More than 120 smallcap stocks delivered double-digit gains in the week gone by, marking one of the sharpest short-term rallies in the segment in recent months. The rally was broad-based, cutting across textiles, auto ancillaries, infrastructure, chemicals, consumer and capital goods.

Stocks such as VTM, Gokaldas Exports, Garware Hi-Tech Films, Faze Three and United Foodbrands surged between 35% and 45% in just five trading sessions, while several others posted weekly gains in the 20% to 30% range. Even traditionally steady names in pipes, engineering, auto components and consumer discretionary joined the rally, signalling a sharp improvement in risk appetite.

The move comes after months of relentless selling in small and midcaps, during which valuations corrected sharply despite earnings holding up in several pockets. Analysts estimate that over a third of the smallcap universe, representing nearly Rs 16 lakh crore in market capitalisation, is now trading at fair or even undervalued levels compared with historical averages.

According to Ponmudi R, CEO of Enrich Money, the overall market has entered a consolidation phase after digesting major policy triggers. “With the Union Budget 2026 and the RBI’s monetary policy decisions now largely priced in, investor focus has shifted to implementation, capex execution and the pace of actual spending,” he said, adding that sentiment remains cautiously optimistic and event-driven in the near term.

Currency movements and foreign portfolio investor flows are also playing a role. The recent recovery in the rupee from record lows, aided by the India-US trade agreement announcement, has improved near-term confidence. At the same time, easing foreign selling pressure has reduced the supply overhang that weighed heavily on smallcaps through the previous quarter.

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Arjun Guha Thakurta of Anand Rathi Wealth believes the recent correction created a disconnect between stock prices and business fundamentals. He points out that while many smallcap stocks fell sharply, earnings growth across the segment remained reasonably healthy. Much of the selling, he said, was driven by risk aversion, global uncertainty and foreign outflows rather than a collapse in underlying business performance.
“When weak hands have already sold, even modest improvements in confidence can lead to sharp recoveries, especially in segments that have underperformed for extended periods,” Thakurta said, cautioning, however, that selectivity remains crucial.
Not all experts are convinced that the rally marks the start of a sustained uptrend. Ravi Singh, Chief Research Officer at Master Capital Services, said investors should differentiate between structural stories and tactical trades.

“Smallcap companies typically operate with narrow product lines or concentrated business models. Benefits from policy changes such as lower tariffs will be meaningful only for companies with direct exposure to export-linked sectors,” he said.

Macro risks also remain on the radar. Investors are closely tracking January consumer price inflation data, which will be released using a revised base year of 2024 and is expected to offer a more accurate picture of consumption trends. Global developments, particularly geopolitical negotiations involving the US and Iran, could also inject volatility into commodity prices and risk assets if tensions escalate.

Data: Ritesh Presswala

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Agreements with the US and the European Union helped ease fears that geopolitics and tariff turbulence would continue to weigh on the $5.2 trillion market. That relief, however, has done little to offset concerns over corporate fundamentals, especially after Indian stocks posted the worst January returns among major global peers.

Earnings growth has lagged for months, the rupee has weakened, and foreign investors have treated India as a source of funding to chase artificial intelligence-driven rallies in China, Taiwan and South Korea. Adding to the gloom, Indian tech heavyweights such as Tata Consultancy Services Ltd. and Infosys Ltd. have been swept up in a global software selloff, as Anthropic’s latest AI advances threaten to disrupt traditional outsourcing business models.

“India will continue to be seen as a funding market, at least for now,” said Vivek Dhawan, a fund manager at Candriam NV. “In terms of earnings growth recovery, where we see weakness is on the software services side.”

Earnings for the MSCI India Index are projected to grow about 8.3% over the next year, trailing regional peers, according to data compiled by Bloomberg. That compares with forecast growth of roughly 16% for China, about 108% for South Korea and close to 30% for Taiwan.

The index trades at about 22 times forward earnings estimates, in-line with its long-term average. Relative to other emerging markets, however, India still trades at a premium.
The valuations are less attractive, “accounting for the growth trajectory and scope for earnings recovery, which is likely to stay selective rather than broad based,” said Ecaterina Bigos, chief investment officer Asia ex-Japan, at BNP Paribas Asset Management’s at AXA IM. The balance “points to a cautious optimism on Indian equities, with focus on strategic areas of growth for now.”

