OMKARA CAPITAL — DAILY NEWSLETTER: 19th August 2026
A Note on Re-Rating and Narratives
"The challenge is not finding the next hundred ideas. It is having conviction to hold the right 10 to 15 ideas through periods of volatility, anxiety, and excitement as well. "
Global Market Update
Headlines from the US remain far from reassuring. The war of words between the US and Iran continues, with the UAE calling for a halt to all activities, trade exchanges, and financial transactions with Iran following the missile attack.
Trump has taken a hard line on Iran as the Hormuz standoff drags on, saying there are no talks or conversations underway, or scheduled, with the Islamic Republic of Iran.
Meanwhile, the US 30-year Treasury yield has touched a 19-year high, last seen in June 2007. Brent crude has risen for a fourth consecutive day, though the move has not been excessive.
Funny is that now USA & Canada has a deal. Same Canada which was bombarded by words by Mr Trump for so many times. What a man !!!
Encouragingly, global markets are not reacting severely to major headlines or negative news. That resilience is good to see.
India Market View
In India, the market conversation is centred on fundraising, conference calls, plant visits, IPOs, QIPs, and individual opportunities across the mid- and small-cap space.
At the index level, consolidation continues, which we view as a healthy sign. Stock pickers remain keen to find the next multibagger, and unlike earlier periods, they appear less distracted by Trump-related headlines. FIIs also bought in the cash market yesterday.
India’s economic data remains clearly strong, and when coupled with earnings momentum, it gives us comfort on the broader market setup.
A Note on Re-Rating and Narratives
One thing we have noticed is that whenever a sector gets re-rated, social media quickly starts searching for the next leader. Everyone begins looking for the next Sansera, Craftsman, Happy Forging, SJS, or SPR in other small- and mid-cap names.
Many such names have come to us as well for analysis and potential investment. However, the truth is simple: the next Sansera may be Sansera itself, and the next Happy Forging may be Happy Forging itself.
If an excel comparison of PE alone could identify the next market leader, everyone would already be wealthy. Investors should avoid chasing ideas built only on narratives.
Portfolio Work and Updates
Our team remains busy with conferences and plant visits, while also staying focused on strengthening the portfolios.
• We have shared nearly four new stock ideas so far.
• We have also removed four names from the portfolios.
• A summary update will be shared soon.
• The data room and basket have both been updated for everyone’s reference.
We are continuing to review our models and portfolio holdings to determine whether more names should be removed.
Investment Discipline
One thing is clear from our learnings: no mediocre idea should come from Omkara. We would rather wait patiently than rush into narratives or compromise on quality. The first rule is always to avoid losing money.
Warm regards,
Omkara Capital Private Limited
www.omkaracapital.in
Disclaimer: This newsletter is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.
