Business
Midcaps in a sweet spot? Why Nippon India’s Rupesh Patel sees a valuation correction despite new index peaks
Edited excerpts from a chat with Rupesh Patel, Senior Fund Manager – Equity Investments, Nippon India Mutual Fund:
Your Nippon India Growth Mid Cap Fund delivered a strong 22% over the last 5 years, beating the benchmark. But given your Growth at Reasonable Price (GARP) philosophy, where are you actually finding “reasonable” valuations in a midcap market that many currently see as overheated?
On an aggregate basis, the NSE Midcap 150 index has remained almost flat since September 2024. However, during this period, earnings have grown at a reasonable rate. In fact, midcap as a category has been the most resilient and delivered higher growth compared to other segments of the market. As a result, valuations today, though they appear higher compared to long-term averages, have corrected as compared to where we were in September 2024.
Coming to Nippon India Growth Fund, we follow a bottom-up approach to construct the portfolio and buy stocks based on their relative attractiveness on risk-reward equation. Some of the businesses in the category may appear expensive in the near term; however, the size of the opportunity and their ability to maintain earnings growth at a reasonable rate over the long term make them attractive from a medium to longer-term perspective.
You are overweight financials and underweight technology in the midcap fund. What’s the rationale? How do you think midcap lenders and midcap IT companies are placed at this stage?
Our OW stance on financials is on account of our exposure to lenders as well as other beneficiaries of financialization of savings like Life Insurance companies, asset management companies, Exchanges, etc.
On the lending side, most of our exposure is to well-capitalised lenders where asset quality is largely expected to hold, Return on Assets/ Return on Equity remains healthy, and valuations are reasonable in the context of the overall market.
In IT companies, we have been underweight since the last few quarters, largely owing to the risk of a slowdown in earnings growth on account of current geopolitical uncertainties and the impact of disruptions like AI. Valuations were also a concern till a few quarters back. Going ahead, as the dust settles and some of these companies evolve and adapt to new realities, growth will recover from current lows. Companies in this sector are generally capital efficient and generate free cash flow, making them attractive bets again as valuations turn favourable.Within the midcap space, how do you read the Q4 earnings season? What are your biggest takeaways for investors?
Q4 earnings season for midcaps has turned out to be quite resilient, and most companies are delivering on expectations. However, going ahead, risks related to deterioration in the macro environment, cost inflation, and logistics remain relevant. If current geopolitical uncertainties continue, we must be cognizant of these risks and their impact on earnings and valuations.
Given the growth trajectory, valuations and earnings, midcap companies are in a sweet spot. Would you agree?
If we look at the last few quarters, midcap companies’ earnings have remained resilient. Most of them have delivered healthy earnings growth even in Q4, FY’26. However, aggregate returns of midcap companies as represented by the NSE Midcap 150 index have remained flat since September 2024, resulting in a valuation correction over this period.
Further, midcap is a very diverse category with a universe representing multiple sectors and some unique and fast-growing profit pools that have the potential to grow meaningfully over the medium to long term; hence, on a bottom-up basis as well, opportunities exist in this segment of the market.
How have you been reshuffling your portfolio to realign it with the realities of war?
As mentioned earlier, we remain cognizant of risks arising on account of deteriorating macro conditions, inflation in costs and logistical challenges, if current geopolitical uncertainties persist. We also remain aware of the potential impact of these risks not only on earnings growth but also on market valuations. In some instances, current stock prices may already be reflecting risks of these uncertainties, making the risk-reward favourable. Hence, our approach is to remain aware of valuations and avoid vulnerable businesses.
From a 3-5 year perspective, which sectors do you think are best placed at this stage – both from a growth as well as a valuation perspective?
We remain positive on Financials, Consumer Discretionary, and select industrials.
Within financials, we are positive on lenders as well as companies that benefit from a bigger trend on the financialization of savings. Accordingly, we have exposure to companies in the insurance space, Asset Management Companies, Exchanges and other financial services companies. On lenders, asset quality remains benign, they are well capitalised, generate decent Return on Assets (RoA) and Return on Equity (RoE) and valuations are reasonable.
Consumer discretionary companies are likely to benefit from favourable demographics, growth in per capita incomes and trends on premiumization playing out in multiple categories over the medium to long term.
On the industrial front, the reason to be positive is on account of various initiatives taken by the government to encourage manufacturing in India. Select companies in Auto ancillaries, Electronics manufacturing, precision engineering and defence-related segments can also do well. However, these are broad sectors, and winners will have to be picked on a bottom-up basis, considering factors like their manufacturing prowess, management strength and cost competitiveness.
The midcap index has already hit a new peak this month, ahead of both small and largecaps. What’s the reason behind this optimism, and do you see valuation risk building?
Although the midcap index is close to an all-time high, its last 20 months’ returns have been flat despite midcap companies as an aggregate delivering superior growth. In that sense, valuations today have turned favourable on account of this time correction. Even if we look at the last 3 years’ earnings on a CAGR basis, midcap as a category has reported superior earnings growth as compared to broader markets. Going ahead as well, the outlook on midcap companies’ earnings growth continues to remain healthier. In that sense, the performance of the midcap index is largely a reflection of underlying earnings growth.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)
Business
Costco notifies members of cheese bread recall over salmonella fears
Check out what’s clicking on FoxBusiness.com.
