; Kotak Mahindra Bank; SBI; City Union Bank; Bajaj Finance Ltd; Shriram Finance Ltd

Top Conviction Ideas - UltraTech Cement Ltd, Ambuja Cements Ltd, Dalmia Bharat Ltd, JK Lakshmi Cement

Indian HRC: Indian HRC prices increased by 1.0% WoW to Rs 50,200/tonne, as major steel manufacturers have raised their prices for August sale, supported by improved global market sentiments. Billet-Ex-Raipur: Billet prices decreased by 0.8% WoW to Rs 37,500/tonne, as market sentiments continue to remain subdued amid...

Trump's 50% Tariff on India Over Russia Ties Alarms Economy

During Jul-25, Indian steel prices declined 2% MoM to Rs49,700/tonne, while Chinese steel rose by 10% MoM to $490/tonne. Coking coal prices increased by 9% MoM to $148/tonne, driven by production cuts and a safety crackdown in China. In Jun-25, Indian steel production rose by 1% MoM to 13.7 mn tonnes. Estimated Chinese steel output declined by 4% MoM to 83 mn tonnes, while global steel production contracted by 4% MoM to 151 mn tonnes. Chinese steel exports fell by 8% MoM but rose 11% YoY to 9.6mn tonnes, amid growing speculation of production cuts by Chinese mills. Additionally, USA imposed steep tariffs on imports...

RBI Monetary Policy Update August 46 Meeting The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, kept the policy repo rate unchanged at 5.5% and maintained a neutral stance. The central bank highlighted a benign inflation outlook, strong...

The Monetary Policy Committee (MPC) maintained the policy repo rate at 5.50% and continued with its neutral stance. Having reduced the policy rate by 100 bps since February 2025, the MPC chose to wait for further transmission of these front-loaded cuts to credit markets and the broader economy. A CRR cut announced in the previous policy will be implemented in a staggered manner starting September, aimed at supporting liquidity. Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) remains unchanged at 5.25%, while the marginal standing facility (MSF) rate and the Bank Rate remain at 5.75%. The financial position of Scheduled Commercial Banks (SCBs) and NBFCs remain healthy, supported...