The Indian equity market continues to navigate a period of heightened uncertainty, with experts advising investors to adopt a cautious, selective approach. Dharmesh Kant from Cholamandalam Securities, shared his insights on the current landscape, emphasizing that volatility is likely to persist in the near term.

Earnings Growth and Market Multiples

“Very difficult to take a call on the longevity of this uncertainty. The Iran situation may settle in 15–20 days, but a quarter of impact will already be reflected in earnings,” Kant said in an interview to ET Now. He noted that earlier expectations of 12–13% earnings growth for FY27 have now been revised down to 9–10%, reflecting the market’s adjustment to global events.

Despite this, Kant believes the Nifty index, currently trading around a 19x FY27 multiple, presents a “comfortable zone to start investing.” He emphasized a staggered buying strategy, suggesting investors allocate no more than 20–25% of their cash into carefully chosen sectors.

Selective Stock Picks
Kant highlighted several sectors and companies that appear attractive in the current environment. “Defence stocks have corrected, so HAL and BEL remain top picks,” he said. Midcap companies are also drawing attention, with Power Mech Projects Limited now available at around 12x one-year forward earnings, supported by a strong order book exceeding ₹39,000 crore.

Other picks include Welspun Corporation, operating in pipes both in India and the U.S., which has corrected to 11–12x one-year forward earnings. In the automobile space, Mahindra & Mahindra has fallen below 20x one-year forward PE, despite growth above 20%, making it a potential bargain.
Kant summarized, “This year will be a stock-picker’s market, focused on defence, metals, and automobiles. Banking and NBFCs, however, remain areas of caution due to potential asset quality stress and rising cost of funds.”
Strategy for Investors
Experts recommend maintaining a well-researched shopping list and adopting a staggered investment approach. “Even if the market moves over the next three to six months, selective investing is key,” Kant advised. With multiple triggers—including elections, monsoon uncertainty, and geopolitical developments—investors are encouraged to focus on quality stocks rather than sectoral trends alone.
While valuations have corrected, caution remains paramount. A selective, patient, and bottom-up strategy may help investors navigate the volatility while identifying long-term opportunities.

The eSafety commissioner has warned Elon Musk’s X about the availability and accessibility of child abuse material on the platform.

It can be recalled the X’s Grok came under fire earlier this year for generating illegal deepfake images that have sexually depicted women and children.

eSafety Says Child Abuse Material is ‘Particularly Systemic’ on X

The revelations were made in a letter that Guardian Australia was able to obtain under freedom of information laws.

In the letter, eSafety’s general manager of regulatory operations, Heidi Snell, said that “the availability of CSEM [child sexual exploitation material] continues to appear particularly systemic on X”.

“eSafety has not identified CSEM to be as readily accessible on any other mainstream service,” Snell added.

While the letter acknowledges X’s efforts to reduce the number of such material on the platform, Snell said that they were still rather prevalent as seen in hashtags advertising CSEM.

“We are concerned that apparently innocuous hashtags appear to be coopted to advertise CSEM, particularly when used together,” Snell said.

The Guardian notes in its report that it was unable to retrieve X’s response to eSafety’s letter.

Grok’s Deepfake Scandal

It can be recalled that X was embroiled in a scandal back in January when Grok began to generate sexualised content.

At that time, eSafety released a statement, saying that it “remains concerned about the use of the generative AI system Grok on X to generate content that may sexualise or exploit people, particularly children.”

While eSafety acknowledged that it was only getting a small number of reports on the issue, it already wrote to X regarding the matter.

“Additional mandatory codes will commence on 9 March 2026, which create new obligations for AI services, among others, to limit children’s access to sexually explicit content, as well as violent material and themes related to self-harm and suicide,” eSafety added in its statement.

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The rupee lost 14 paise and traded at 92.42 against the US dollar in early deals on Tuesday, as it failed to resist pressure from rising crude oil prices and the incessant withdrawal of foreign funds amid the heightened West Asia crisis.

Subdued domestic equity markets and elevated American currency also weighed on the local unit even as investors moved cautiously, awaiting the interest rate decision of the US Federal Reserve, according to forex traders.

At the interbank foreign exchange, the local unit opened at 92.35 and fell further to trade at 92.42 against the US dollar, registering a 14-paise decline from its previous closing level.

The local unit ended Monday’s session with a marginal gain of 2 paise at 92.28 against the dollar.

The rupee, one of the worst-performing Asian currencies, touched its lowest intra-day level of 92.47 at the end of the previous week before closing the session at 92.30 against the dollar, its lowest-ever closing level until Friday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.19 per cent higher at 99.65.
Brent crude, the global oil benchmark, was trading higher by 2.68 per cent at USD 102.87 per barrel in futures trade. On the domestic equity market front, the Sensex declined 91.62 points, or 0.12 per cent, to 75,411.23 in early trade, while the Nifty fell 34.25 points, or 0.15 per cent, to 23,374.55.

The latest government data released on Monday showed the country’s trade deficit narrowed to USD 27.1 billion in February compared to January.

Merchandise exports dropped marginally by 0.81 per cent to USD 36.61 billion, while imports increased by 24.11 per cent to USD 63.71 billion in February this year from USD 51.33 billion recorded a year ago.

Foreign institutional investors sold equities worth Rs 9,365.52 crore on a net basis on Monday, according to exchange data.

Indonesia’s Danantara, a sovereign investment platform, supports long-term growth by directing capital into key sectors, improving SOE performance, and aiming for $50 billion annual returns.

Indonesia’s Sovereign Investment Platform: Danantara

Indonesia’s sovereign wealth fund, Danantara, has completed its first year, marking a significant step in the country’s long-term economic planning. Positioned at the core of Indonesia’s strategy, Danantara aims to direct national capital toward critical sectors and large-scale development projects, moving beyond merely holding state enterprise assets. This shift reflects Indonesia’s commitment to fostering sustainable economic growth through strategic investments.

Strategic Goals and Sector Oversight

The platform manages a diverse portfolio across key industries such as banking, energy, telecommunications, infrastructure, and mining. Its role is to facilitate targeted investments that support industrial expansion and improve infrastructure. Early indicators show that Danantara is beginning to align state assets with national economic priorities, laying a foundation for broader economic stability and growth.

Asset Management and Future Ambitions

Danantara has set ambitious financial targets, aiming to generate around US$50 billion annually with a 5% return on assets. While comprehensive performance data remains limited due to ongoing restructuring, initial reports highlight a substantial 300% improvement in the return on assets of SOEs under its management. These early results suggest that governance reforms are effectively bolstering asset performance.

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Read the original article : Indonesia’s Danantara After Year One: Growth Targets, Asset Consolidation, and Investment Implications

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