Opening Recap
Market Pulse: US equity futures edged higher in a tug-of-war between tech strength and financials lagging ahead of the open. Oil held yesterday’s gains, the dollar shrugged off midweek softness, and bond yields ticked up—central banks aren’t forgetting inflation.
Key Movers: “JDC (TSE:1887) Returns to Profitability, Challenging Narratives on Dividend and Growth Sustainability” (Yahoo Entertainment) stunned skeptics with a Q3 profit swing. “Infosys shares in focus after Q2 PAT jumps 13% YoY, ADRs fall 2%” (The Times of India) saw profit-taking despite double-digit PAT growth.
Macro & Politics: A divided Diet threatens to stall PM Takaichi’s reforms, capping stimulus even as exporters eye a weaker yen (“Analysis-Japan’s fractured politics…” via Yahoo Entertainment). In India, Raheja’s GST 2.0 pitch could spark retail and auto demand—but loopholes and compliance risks persist (“GST 2.0 to drive India’s next consumption boom…” The Times of India).
What’s Next: All eyes shift to RIL Q2 results for a post-hit rebound. Also watch Whitbread plc’s intrinsic value debate and US housing starts & Michigan survey prints for fresh Fed cues.
Market Commentary
Everyone’s overlooking that bond yields ticked higher yesterday, yet most commentary stays stuck on oil and equity futures. That yield uptick isn’t trivial—markets are sniffing inflation, and companies burning cash like those tech darlings will face a damn rougher refinancing environment. Check out “JDC (TSE:1887) Returns to Profitability” (Yahoo Entertainment): they leaned on cost discipline instead of chasing aggressive top-line growth. Profit stories backed by real cash flow will be the only ones standing when rates bite.
Meanwhile, compare the political gridlock in Japan flagged by “Analysis-Japan’s fractured politics could ensnarl Takaichi’s economic plans” (Yahoo Entertainment) with Infosys’s ADR discount (The Times of India). Exporters might rally on a softer yen, but domestic paralysis and multiple compression show investors prefer tangible free cash flow now over vague reform promises. This isn’t a flimsy link—it’s the new market playbook.
Actionable takeaway: pivot toward firms generating cash without relying on government backstops. Track JDC’s free-cash-flow yield versus peers still burning cash on expansion, and watch RIL Q2 results for the next directional clue. Steer clear of crowded trades tied to lofty multiples and political half-measures—moonshots without clear runway never end well. Let the data guide your capital.
📈 Breaking Financial News
Nestle India Q2 Review – Topline Spurt Excites; Margins Still Subdued; Valuation Lofty, Says Systematix
We raise our FY26E-FY28E revenue estimates for Nestle India Ltd. by 1% but lower PAT estimates by 6–7% to factor in a protracted period of subdued margins, and build FY25-FY28E revenue/PAT CAGR of 10%/9%. We maintain a Hold rating on Nestle; we roll over valuation assumptions amid elevated pricing and margin pressure.
Shark Tank judge Peyush Bansal nears billionaire status with Lenskart IPO
Peyush Bansal's Lenskart is preparing for a major stock market debut in Mumbai. The eyewear giant aims for a valuation of $9 billion. This move signals a return of investor confidence in founder-led Indian startups. Lenskart's innovative approach to manufacturing and retail integration has driven strong institutional interest ahead of the float.
JDC (TSE:1887) Returns to Profitability, Challenging Narratives on Dividend and Growth Sustainability
JDC recently turned profitable, with its net profit margin improving over the past year. After months of concerns over dividend cuts and growth exhaustion, the company swung back to profit in Q3. The margin improvement stems from strict cost discipline rather than aggressive top-line gains, which undercuts bearish narratives around its payout sustainability.
Whitbread plc's (LON:WTB) Intrinsic Value Is Potentially 24% Below Its Share Price
Using a two-stage free cash flow to equity model, Whitbread’s fair value estimate is £21.91, while the current share price suggests a 24% premium to intrinsic value. The analysis highlights potential overvaluation risks if growth projections disappoint amid a challenging consumer environment.
