Veteran investor Vijay Kedia shared his philosophy on how to navigate the stock market amid the daily barrage of news, headlines, and market updates. He explained that the stock market comprises two types of participants: traders and investors. “It is very simple. As you know, in the stock market, there are two kinds of animals you can call it—one is like a trader and one is like an investor. So, all this noise you are talking about, this is only for the traders. For investors, all these news actually does not matter. For them, the only thing that matters is earnings, and earnings do not come on a daily basis. Every day you face all kinds of news, so if you keep reacting to every piece of news, ultimately you will end up holding nothing in this market. And it is applicable at all times, at any given time.”

Kedia likened investing to running a marathon: “For me, it is like a scoreboard. I am a marathoner, running 42 kilometres. It does not matter where I am at the 1st kilometre or the 5th kilometre. As long as I am running, continuing my journey, I am okay. That is why the biggest thing is to cut off all this noise.”

He emphasized that patience is a critical quality for investors. “That is why it is difficult to make money also. You have to win over yourself. If you are not patient enough, at any given time you will be out of this market. These are the qualities of a good investor: knowledge, courage, and patience. Patience is very important to ultimately win in this market. If you do not have patience, you are out of the race. So, enjoy.”

When it comes to spotting long-term investment opportunities, Kedia shared his “SMILE” framework. “S stands for small in size, MI stands for medium in experience, L stands for large in aspiration, and E stands for extra-large market potential. I like to invest in a company that is small in its sector, has management with a clean track record and 15–20 years of experience, and management that is ambitious. The market potential should be extra-large so that the company remains small relative to the sector’s potential. These factors together help me identify companies.”

Kedia also emphasized investing in sunrise sectors and waiting for companies to reach inflection points. “Earlier, I bought a few companies that were losing money but had cash in their books. The sector completely changed. As per my quote, always remain invested in a sunrise sector at any cost and stay out of a sunset industry at any cost. I put stories on my radar and wait for the right time to invest. Sometimes, I wait five years, sometimes ten. When the company turns around and the sector is growing, I invest. That is my business.”

Ultimately, patience remains the core of Kedia’s approach. In a market dominated by instant news and volatility, his advice is simple yet timeless: ignore the noise, focus on fundamentals, and let patience do the heavy lifting.

Shares of IDBI Bank slipped as much as 4% to an intraday low of Rs 103 amid developments around the planned strategic sale of the state-owned lender. The disinvestment process has attracted bids from Indian-Canadian investor Prema Watsa’s Fairfax Financial and Emirates NBD.

The government of India and Life Insurance Corporation of India (LIC), which hold stakes of 45.48% and 49.24% respectively, are together looking to divest a 60.7% stake in the bank as part of the broader privatisation programme.

Meanwhile, Kotak Mahindra Bank clarified that it has not submitted a financial bid for IDBI Bank, dismissing recent media reports. The proposed sale was first announced in 2022, and the government is targeting to announce the successful bidder by March.

The bank has a current market capitalisation of around Rs 1.12 lakh crore. According to sources cited by Reuters, Fairfax — which already holds a majority stake in CSB Bank — may consider merging IDBI Bank with CSB Bank if its bid is successful.

The government has previously said the sale will be concluded in the current financial year ending March 31, 2026. The successful bidder will be allowed to rename the bank, Reuters reported last week.

IDBI Bank traces its origins to 1964, when it was established as the Industrial Development Bank of India through an Act of Parliament to support long-term industrial financing. In 2005, its commercial banking arm was fully merged into the institution, transforming it into a universal bank with both development finance and lending operations. Over time, however, this dual structure became a challenge, as the bank retained a heavy corporate lending focus even as peers diversified into retail segments, leaving it more exposed to concentrated risks and with limited balance from granular retail growth.
By the mid-2010s, mounting bad loans and weak capital buffers had significantly strained the bank’s financial position. In 2017, the Reserve Bank of India placed IDBI under the Prompt Corrective Action (PCA) framework after it breached key thresholds related to capital adequacy, asset quality, return on assets and leverage. The restrictions under PCA curtailed lending expansion and underscored the severity of the bank’s operational and balance-sheet stress.The situation reached a turning point in 2019 when the government directed Life Insurance Corporation of India (LIC) to acquire a controlling 51% stake and infuse capital to stabilise the lender. LIC’s takeover strengthened the balance sheet and reflected a clear policy decision to support the institution. Following the transaction, the RBI reclassified IDBI as a private sector bank for regulatory purposes, despite the continued majority ownership by government-linked entities.

