OMKARA CAPITAL – DAILY NEWSLETTER (9th June, 2026)
BIG GOVERNMENT MEASURES NEVER GO WASTED
HEADLINES
• Iran announces ‘end of military operations’ against Israel, as of now
• IMP RBI update for banks: Terms of FCNR-B and ECB allow leverage that can boost forex inflows.
STOCKS IN NEWS
• HSBC initiate coverage on Belrise with a Buy and TP of Rs 270
• Telecom: Bombay HC sets aside DoT’s demand on One-Time Spectrum Charge
• Panacea Biotec: launches DENSTAR Project (Phase 3 trials in Africa). Co is expanding dengue TAM from India to Europe + Africa
MARKET COMMENTARY: BIG GOVERNMENT MEASURES NEVER GO WASTED
One thing I have learnt is that big government measures never go wasted. They may take time, but they invariably make an impact. We saw the same with GST rate cuts, income rate tax cuts on the earnings of many cos and demand revival in the auto sector.
The market is now focused only on war and AI trades, and has completely ignored the RBI measures, which are very important and meaningful. Remember this is a big measure from RBI after nearly 12 years or so. Even yesterday – we had an imp update for banks from RBI which allows leverage that can boost forex inflows. Jefferies estimates that with 7-10x leverage and spread of 1.5-2%, customers can generate 17-27% US$-IRR annually over 3-5 years. Under 2013 scheme, Indian banks mobilised US$34bn through FCNR-B and ECBs that was 12% of forex reserves and 3% of domestic deposits. With current forex reserves of $682bn, substantial flows can support domestic liquidity, forex reserves and exchange rate. Jefferies expects that India could see inflows of $50-70bn.
One thing is for sure that India is out of flavour right now with no interest from FIIs. Mr Akash Prakash says rightly – “The mood remains sombre on India, even bleak. Zero interest. Even 6,000 bps of underperformance vs EM equities over the last 12 months has failed to stir interest. India has now underperformed EM equities even over a 10-year horizon."
Well – my belief is that the market surprises you the most when you expect the least. Everyone has given up on Trump, and even on Indian government. We will not even see it coming when good news hits on the war front; and to be fair, the RBI has done a superb job — that too will be recognised soon, when the INR strengthens.
This is the time to simply hold and stay calm, as the trend is not clear amid so much noise and news. We are investing regularly from the fund with risk management in mind, and preparing for the future. We neither want nor expect daily gains; we want to position well for the future, when the noise and news settle down.
PS: Plz check our new site: omkaracapital.in with improved & sleek data room and FORUM (for new stock ideas discussion) for TRANSPARENCY & KNOWLEDGE SHARING.
Warm regards,
Omkara Capital Private Limited, India
www.omkaracapital.in
Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
