While Indian markets remained steady last week, US AI stocks and cryptos continued their decline for the third week in a row. Oracle fell 10 percent last week and is now down about 45 percent in just over two months. Strategy Inc (formerly Micro Strategy), which claims to be a Bitcoin Treasury company, fell 13 percent last week and 40 percent last month. These are large companies that correct like small caps.
Even a solid Q3 profit and increase and positive commentary from Nvidia didn’t have a significant impact. That’s unusual, and even more so because the recovery in stocks and markets in general took less than a few hours due to optimism about the results. There appear to be other factors putting pressure on the markets. It has long been known that AI stocks had inflated valuations. Why are they under pressure now? Have investors suddenly woken up to a concept called valuation? Unlikely! One can speculate about the causes of the defeat, but one factor that appears to be having an impact is tightening liquidity in the US. We also emphasized this last week.
This appears to be driven by the general tightening of financial conditions and the cracks in the US private credit market. Whether it will have a profound and significant impact is unclear, but there are some concerns about it. There will be more clues next week. It is important to monitor this because if this trend continues, it could eventually impact the Indian markets as well.
Indian Inc – Does or Sagriva?
Many reforms have been implemented in India since 2019 to revive animal spirits, a year when business confidence hit rock bottom. Despite this, private investment has remained sluggish. The fact that the country must come back to life is crucial for the country’s economic growth. In this article, based on analysis of data from more than 500 listed companies, I make clear why Indian Inc. and not the government are the only ones in this regard.
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2) Monitoring macroeconomic indicators
High-frequency indicators are the buzzwords that economists and analysts often talk about and have used in recent years to predict economic and market trends. What are these and how should you interpret them when it comes to your investment decisions? This primer by Nishant Gopalakrishnan will serve as a good guide.
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3) Inventory
The IPO rush appears to be subsiding, but not over yet. Sudeep Pharma’s IPO is open till November 25. Is it worth subscribing? Our pharmaceutical sector analyst Sai Prabhakar provides a detailed picture here.
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4) MF stress test
A long time ago, SEBI had directed MFs to periodically release stress test data for small and mid-cap funds. What do the recent data reveal. Dhuraivel Gunasekaran decodes it in this report.
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Published on November 23, 2025
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