July 27, 2025
Tru Cap Bonds' default
• Bonds, as some of our users would have noticed, have been warned about the risks of these investments.
• We try to ensure that investors diversify across at least 8-10 bonds in their portfolio over time.
• We strongly advise against buying bonds blindfolded from online platforms that are purely transactional.
• Credit Ratings, in our opinion, are only a reference and not a be-all parentage; promoter background and end lending pool are more important for us while recommending, Vs just ratings.
• This is not the end, and we surely will see more defaults as we go along - something I have mentioned many times earlier - especially companies lending to Gen Zs and MFIs seem to be under fair stress.
• We will continue to have bonds as part of our recommendations, but we will continue to be discerning.
• Nifty had a volatile ride, falling towards the end of the week, with small caps bearing the bigger brunt of the fall.
• US markets were flat with the Nasdaq continuing to trade above 21,000 (However, the Nasdaq rise has been led by very low participation and on the back of big moves from the likes of Nvidia).
• As mentioned earlier, from now until at least 24k of the Nifty, we recommend incremental and lump sum deployments only through balanced funds and/or small allocations to discerning structures.
• Most FII s are staying out presumably due to the uncertainty on the US / India trade deal, and surely if that doesn't turn up, there could be short-term ramifications in specific affected sectors.
• Nifty on this account has been one of the worst-performing indices this year, with South Korea being the best-performing one.
• Morgan Stanley has published an upbeat report on India (The India opportunity) - Link below in the Interesting Reads section.
• Several pockets of realisation in the markets coming in - NSDL IPO is at a 22% discount to the unlisted price, stock market darlings like Tejas Networks are down by > 50% (for many who tailgate investors like Vijay Kedia, this is a big learning as they exit without any information to you and retail investor languish once the big sharks get out).
Source - Alphaideas
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