OMKARA CAPITAL – DAILY NEWSLETTER (21st July 2026)

CLSA BANKING ANALYST: Microfinance: Good time to enter - cycle turning, weak cohorts cleaned out, yield hikes taken, credit costs will undershoot steady state.

Stop wasting your time watching Nifty. The trend has changed for India & stay stock-specific

First, I'm sorry that I could not write the newsletter for the last few days, as I've been traveling and busy building some systems for all of us. I will back in Mumbai tomorrow and promise that will stay more active, but surely controlled.

I hear a lot of people cribbing about the Nifty being stuck around 24,000 levels but look around. I think in the last one to two months, India has outperformed every other market in the world. FIIs are slowly turning their positions. I read a lot of strategy notes where they are now telling to invest in Indian markets after burning their money, if I can say, in markets like Taiwan and Korea.

Stocks like ServiceNow, Oracle, Scandisk, Marvell, Hynix, Palantir, SpaceX, Intel, Micron, Samsung are down anywhere between 30-60% from the recent highs. Even the index of a few countries has corrected by 25% to 30% from the recent highs. So, I will take the consolidation happening in India, even at the Nifty level, with both the hands, and will be very, very happy.

We are stock-specific investors with an eye on a lot of things happening around. The results season has been solid. Yes, there is volatility, which is part of the earnings season. Yes, there will be some misses as well, but thankfully our direction, our positioning is correct in the stocks we own personally or in the fund or what we have advised.

A statement coming from RBI that they have received nearly $20 billion via FCNR and ECB borrowing route in last 1 month and 10 days approx. Still, we have over two months till the end of September for the scheme. The money flows into these schemes could surpass the best estimates on the street. This is very, very important news.

NBFC’s, cement, manufacturing, and power sector are coming up with solid results as of now, and we believe repeatedly that the trend for manufacturing, financials, especially in NBFC's, pharma, and healthcare, will continue.

During the earnings season, we don't want to be adventurous. I think I have mentioned this again on this forum, that it is better to focus on earnings & concalls and not be be adventurous. We put our energy, eyes, and ears on what the management has been saying and test our hypothesis on the stocks we are holding.

Some surprises have started coming from the chemical sector, and that will be one sector which we are watching closely as well: whether the cycle has started turning or not. We hold positions in companies which you all are aware of. This could be an important quarter for the chemical sector.

We will continue to share important updates on the concalls, earnings, brokerages' reaction on the stocks we own and have advised all of you.

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.