SEBI's Call to Reform India's F&O Market

Mukesh Ambani's Reliance Industries has kicked off fiscal year 2026 with impressive financial results for April-June. The company achieved its highest-ever quarterly net profit of ₹30,783 crore, marking a 76.5% increase from last year. Key growth drivers include telecom, retail, and oil-to-chemical sectors, with Jio Platforms seeing a surge in subscribers. Reliance Retail expanded its customer base significantly, while the EBITDA margin improved to 21.2%. With a strong performance in a volatile global market, Ambani remains optimistic about doubling growth every few years.

The FII long-short ratio has dropped to a mere 15%, signaling a bearish market trend. Historically, when this ratio falls, the market tends to experience limited downside, suggesting that the current negativity might already be priced in. Stocks like NMDC, KIMS Hospital, and GMDC are expected to rise despite the bearish sentiment. The Nifty 50 has struggled for three weeks, hovering below critical support levels. As heavyweights announce Q1 results, market reactions could influence future trends. Investors should watch key support and resistance levels closely.

Reliance Retail has acquired the iconic home appliances brand Kelvinator, aiming to bolster its presence in India’s booming consumer durables market. Known for its innovative refrigeration solutions since the 1970s, Kelvinator will enhance Reliance’s product offerings, making quality appliances more accessible to Indian families. Isha Ambani highlighted that this acquisition aligns with their goal of introducing trusted global innovations to local consumers. With a strong retail network, Reliance aims to expand Kelvinator's reach and tap into the premium segment, providing more options for customers.

The Securities and Exchange Board of India (SEBI) is revamping mutual fund categorization to improve clarity for investors and reduce portfolio overlaps. The draft circular proposes that Asset Management Companies (AMCs) can launch a second scheme in the same category, provided the original scheme has been around for over five years and has assets exceeding ₹50,000 crore. This change aims to foster innovation while ensuring investor protection. With 20 proposals affecting various fund types, these changes reflect the growing mutual fund industry and the need for clearer regulations.

Sanjay Kumar from PNB MetLife highlights that while the RBI's August rate cut is uncertain, improving inflation and a good monsoon could change the outlook. He anticipates strong growth in the auto sector in the latter half of FY26, driven by rising disposable incomes in both rural and urban areas. The positive effects of recent income tax cuts and a robust monsoon are expected to boost vehicle sales and overall consumption. With a supportive economic environment, a recovery in various sectors, including discretionary spending, seems imminent, paving the way for better earnings and market performance.

In today's tough market, private-equity firms are turning to continuation funds, allowing investors to cash out while retaining ownership of top-performing companies. Real Chemistry's recent sale to New Mountain Capital exemplifies this trend, with about 80% of investors opting to cash out, reaping significant returns. Continuation funds are gaining popularity, accounting for a record portion of private-equity exits. While these funds help provide liquidity, they are also attracting attention as firms seek to hold onto their best assets instead of selling. This shift reflects the evolving landscape of private equity in challenging economic times.

Nurses in Maharashtra have gone on an indefinite strike, impacting services in Mumbai's government hospitals. With over 25,000 nurses participating, major surgeries are postponed, and only emergency cases are being handled by nursing students and doctors. The Maharashtra State Nurses Association is demanding better pay, job security, and staffing improvements. Hospitals are struggling to manage the situation, prompting hospital deans to hold urgent meetings with officials. While the health minister promises discussions, the nurses remain steadfast, insisting on their demands being met before calling off the strike.

Economists are slightly more optimistic about the U.S. economy, expecting stronger growth and job creation while lowering recession risks and inflation forecasts. This change follows the easing of tariff threats by President Trump, which had previously clouded economic sentiment. Job growth has improved, with unemployment dipping recently. However, concerns remain due to trade uncertainties and potential inflation from tariffs. While the labor market outlook is recovering, immigration changes may offset some economic gains. Overall, the economy shows resilience but remains cautious.

On July 18, Indian markets are set for a positive start, tracking GIFT Nifty trading at 25,205.50. After a recent dip, where the Sensex fell by 375.24 points and Nifty by 100.60 points due to selling in IT and banking sectors, the broader indices showed resilience. Asian stocks are rising, driven by strong economic data from the US, while the S&P 500 and Nasdaq hit record highs. Foreign institutional investors have been net sellers, while domestic investors continue to buy. Today's market holds promise for traders, with positive global cues suggesting a potentially profitable day ahead.