A frozen cheese bread product sold at Costco is being recalled over concerns it could be contaminated with salmonella, prompting the retailer to notify customers who purchased the affected items.
Champion Foods LLC announced a voluntary recall of certain batches of Motor City Pizza Co. 5 Cheese Bread after learning that an ingredient supplier had recalled milk powder because of a potential salmonella contamination concern.
According to the company, the recalled milk powder was supplied to a third-party manufacturer that produces a seasoning blend used in the product’s five-cheese sauce mixture.
Costco also sent notices to members who purchased the product, saying its records indicate they, or one of their add-on members, bought Motor City Pizza Co. 5 Cheese Bread between Feb. 6 and May 29. The wholesale club advised customers not to consume the recalled product and to return it to a local Costco warehouse for a full refund.
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Champion Foods LLC announced a voluntary recall of its Motor City Pizza Co. 5 Cheese Bread, which is sold at Costco, over potential salmonella concerns. (Champion Foods / Unknown)
The recall affects both single-pack and two-pack versions of the frozen bread product.
The affected single-pack product carries UPC code 8 70375 00511 1 and includes sell-by dates ranging from Feb. 4, 2027, through April 21, 2027.
The affected two-pack product carries UPC code 8 70375 00509 8 and includes sell-by dates of Feb. 3, 2027; Feb. 4, 2027; Feb. 24, 2027; Feb. 25, 2027; March 10, 2027; March 11, 2027; March 18, 2027; and March 25, 2027.

Costco sent a letter to members about the recalled product. (Joe Raedle/Getty Images / Getty Images)
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Champion Foods said routine testing conducted by the seasoning blend manufacturer before the ingredient was used in production showed the batches tested negative for salmonella. The company said it nevertheless decided to issue the recall “out of an abundance of caution” for customer safety.

Costco urged consumers who purchased one of the recalled products to not eat it and return it to Costco for a refund. (Joe Raedle/Getty Images / Getty Images)
Costco’s notice stated that no illnesses or injuries related to the recalled products have been reported.
Salmonella is an organism which can cause “serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems,” according to the U.S. Food and Drug Administration (FDA). Symptoms among healthy individuals may include fever, diarrhea, nausea, vomiting and abdominal pain.
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In rare and more serious cases, salmonella can spread to the bloodstream, potentially causing arterial infections, endocarditis or arthritis.
FOX Business’ Bonny Chu contributed to this report.
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Market Trading Guide: YES Bank among two stock picks for Monday with up to 10% upside scope
Analysts say that in the near term, investor attention is expected to shift toward key domestic triggers, particularly the upcoming RBI monetary policy decision and GDP data release, which will provide further insights into the inflation trajectory and overall economic momentum.
Here are two stocks to buy on Monday
1) YES Bank – Buy | CMP: Rs 23.22 | Stop loss: Rs 22.5 | Target: Rs 25
Yes Bank shows strong bullish momentum as the price breaks decisively above the key horizontal resistance level at Rs 22.02. This breakout is supported by a noticeable volume expansion, confirming genuine market participation. The price is trading cleanly above the short- and long-term EMAs, which are fanning out in a bullish alignment, while the RSI rises above 60, signalling accelerating upward strength toward the descending trendline.
2) NBCC – BUY | CMP: Rs 100.3 | SL – Rs 95 | Target – Rs 110
NBCC (India) Limited exhibits a strong bullish reversal as price breaks above multiple short-term EMAs and tests the long-term blue EMA near 101.30. This upward shift is backed by a notable volume surge, indicating a clear influx of buyers at these levels. Meanwhile, the RSI has crossed above the 60 threshold, signalling accelerating positive momentum and confirming a strong structural turnaround from the recent bottom
(Virat Jagad is Sr Technical Research Analyst at Bonanza Portfolio)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times.)
Business
Dell Delivers On AI Infrastructure Demand (NYSE:DELL)
Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of DELL, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Business
The Private Credit, Subprime Comparison Is Intuitive. It’s Also Wrong.
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Business
UFO: Time To Consider Selling The Space Stock Rally (Downgrade) (NASDAQ:UFO)
Ian Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian’s Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Business
NYT Connections Puzzle #1085 for May 31, 2026 Delivers Colorful Mix of Yellow Icons, Billiards and Slang
NEW YORK — The New York Times Connections puzzle for Sunday, May 31, 2026, challenged players with a vibrant blend of everyday icons, sports terminology and clever wordplay, as solvers grouped 16 words into four thematic categories in the popular daily brain teaser.
Puzzle No. 1085 featured categories ranging from bright yellow objects to billiards equipment, sailor slang and a punny take on wood types. The solution encouraged both casual players and dedicated fans to think laterally across pop culture, sports and language.