The sentiment underscores one of the most challenging periods since India emerged as a favorite among global investors betting on the world’s fastest-growing major economy and its vast domestic market. Persistent geopolitical risks and pockets of economic slowdown have dulled the appeal of Indian equities since the start of 2025.

The result was India’s worst underperformance versus emerging markets in decades last year. Foreign investors pulled a record $19 billion from local stocks even as economic growth outpaced rivals. Over the past 12 months, the MSCI India Index has gained 8%, with dollar returns eroded by rupee weakness. In contrast, the MSCI Emerging Markets Index has surged almost 38%.

To be sure, there are signs of tentative improvement. Indian equities are on track for a second straight week of foreign inflows — a streak not seen since October.

“The tariffs were hurting Indian exporters and, more importantly, significantly hurting the rupee,” said Ashish Chugh, head of global emerging-market equities at Loomis, Sayles & Co. “That created a negative feedback loop — rupee weakness led to foreigners selling equities, which led to more rupee weakness. The trade deal stops that loop and, in my view, reverses it.”

US President Donald Trump signed an executive order to eliminate a punitive 25% tariff on Indian goods imposed for the country’s purchase of Russian oil. A joint statement by both the countries showed that a so-called “reciprocal” duty on Indian goods was also cut to 18% from 25%.

The new rate offers significant relief to Indian exporters after they were tariffed at 50%, among the highest in Asia. The South Asian nation also agreed to purchase $500 billion worth of American products over five years including aircrafts, graphics processing units and energy, while promising to reduce non-tariff barriers for US companies.

The rupee now looks undervalued, with India’s real effective exchange rate near a decade low, according to Chugh. He expects macroeconomic fundamentals to remain supportive, with earnings accelerating next year after a period of subdued profit growth.

More bullish investors argue that the trade deals, combined with the recent state budget, could ignite a major rally.

“Now’s the time to buy India,” said James Thom, senior investment director of Asian equities at Aberdeen Investments, who said his Asia ex-Japan equity portfolio has been consistently overweight India. “Quality companies are well positioned for the next cycle.”

Markets initially welcomed the tariff truce, with the US cutting its levy on Indian goods to 18% from 25% — lower than for most Asian peers — while scrapping an additional 25% punitive duty linked to purchases of Russian oil. Indian stocks jumped the most in eight months after US President announced the deal, while the rupee gained 1.1% against the dollar. The longer-term impact, however, remains uncertain.

While the agreement acts as a “booster of confidence,” it does not necessarily change his view on GDP growth outlook over the next 12 months or that for equity earnings, Sanjay Mookim, JPMorgan Chase & Co.’s India strategist said in an interview with Bloomberg Television on Friday.

Roblox RBLX 2.82%increase; green up pointing triangle expects its growth to continue this year after revenue climbed in its latest quarter, boosted by higher bookings and daily active users.

The videogame company said Thursday it projects revenue up 23% to 29% this year, following 43% revenue growth in its latest quarter.

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President Donald Trump on Friday removed a video from his Truth Social account that included a racist clip depicting former President Barack Obama and former first lady Michelle Obama as apes, following intense criticism from Democrats, Republicans and civil rights leaders. Trump declined to apologize, insisting he had not viewed the full video before it was posted and blaming a staff member for the error.

The roughly 62-second video, shared late Thursday night, promoted long-debunked claims of widespread voter fraud in the 2020 presidential election. At its conclusion, the footage abruptly shifted to a brief animated segment — apparently AI-generated — showing the Obamas’ faces superimposed onto cartoon apes dancing in a jungle setting. The clip played over the 1961 song “The Lion Sleeps Tonight” by The Tokens. The segment lasted only a few seconds before the video ended.

The post remained visible for nearly 12 hours before being deleted around midday Friday, as outrage mounted. White House officials initially defended the share, describing it as part of an “internet meme” portraying Trump as the “King of the Jungle” with various Democrats depicted as animals from “The Lion King.” Press secretary Karoline Leavitt said in an early statement that the content highlighted Trump’s dominance in politics.

Bipartisan condemnation came swiftly. Sen. Tim Scott, R-S.C., the only Black Republican in the Senate, called the depiction “the most racist thing I’ve seen out of this White House.” He urged Trump to remove the post and issue an apology, emphasizing that such imagery perpetuates harmful stereotypes.

