OMKARA CAPITAL — DAILY NEWSLETTER: 20th August 2026
Speed thrills, but kills as well.
A Complicated Moment for the U.S.
Mr. Trump appears to be facing several mounting challenges at once. The first is the uncertainty around global tariffs. What began as an aggressive policy experiment has yet to deliver a durable outcome. We have seen threats, reversals, refund discussions, court challenges, country-by-country reductions, and continuing negotiations—but very little that looks concrete or settled.
The second challenge is Iran. The assumption seemed to be that Iran could be pressured quickly, almost like another Venezuela. Instead, the situation has drawn wider global scrutiny, weakened political support, and delivered little of what was expected in a matter of days.
The Debt Burden and Market Response
For a country that remains a global leader in AI, semiconductors, and advanced technology, the debt picture is hard to ignore. U.S. government debt is now around $40 trillion, having roughly doubled over the past decade.
The latest Treasury announcement on larger debt buybacks needs to be viewed in that context. In simple terms, the government is running large deficits, buying back old bonds, and issuing even more new debt. That is debt reshuffling, not debt reduction.
Markets understand the signal: larger deficits, rising debt, and an attempt to manage yields through financial repression rather than through genuine fiscal discipline. The reaction has been visible across asset classes, with the U.S. Dollar Index weakening,
Bitcoin rising sharply, gold and silver gaining, and the dollar falling. Instead of addressing the core issue—higher interest rates driven by relentless spending and a swelling national debt—the Treasury appears to be relying on financial engineering to suppress yields.
India: A Market Obsessed With Supply
In India, the market conversation is increasingly dominated by QIPs, IPOs, fundraising, block deals, and more supply. It is a different kind of frenzy. Fundamentals, promoter quality, and balance-sheet strength often seem secondary. The main excitement is around whether a stock can rise 20%, 30%, 50%, or even 100% within a few days.
We do not want to be part of that herd. The risks are high, and more importantly, we do not have a clear edge—whether through large pre-IPO allocations or access to companies with durable structural characteristics. We have seen enough examples in the past where early enthusiasm faded within months or years. Let others participate in that style if they wish; our approach remains different.
Our Focus
We are keeping our heads down and studying harder. The questions we are asking are simple but important:
• How can we make the portfolio stronger?
• Which stocks should be reshuffled?
• Where can we identify structural growth?
• How do we make every effort to avoid permanent loss of capital?
Speed thrills, but kills as well.
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.