IDBI Bank shares have risen 31.23% in the last 1 year.

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

The sharp moves across asset classes over the past year have reinforced the importance of diversification for Indian investors, with market participants increasingly recognising that portfolio construction must go beyond a narrow focus on domestic equities.

Mahesh Nandurkar, Head – India Research & India Equity Strategist, Jefferies said the experience of 2025 and the past 15 months has reminded investors of the need to spread exposure across asset classes and geographies.

“What the year 2025 did, or basically the last 15 months or so, just taught us the importance of asset class diversification. The prior three or four years, or maybe five years, it was just a one-way street. It was just one asset class that mattered, which was obviously equities. But we have just learned the importance of diversification,” he said. He added that diversification should not be limited to equities, debt and commodities, but should also include access to international capital markets. “Thankfully, now in India, we have access to a variety of international capital market access products offered by various mutual funds. We are also seeing GIFT City being made operational to that extent. It was always known and always talked about, but people just forgot about asset diversification in the previous four years. We are reminded of that once again,” Nandurkar said.

He said the Union Budget has gradually become less of a market-moving event, as reforms and policy measures are increasingly announced outside the annual exercise. According to him, investor anxiety around budget day has reduced for the right reasons, particularly after the implementation of GST, which has brought clarity to indirect taxation.

“I remember 10 or 20 years ago, people would sit with pen and paper and go through long lists of excise duties on various products and commodities. Thankfully, with GST, that part is literally out of the equation,” he said. For a fast-growing economy, frequent uncertainty around product-wise taxation is no longer necessary, he added. “For a country like India with a GDP of around $4 trillion and growing strongly, we do not need this hanging sword every year about what will happen to taxation on different products. In a way, it is a welcome change that the budget has become less of an event in terms of taxation changes,” Nandurkar said.

Commenting on the latest budget, he described it as pragmatic, with a calibrated approach to fiscal consolidation. He pointed out that while the government had been reducing the fiscal deficit by 40 to 50 basis points annually over the past few years, this time the pace has slowed to about 10 basis points, from 4.4% this year to a target of 4.3% next year. “That is a welcome change given low nominal GDP growth and low inflation. Although this means tighter fiscal consolidation in later years, for now it provides flexibility,” he said. He added that the additional fiscal space is being deployed productively. “The good news is that the incremental fiscal flexibility has been used to fund incremental capex. We have seen higher allocations for roads, railways and defence. That puts the economy in good stead,” he said.
Nandurkar acknowledged that some sections of the market were disappointed by the absence of capital gains tax relief and by incremental taxation in the form of STT, but said that in the broader context it remained a balanced and pragmatic budget.Looking ahead, Nandurkar said corporate earnings would be the key driver for markets, with growth expected to improve materially after a weak year. He said corporate EPS growth in FY26 is tracking at around 7% to 8%, reflecting several temporary headwinds that are likely to reverse.

“My sense is that this depressed growth is attributable to various factors that are likely to reverse next year. We are looking at a much stronger 12% to 14% EPS growth next year,” he said. He cited three major drivers for the improvement: higher nominal growth due to rising inflation, stabilising interest rates benefiting banks, and the sectoral impact of monsoon patterns.

He said FY27 inflation is expected to move well above 4%, which would lift nominal growth and support earnings.

“Ultimately, what matters is cash in hand,” he said, adding that real growth metrics are rarely the focus for investors. He also said the end of the rate cut cycle should help banking sector profitability after margins were hit by 125 basis points of rate cuts over the past year. With banks accounting for a large share of market indices, this could provide a meaningful boost to overall earnings growth. On monsoons, Nandurkar said a supernormal monsoon can actually hurt several listed sectors such as power, construction, cement, steel, soft drinks and air-conditioning, while a more normal or even slightly weaker monsoon can be supportive for corporate earnings. With some early forecasts pointing to possible El Nino conditions, he said this may not be positive for rural incomes but could be constructive for corporate EPS growth. “So yes, I am quite optimistic on corporate EPS growth improving materially next year,” he said.