Other Republicans, including Sen. Roger Wicker, R-Miss., labeled the content “unacceptable” and “racist,” calling for its immediate removal. Democrats, including House Minority Leader Hakeem Jeffries and Sen. Cory Booker, condemned the video as a continuation of dehumanizing rhetoric directed at the nation’s first Black president and first lady.

Civil rights organizations were among the most vocal critics. The NAACP described the imagery as invoking “centuries-old racist tropes used to dehumanize Black people,” tracing the comparison of Black individuals to apes or monkeys back to the era of slavery and segregation. The Southern Poverty Law Center noted that such depictions have historically served to justify discrimination and violence.

The Obamas did not immediately comment publicly. Representatives for the former president and first lady said they were aware of the incident but declined further statement at this time.

Speaking to reporters Friday afternoon outside the White House, Trump addressed the controversy directly. Asked if he would apologize, he replied, “No, I didn’t make a mistake.” He added that he had only seen the beginning of the video before it was posted by a staffer and was unaware of the offensive ending. “It was fine until that part,” he said, referring to the main election-related content.

Trump condemned the racist clip itself when pressed further, saying, “Of course I do,” but maintained that the error lay with the staff member responsible for the post. A White House official later confirmed the video was “erroneously” shared and had been taken down.

The incident occurred during the first week of Black History Month, amplifying criticism that the imagery was particularly insensitive. Historians and scholars have long documented how portrayals of Black people as primates were weaponized during the Jim Crow era and earlier to deny humanity and justify oppression.

The video appeared to originate from a longer meme shared on X (formerly Twitter) in October by a conservative account. That original clip depicted several prominent Democrats — including Rep. Alexandria Ocasio-Cortez, former Secretary of State Hillary Clinton and others — as various animals, with Trump as a lion receiving bows from the group. Trump shared only the portion featuring the Obamas as apes.

Social media experts noted that Truth Social, Trump’s platform, has fewer content moderation controls than mainstream sites, allowing such material to spread quickly among his followers before wider scrutiny. The post garnered significant engagement before deletion, with thousands of reposts and comments.

The episode marks a rare instance of the Trump White House walking back a social media share. Previous controversies involving Trump’s posts have typically been defended or ignored rather than removed. The deletion followed pressure from within his own party, highlighting the political risk of the content amid efforts to broaden appeal.

Public reaction was swift on social media and in traditional outlets. Clips of news coverage circulated widely, with commentators from across the spectrum decrying the imagery. Some supporters dismissed the backlash as overreaction to a “meme,” while others expressed disappointment.

The timing coincides with ongoing political tensions between Trump and Obama, who has criticized the current administration on issues ranging from democracy to foreign policy. Obama has remained active in public life through his foundation and occasional speeches.

White House aides said internal reviews would be conducted to prevent similar incidents. No disciplinary action against the staffer was announced.

The controversy overshadowed other developments in the administration’s early days, including policy announcements and international engagements. It also renewed discussions about the role of social media in amplifying divisive content and the responsibilities of public figures in vetting shared material.

As of Saturday morning, no further statements had come from Trump or the White House on the matter. The deleted post’s link now redirects to a generic Truth Social page.

The incident underscores persistent racial sensitivities in American politics, particularly around depictions of Black leaders. For many observers, it served as a reminder of how historical tropes can resurface in modern digital contexts, even at the highest levels of government.

Apple’s upcoming iPhone 18 Pro Max is poised to deliver what could be the company’s most impressive battery performance yet, with rumors pointing to a battery capacity of 5,100 to 5,200 milliamp-hours and significant efficiency gains from a next-generation 2-nanometer chip, according to supply chain reports circulating in early February 2026.

The details emerged from a prominent Chinese leaker known as Digital Chat Station, who cited information from Apple’s supply chain partners. The claims were first reported by MacRumors on Feb. 6, 2026, and quickly picked up by outlets including Mashable, 9to5Mac, AppleInsider and others in the tech press. If accurate, the upgrade would build on the already class-leading battery life of the current iPhone 17 Pro Max, which has been praised for lasting through heavy use without needing a midday charge.

The iPhone 17 Pro Max features a 5,088 mAh battery in its eSIM-only configuration and approximately 4,823 mAh in models with a physical nano-SIM slot. The rumored iPhone 18 Pro Max would offer a modest increase in raw capacity — roughly 2% to 3.67% depending on the variant — but the real gains are expected to come from power efficiency improvements in Apple’s forthcoming A20 Pro processor.

