Valuations

Scepticism over the huge valuations of Big AI players like Anthropic, OpenAI and Nvidia may have grown amid warnings from financial risk trackers, but a scenario exists to justify them. How dreamy it is remains unclear, though.

Zepto has held off its public share offer. Earlier listings—think Eternal, Nykaa and Delhivery—were judged by their reach and growth, with private valuations setting offer prices. But market investors now want platforms to show paths to profitability.

Anand Rathi Wealth's client retention and AUM growth remain robust despite margin pressure. But with TER compression ahead and the stock up 35% this year, valuations appear demanding.

Global investment trends show a bearish phase for equities and a shift in focus from semiconductor stocks. Foreign portfolio investors are selling in India despite strong fundamentals. This situation highlights the need for cautious investment amidst rising interest rates and geopolitical tensions.

Vinay Paharia, CIO, PGIM India Mutual Fund, cautioned that stock investment horizons are shrinking, driven by recent short-term gains. This approach runs counter to equity investing. Investors must differentiate between short-term stock performance and underlying business performance.

The West Asia war-led correction reduced some excesses, but valuations have turned expensive again.

According to Bloomberg, Foreign portfolio investors have pulled nearly $23.4 billion from Indian equities so far this year. South Korea and Taiwan, which had become favourite markets for global investors riding the artificial intelligence and semiconductor boom, have started seeing large outflows.

Wipro's Q4 performance fell short due to macro headwinds and client issues, with a revenue growth of just 0.2%. Its Q1FY27 outlook is negative, suggesting continued challenges, while the company also announced a significant buyback and dividend for shareholders.