Yellow Category (Easiest): Things That Are Yellow — Butter, Pikachu, Rubber Duck, School Bus. Green Category: Billiards Terms — Break, Cue, Pocket, Rack. Blue Category: Slang For Sailor — Jack, Salt, Sea Dog, Tar. Purple Category (Hardest): Kinds Of Wood Plus “S” — Sash (ash), Soak (oak), Spine (pine), Steak (teak).
The puzzle’s yellow group stood out for its visual appeal, connecting classic symbols of the color yellow. Pikachu, the beloved Pokémon character known for its electric yellow fur, joined childhood staples like the rubber duck and school bus, alongside the common food item butter.
Game Mechanics and Growing Popularity
Connections, created by Josh Wardle and acquired by The New York Times, requires players to sort 16 words into four groups of four based on shared themes. Correct groupings earn color-coded feedback: yellow for the simplest, followed by green, blue and purple for the most challenging.
Since its debut, the game has built a loyal audience alongside Wordle and other NYT Games offerings. Its appeal lies in the balance of straightforward associations and trickier lateral thinking, often sparking discussions on social media about missed connections or clever reveals.
On May 31, 2026, many players noted the puzzle’s accessible yet engaging difficulty. The billiards category tested knowledge of pool terminology, where “break” refers to the opening shot, “cue” is the stick, “pocket” the target and “rack” the triangular setup of balls.
The blue category highlighted nautical slang with historical roots. “Tar” and “salt” evoke old seafaring terms, while “sea dog” describes an experienced sailor and “jack” appears in phrases like “jack tar.”
The purple category provided the day’s wordplay twist, adding “S” to wood types: ash becomes sash, oak becomes soak, pine becomes spine, and teak becomes steak. This type of pun often separates strong solvers from others.
Player Reactions and Strategies
Social media and puzzle forums buzzed with reactions throughout the day. Many appreciated the yellow category’s straightforward nature, while others struggled with the purple group’s linguistic trick.
Effective strategies for Connections include scanning for obvious clusters first, such as colors, sports terms or professions, before tackling subtler links. Starting with potential categories like billiards or yellow objects often unlocks the grid efficiently.
Players in Seoul and other international hubs frequently engage during evening hours, turning the daily puzzle into a shared cultural ritual that blends English vocabulary practice with entertainment.
Broader Context in NYT Games
Connections joins a robust lineup from The New York Times Games team, which carefully curates puzzles to maintain freshness and fairness. Each daily edition offers a new challenge at midnight local time, fostering global participation across time zones.
The game’s design rewards diverse knowledge — from Pokémon to maritime history and woodworking puns — making it both educational and fun. Solvers often report improved pattern recognition and lateral thinking skills over time.
Past puzzles have covered topics from food and music to history and science, demonstrating the team’s broad vocabulary and thematic creativity. Puzzle No. 1085 exemplified this range with its mix of playful and technical categories.
Tips for Mastering Connections
Experts suggest several approaches for consistent success:
- Look for super obvious groups first, like colors or common phrases.
- Consider multiple meanings of words — “salt” can be a seasoning or a sailor.
- Pay attention to wordplay, especially in harder purple categories.
- Use the mistake limit strategically; three errors end the game.
- Practice daily to build intuition for common category types.
For Sunday’s puzzle, identifying the yellow items early often provided momentum, while the sailor slang required some nautical familiarity or process of elimination.
Cultural Impact and Community
In South Korea, where English learning remains a priority, Connections serves as both entertainment and a learning tool. Players frequently discuss solutions in online communities, sharing strategies and celebrating streaks.
The game’s accessibility — available through NYT subscription or limited free plays — has helped sustain its popularity years after launch. Families and friends compete to see who can solve fastest, creating bonding moments around shared puzzles.
Unlike more solitary games, Connections sparks conversation. Players post their grids online, comparing attempts and laughing over near-misses with the purple category’s wood puns.
Looking Forward
As May 31 drew to a close, attention turned to Monday’s puzzle, promising fresh challenges. The New York Times continues refining Connections with occasional special editions and ties to other games in its portfolio.
For those who solved No. 1085 perfectly, the satisfaction came from connecting seemingly random words into coherent themes. Even those who needed hints appreciated the puzzle’s clever construction.
The enduring appeal of Connections lies in its simplicity and depth. A single grid of 16 words can transport players from childhood memories of yellow school buses to the felt tables of billiards halls and the decks of old sailing ships.
As millions reset for the next puzzle, Sunday’s edition left a colorful impression — a reminder of how word games continue to unite players through shared curiosity and mental agility.
The NYT Games team selects words to ensure solvability while maintaining challenge, contributing to the franchise’s strong reputation for quality and fairness.
Business
Sensata Technologies: Exploring The Opportunities That The AI Boom Brings (NYSE:ST)
I am a full-time equity analyst and the co-founder of Mina Vista Capital Management, a hedge fund that my business partner, William Hazen, and I started. I look for long-term investment opportunities with a focus on fundamentals. I’ve done extensive research on industries such as energy, technology, and homebuilding, and I’m continuing to expand my knowledge. I find discussions with other analysts, especially when we hold opposing views, very constructive to both of our theses. If you have a different view on any of the companies I cover, send me a message on X and I’ll be happy to discuss.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Idacorp Stock Is Still a Buy
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