The A20 Pro is anticipated to be fabricated using Taiwan Semiconductor Manufacturing Co.’s advanced 2nm process node, a step down from the 3nm technology used in the A19 Pro chip found in the iPhone 17 series. Smaller process nodes typically allow for lower power consumption at similar or higher performance levels, meaning the new chip could squeeze more runtime out of every milliamp-hour of battery capacity.

Analysts and leakers have suggested the combination could push the iPhone 18 Pro Max toward 40 hours or more of real-world usage in mixed scenarios, potentially allowing many users to go 1.5 to 2 full days between charges even with intensive tasks like video streaming, gaming and AI features. Mashable’s report described the potential outcome as “impressive battery life,” noting that “a big battery paired with new chip equals success.”

The device is also expected to be slightly thicker and heavier than its predecessor to accommodate the larger cell without compromising other design elements. Previous rumors from late 2025 indicated the iPhone 18 Pro Max could become one of Apple’s heaviest iPhones ever, possibly weighing around 243 grams — about 3 grams more than the record-holding iPhone 14 Pro Max.

Battery improvements have become a key selling point for Apple’s flagship models in recent years. The iPhone 17 Pro Max earned top honors in independent tests, including a CNET comparison that pitted it against 34 other smartphones and declared it the endurance champion. Reviewers and users have reported exceptional all-day performance, often with significant headroom remaining at bedtime even after extended screen-on time.

Apple has historically prioritized software optimizations, efficient silicon and conservative battery sizing over chasing headline-grabbing mAh figures seen in some Android competitors. While devices from brands like Samsung, Xiaomi and Honor frequently exceed 6,000 mAh — and some reach 10,000 mAh in specialized models — Apple’s approach has focused on balanced performance, thermal management and longevity.

The rumored capacity bump for the iPhone 18 Pro Max remains modest compared to those rivals, but the efficiency leap from the 2nm process could close the gap in practical use. Some reports speculate the phone could comfortably exceed 40 hours of battery life under typical conditions, though exact figures will depend on final hardware tuning, iOS optimizations and real-world variables like screen brightness, network conditions and app usage.

The battery differences between regional variants are noteworthy. Models sold in markets requiring a physical SIM slot — such as China — are expected to house around 5,000 mAh or slightly more, while global eSIM-only versions could reach 5,100 to 5,200 mAh. This mirrors the pattern seen in recent iPhone generations, where eSIM designs free up internal space for larger cells.

The iPhone 18 Pro Max is part of a broader 2026 lineup that includes several changes to Apple’s traditional release strategy. Reports from Nikkei Asia and others indicate Apple will prioritize premium models this year, launching the iPhone 18 Pro, iPhone 18 Pro Max and the long-rumored first foldable iPhone — tentatively called the iPhone Fold — in September 2026. The standard iPhone 18 and a potential lower-cost variant may be delayed until spring 2027, reportedly due to memory chip shortages and a focus on higher-margin devices.

The foldable model is itself expected to feature an even larger battery, possibly in the 5,400 to 5,800 mAh range, to support its 7.8-inch unfolded display. However, the larger screen could offset some of those gains through higher power draw.

Beyond battery, other rumored upgrades for the iPhone 18 Pro Max include a refined Camera Control button, a 24-megapixel front camera, potential variable aperture on the main rear sensor and continued advancements in Apple Intelligence features powered by the A20 Pro’s neural engine capabilities. Design changes are expected to be minimal, with no major overhauls anticipated.

Apple has not commented on the rumors, and the company typically avoids discussing unannounced products. Supply chain leaks of this nature often prove directionally accurate but can shift as prototypes evolve and final decisions are made closer to production.
Tech observers note that while the battery capacity increase appears incremental, the efficiency story could be the bigger narrative. The 2nm process represents a meaningful advancement in semiconductor technology, potentially delivering double-digit percentage improvements in power efficiency over previous nodes.

For consumers who rely on their iPhone as an all-day companion — for work, navigation, photography, streaming and emerging AI tasks — the rumored enhancements could make the iPhone 18 Pro Max particularly appealing. Early reactions on social media and forums have been mixed: some praise the continued focus on endurance, while others express disappointment that the raw mAh figure isn’t more aggressive.

As the September 2026 launch approaches, more details are expected to surface about the full iPhone 18 family, including pricing, display specs and camera hardware. For now, the battery rumors position the Pro Max as a strong contender for best-in-class longevity in Apple’s lineup.