PVR INOX Ltd shares fell after Karnataka proposed a Rs 200 cap on movie ticket prices, affecting all theatres in the state. This rule could significantly lower ticket revenue, impacting PVR-INOX's overall earnings. Karnataka is a crucial market for the company, accounting for 12.3% of its screens and contributing significantly to Hindi box office collections. If implemented, the cap could hinder franchise expansion and make profitability challenging, especially in premium formats. Analysts are watching the situation closely, maintaining a cautious outlook on the company's stock.

Monika Alcobev, a Mumbai-based liquor importer, has seen a strong response to its IPO, being 1.51 times subscribed on the second day of bidding. The company aims to raise Rs 165.63 crore by offering 47.91 lakh fresh shares and selling 10 lakh shares from existing shareholders. The price range for shares is set between Rs 271-286. Non-institutional investors are particularly enthusiastic, with their bids oversubscribed 2.95 times. Funds raised will support working capital and debt repayment, while the firm holds exclusive rights to distribute over 70 global liquor brands in India.

The Securities and Exchange Board of India (SEBI) is set to simplify mutual fund classifications, helping investors better understand their options. Scheduled for release this week, the draft aims to make schemes more intuitive, minimizing the risk of mis-selling and ensuring that funds remain "true to label." As India's mutual fund market continues to grow, with assets surpassing Rs 74 lakh crore, this initiative will empower more individuals to participate in investing. By reviewing and enhancing scheme norms, SEBI aims to create a more accessible investment landscape for all.

In June, domestic investors showed decreased interest in thematic and sectoral funds, with net inflows dropping to Rs 470 crore, per Elara Capital's report. Manufacturing-themed funds experienced outflows for the seventh month, while Energy funds saw a significant Rs 740 crore outflow, the highest in four years. Despite fluctuations, thematic funds had a total net inflow of Rs 64,488 crore over the past year. The top 10 funds accounted for nearly half of June's inflows, with the Parag Parikh Flexi Cap Fund leading the way. Overall, mutual fund inflows bounced back to Rs 23,500 crore from Rs 19,000 crore in May, signaling a recovery.

June saw a robust participation of mutual funds in IPO anchor placements, with investments surpassing Rs 2,688 crore in five out of eight IPOs. Notable contributions came from funds like Motilal Oswal, Axis, and SBI, indicating strong confidence in the market. Major IPOs like HDB Financial Services and Kalpataru Projects attracted significant investments, showcasing mutual funds' strategic role in India's evolving investment landscape. However, three IPOs saw no mutual fund participation, highlighting selective investment strategies.

Gold prices saw a slight increase due to new tariffs imposed by President Trump, but a strong dollar limited gains. Spot gold rose to $3,332.73 per ounce, while the Indian rupee fell to ₹85.89 against the US dollar. Trump’s tariffs, especially a significant 35% on Canadian imports, raised concerns globally, impacting investor sentiment. Despite these tensions, India is progressing towards a trade agreement with the US, aiming for an interim deal by September or October. Ongoing negotiations focus on key sectors like agriculture and automobiles, reflecting India's proactive approach amidst global trade challenges.

OpenAI CEO Sam Altman recently shared his optimistic view on AI's impact on work and creativity. He believes that while jobs will evolve, the human desire to create and connect will persist. AI is expected to enhance our capabilities, allowing us to achieve more and find deeper meaning in our work. Altman emphasizes that the future of work won't be a competition between humans and AI but rather a partnership that opens up new possibilities. He reminds us that human ambition is limitless, ensuring that our quest for creativity and purpose remains strong.

Industrialist Anand Mahindra recently shared valuable insights from his 44 years of experience, resonating deeply with social media users. In a post on X, he reminded people facing challenges that tough times are temporary and will eventually pass. Mahindra emphasized the importance of resilience and focus during stressful moments, encouraging individuals to trust in the process of change. His comforting words garnered significant attention online, with many expressing gratitude for his perspective, highlighting the need for hope and reminders that storms eventually clear.

Silver has always been valued, but its role has evolved, as it now serves both as a precious metal and an industrial asset. While silver-focused investments like mutual funds are gaining traction, historical data shows that silver underperforms compared to gold and equities in terms of long-term returns. It also introduces volatility and does not act as a reliable crisis hedge. Therefore, for investors seeking stability and consistent returns, silver may not be a wise core portfolio asset, although it may have tactical appeal in certain market conditions.