Analysis-Japan's fractured politics could ensnarl Takaichi's economic plans
After a volatile week, Sanae Takaichi may have enough support to lead the LDP, but a divided Diet risks gridlock that could stall pro-business reforms. Limited stimulus and structural domestic demand issues may cap growth, even as exporters seek relief in a weaker yen.
White House Insider Buck Sexton: “Trump's Next Move Will Shock the World”
Dramatically increase U.S. power… and trigger a massive American market boom the likes of which we haven't seen in 75 years. Get the details here now.
🔍 Market Analysis & Insights
We Like These Underlying Return On Capital Trends At PLB Engineering Berhad (KLSE:PLB)
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? This report delves into ROCE metrics and quality of earnings to identify durable competitive advantages in the Malaysian engineering sector.
GST 2.0 to drive India’s next consumption boom: Nitin Raheja
India's consumption is showing early signs of revival, with analysts optimistic about a broader demand uptick under GST 2.0. The government's focus on boosting the lower end of the economy is yielding results, particularly benefiting discretionary spending and rural penetration.
Canara HSBC Life shares list flat at Rs 106 on BSE, NSE
Canara HSBC Life Insurance debuted flat on exchanges at Rs 106 per share, following a ₹2,517 crore offer for sale. The IPO saw strong institutional demand, while retail and HNI participation was moderate, raising questions about near-term trading interest.
Is Kimly Limited's (Catalist:1D0) Recent Stock Performance Influenced By Its Financials In Any Way?
Kimly's stock is up 7.1% over the past three months. We examine whether recent gains reflect fundamental improvements or if they’re simply momentum chasing. The analysis covers revenue growth, margin trends, and balance-sheet shifts.
LTIMindtree shares in focus after Q2 PAT rises 12% YoY. Should you buy now?
LTIMindtree posted a 12% YoY rise in Q2 FY26 PAT to ₹1,401 crore, driven by steady momentum and cost optimizations. Revenue grew 10% YoY to ₹10,394 crore. Brokerages Nuvama and Motilal Oswal maintain Buy ratings, citing strong earnings visibility.
Get out of “The World's Most Crowded Trade” Now
Megacap tech stocks—like Nvidia—are under threat. 78% of fund managers foresee an event in September that could kill this trade. Watch Futurist Eric Fry’s “Sell This, Buy That” for 7 alternative plays to protect yourself. Get all the analysis, names and tickers FREE right here.
💰 Investment Opportunities
Sime Darby Property Berhad (KLSE:SIMEPROP) sheds 4.1% this week, as yearly returns fall more in line with earnings growth
It hasn't been the best quarter for Sime Darby Property shareholders, as the share price decline aligns returns more closely with underlying earnings growth. This pullback could offer a value entry point if topline headwinds ease.
Adani bull GQG buys more in 4 stocks, LIC stays the course but FIIs trim
After Sebi’s clean chit, GQG Partners increased stakes in four Adani Group companies, signaling growing conviction. State-owned LIC maintained its holdings, while FIIs tactically trimmed exposure amid broader market caution.
RIL Q2 results today: 10 things to track as investors nurse Rs 1.8 lakh crore loss after Q1
Reliance Industries will announce its September quarter results today. Investors will watch revenue growth, refining margins, and telecom subscriber metrics closely after the previous quarter’s downturn.
13 Million Reasons Why David Ellison Should Say No To Warner Bros. Discovery
Paramount Skydance’s bid for Warner Bros. Discovery faces scrutiny after a Netflix rom-com’s outperformance versus Superman shows. This raises questions about scale versus quality in major media mergers.
Infosys shares in focus after Q2 PAT jumps 13% YoY, ADRs fall 2%
Infosys reported a 13% YoY increase in net profit to ₹7,364 crore for Q2 FY26, with revenue rising 9% YoY to ₹44,490 crore. An interim dividend of ₹23 per share was declared, and FY26 revenue guidance was revised upwards amid multiple compression.
$100 Oil Coming?
CNN/WSJ: Oil prices exploded 6–8% on the Iran crisis. Analysts warn $100/barrel if the Strait of Hormuz is disrupted. While oil stocks swing wildly, there's a steadier way to profit. Marc shows you how.
