According to latest market reports, benchmark equity indices experienced their first weekly decline in three weeks, with the Sensex plunging 2.70% and Nifty slumping 2.20% during the week. As per Emkay Wealth Management, the market remained volatile due to lingering fears around renewed escalation in Middle East conflict, while investors suffered a notional wealth loss of ₹12.9 lakh crore during the week. The weakening rupee remains a key concern, with the Indian rupee closing at a fresh record low of 95.97 against the US dollar. Foreign portfolio investors sold shares worth ₹10,106.91 crore, while domestic institutional investors provided support by buying shares worth ₹18,524.53 crore during the week. Recent analysis suggests India's market valuations appear attractive given the under-allocated foreign investor positioning, though enhanced macro risks warrant caution in scaling up India allocation.
According to reports from The Financial Express, ace small-cap value investor Porinju Veliyath has executed his classic contrarian strategy through two fresh portfolio additions in March 2026. His 18-stock portfolio is valued at approximately ₹260 crore with sectoral tilts towards proptech, niche industrials, and marketing services. The two new investments align perfectly with Veliyath's approach of ignoring market herd behavior and focusing on undervalued opportunities in the unloved corners of the market, particularly as broader indices witnessed sharper declines with BSE Midcap and BSE Smallcap falling 3.19% and 3.59% respectively - marking their steepest weekly decline in nine weeks. Recent market sentiment analysis indicates foreign investors have moved from the 'TINA' (There Is No Alternative) phase to an 'ANTI' India stance, with foreign ownership of Indian equity markets down to its lowest level since 2012.
As reported by The Financial Express, Shigan Quantum Technologies is incorporated in 2008 and listed on NSE Emerge SME platform in March 2022. The company specializes in designing, manufacturing, and supplying alternate fuel system components for compressed natural gas, liquefied petroleum gas, and hydrogen-based engines. With a market cap of ₹159 crore, it is the only Indian firm with fully indigenized BS-VI plus OBD-II compliant CNG fuel system built around multipoint gas injection technology. Veliyath acquired a 1.2% stake worth ₹1.9 crore in the company, which currently trades at a P/E of 23x.
According to The Financial Express analysis, Shigan Quantum Technologies has demonstrated strong growth over five years with sales compounding at 24% CAGR from ₹73 crore in FY20 to ₹211 crore in FY25. Net profit grew at 22% CAGR from ₹3 crore to ₹8 crore during the same period. The company's operating margin improved from 8% in FY20 to 10% in FY25, indicating a shift toward higher-value products. However, working capital challenges are evident with debtor days increasing from 51 in FY24 to 68 in the latest reading, resulting in a cash conversion cycle of 132 days.
As reported by The Financial Express, R K Swamy Ltd, founded in 1973, is a 53-year-old integrated marketing services group with a market cap of ₹453 crore. The company serves as the 9th-largest position among India's integrated marketing groups with clients including Aditya Birla Sun Life AMC, Dr Reddy's, Havells, Mahindra & Mahindra, and UltraTech Cement. Veliyath acquired a 1.2% stake worth ₹5.6 crore in the company, which has experienced significant volatility with shares dropping 68% from the IPO price of ₹288 to ₹90 as of May 13, 2026.
According to The Financial Express analysis, both investments align with Veliyath's contrarian approach targeting small to mid-sized companies with temporary troubles and beaten-up share prices. Shigan represents a cleaner growth story with niche IP and regulated tailwinds, while R K Swamy offers a deeper contrarian play with 53 years of brand equity and debt-light balance sheet. Recent market sentiment suggests India's subdued performance and large under-performance to Emerging Market Index, combined with recent pick-up in earnings, has resulted in India's valuation trading at around its long-term average at somewhat attractive levels. The success of these investments will depend on Shigan's ability to improve cash flow management and R K Swamy's recovery in marketing services revenue to FY24 levels within 2-4 quarters, particularly as foreign investor sentiment remains cautious amid geopolitical tensions and currency pressures.
