OMKARA CAPITAL — DAILY NEWSLETTER: 25th August 2026
Risk Management Comes First
Consistency Over Intensity
Market narratives can change quickly. Until recently, the conversation was dominated by aerospace, defense, semiconductors, and power storage. Today, attention has shifted toward sugar, rice, fertilizers, gold, silver, mining stocks, and Bitcoin. That is the nature of markets—money moves fast, and enthusiasm often follows price action.
Capital Raising Euphoria
Fundraising activity is running at a remarkable pace. Indian companies are on track for their biggest monthly capital raise on record, with nearly USD 10 billion raised so far in August. Investor appetite remains strong: a recent IPO, Tempsens Instruments, reportedly received the third-highest number of applications ever recorded for an IPO.
The enthusiasm is also visible in stocks and sectors that were previously ignored. Domestic institutional investors are showing renewed interest in former laggards. For example, DIIs now own more of Adani Enterprises than FIIs do—for the first time, at least since 2009, based on Q1 FY27 data.
When Euphoria Ignores Risk
Across social media, many small companies are being discussed as if they are established compounders. In some cases, businesses earning less than Rs 10–20 crore in profit are being valued at 50x earnings or more, despite limited operating history, inconsistent performance, or unproven durability.
This is what happens when markets are in a super mood: negatives get ignored. Concerns around war, Mr. Trump, and even the U.S. 30-year Treasury yield touching 5.33%—a 19-year high—are being brushed aside. But history keeps reminding us that the biggest mistakes are often made during euphoric phases.
Risk Management Comes First
Do what suits your investing style, but never forget the first rule of investing: risk management. Euphoria creates opportunities, but it also creates accidents. Great businesses can survive and compound through cycles, while many market narratives eventually fade. A lot of accidents will happen going ahead for sure amid this euphoria. Plz bach ke rehna.
Recent examples are a useful reminder. Stocks such as BLS International have corrected from around Rs 400 to Rs 242, while Zaggle has fallen from around Rs 400 to Rs 190. There are many similar cases even in this market.
Our Approach
We are comfortable with the stocks we own and have further diversified after the last quarter. We remain in no rush to chase narratives, SMEs, micro-caps, or momentum-driven ideas without substance. Our focus is clear:
• Size and scalability
• Consistency over intensity
• Structural growth stories
• Strong management teams worthy of long-term capital
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.
