Cheaper—or just less expensive?

A market correction often sparks the same question on Dalal Street: Are stocks finally cheap? The recent sell-off, triggered by rising West Asia tensions, surging crude prices and persistent foreign outflows, has cooled some of the market’s froth. But a closer look suggests valuations are only moderating, not exactly bargains yet.

A Mint analysis of more than 3,400 BSE companies shows that the share of stocks trading above 80X earnings has fallen from about 14.6% at the market peak to around 11% now. More companies have slipped into lower valuation brackets, offering some relief to investors.

Large caps appear relatively comfortable, with the BSE LargeCap index trading at about 22.7x earnings, slightly below its five-year average. Small caps have also seen a sharper reset. But mid-caps remain expensive, with valuations still hovering near 29x.

So what does this mean for investors? The correction has made India more investable—but not necessarily cheap. The country continues to trade at a hefty premium compared with most emerging markets. Read the full story by Mayur Bhalerao.

In today’s edition of Top of the Morning:

• War clouds India’s IPO market
• The new luxury divide in India
• The long shadow of Hormuz

THE MAIN STUFF

Press Note 3 gets a tweak: Remember the tough FDI rule India introduced during the pandemic to keep opportunistic takeovers at bay? That was Press Note 3, which required government approval for investments from countries sharing India’s land borders, mainly aimed at China.

Now, the government has slightly loosened the screws. Investments with less than 10% ownership from land-border countries can enter through the automatic route, provided investors don’t seek management control or board seats.

Will this reopen the door to global capital with Chinese links, or remain a cautious half-step? Read on.

IPO boom hits a pause: India’s red-hot IPO market may be catching its breath. With an escalating Iran war rattling global markets and crude oil prices rising, several firms are choosing to delay their listings and wait for calmer conditions.

Benchmark indices have already slipped about 4% since the conflict began, while trading volumes have cooled and investor appetite has weakened. Even IPO returns reflect the mood, average listing gains in 2026 are barely 0.3%, far below the blockbuster debut premiums seen during the 2024 boom.

Is the IPO frenzy over? Not quite. Dealmakers say the pipeline remains strong, but companies may need more realistic valuations and stronger fundamentals to win investor confidence. Read more.

NSE IPO gears up: After years of delay, the National Stock Exchange’s long-awaited IPO is finally gathering momentum. The exchange has appointed 20 merchant bankers, including global giants and leading domestic firms, to manage what could become one of India’s biggest listings.

The potential offer, estimated at $1.5–2.5 billion may involve selling about 4–4.5% stake. Lead bankers will soon be chosen to steer pricing, marketing and investor outreach.

Luxury’s two-speed story: A stroll through India’s luxury malls once meant packed boutiques and endless queues. But the mood is shifting.

While ultra-luxury brands continue to thrive, aspirational labels such as Gucci and Louis Vuitton are seeing demand soften as cautious consumers cut back.

Rising prices, a weaker rupee and economic uncertainty are nudging shoppers to rethink big-ticket indulgences, or even shop abroad. Meanwhile, India’s wealthiest buyers are leaning toward heritage, craftsmanship and “timeless” luxury.

India’s luxury boom is not really fading, but simply splitting into two different worlds of aspirational luxury slowing down and ultra-luxury still racing ahead.

The Hormuz effect

Just weeks after celebrating a trade breakthrough with the US, India Inc. faces a fresh storm, this time from West Asia.

Iran’s closure of the Strait of Hormuz, a critical route carrying nearly 15% of global oil and 20% of gas, has sent energy markets into turmoil. Crude oil prices are climbing, supply chains are rattling, and industries—from fertilisers to textiles—are already feeling the strain.

Even if the conflict ends soon, restarting production and logistics could take weeks. How long will the blockade last? If it drags on, the shock could ripple through inflation, trade and growth, not just in India, but across the global economy. Read on.

NEWS IN NUMBERS

1,600: The number of employees Atlassian plans to lay off, about 10% of its global workforce, to self‑fund AI and enterprise sales investments and strengthen its financial profile.

£210,000: The annual contract amount secured by Sophie Devine and Beth Mooney in the inaugural Hundred Women’s competition auction for the 2026 season.

₹411 crore: The value of projects won by Enviro Infra Engineers from Bihar Urban Infrastructure Development Corporation Ltd. under AMRUT 2.0.

$11.3 billion: The reported cost of the first six days of the war against Iran, not including extra expenses for prior troop and equipment deployments.

88: The number of recently listed companies whose pre‑listing investor lock‑in periods end between 11 March and 29 June 2026, potentially freeing shares worth nearly $72 billion.

16: The number of major trading partners, including India, targeted in the Trump administration’s new Section 301 investigation into excess industrial capacity and potential unfair trade practices.

50 TB: The size of sensitive data Iran-linked Handala claims to have stolen from Michigan‑based medical device maker Stryker in a cyberattack it says is retaliation for a school strike in Minab, Iran.

AROUND THE WORLD

• Central banks could tilt hawkish as Iran war fuels inflation risk
• The AI trade that’s separating Wall Street’s winners and losers
• Why investors aren’t fleeing to safe-haven stocks
• Liquefied natural gas: The overlooked economic chokepoint
• The Strait of Hormuz could take weeks—even months—to reopen

CHART OF THE DAY

Searches for ‘induction stove’ and ‘induction cooktop’ have surged in India amid fears of an LPG shortage stemming from an escalating Iran war that's closed the Strait of Hormuz — India's de facto gas pipeline.

LOUNGE RECOMMENDS

5 summer recipes that don't need you to switch on the gas: No cooking gas? No problem. You know there is so much that you can cook without it. Strange times, but well, here we are. But, it's summer already, which means it's the best time to whip up salads, cold raitas and raw chutneys, and if you have extra patience, some frozen dessert as well. Read more.

WHAT THE FACT

The start of ‘black lives matter’: On this day in 2020, Breonna Taylor, a 26-year-old emergency medical technician, was fatally shot when Louisville Metro Police Department officers forced entry into her apartment during a botched late-night raid in Louisville. Her death ignited widespread protests across the United States and beyond, becoming a rallying point for the Black Lives Matter movement and intensifying calls for police accountability and reform.

Edited by Alokesh Bhattacharyya. Produced by Tushar Deep Singh.

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