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📈 Market Kya Lagta Hai
Nifty 50 🔻-2.50%
Midcap 150 🔻-4.26%
Smallcap 250 🔻-6.02%
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Sectors in Focus
Major Corporate Developments This Week
- Glenmark Pharmaceuticals Ltd: The company announced a licensing deal with Chinese drugmaker Hengrui Pharma for its under-development lung and breast cancer drug (Trastuzumab Rezetecan). The deal involves an upfront payment of $18 million, followed by regulatory and commercial milestone payments of up to $1.093 billion, as well as royalties.
- Ipca Laboratories: The company has entered into a partnership with BioSimilar Sciences PR LLC (BSS), US, to focus on a next-generation monoclonal antibody biosimilar targeting cancer and autoimmune diseases. Ipca will transfer late-stage development, clinical manufacturing, and commercial supply to BSS’ 200,000 sq. ft facility in Puerto Rico.
- NTPC: The company’s arm, THDC India, commissions Unit II (660 MW) of Khurja STPP. The total installed and commercial capacity of the NTPC group increases to 83,696 MW.
- Gujarat Pipavav: Bags contract from ONGC to provide marine support & storage facilities for offshore supply base at Pipavav Port. Contract tenure: 5 years starting 1-Oct-2025.
- Birla Corporation Ltd: The company announced that its wholly owned subsidiary RCCPL Pvt. Ltd. has been declared the ‘Preferred Bidder’ by the Telangana Government for the Kanpa-Junapani Limestone Block in Adilabad district, spanning 3.38 sq km, with the highest final price offer of 87.05%.
- Lupin: The company has received tentative approval from the US health regulator for the generic version of Bictegravir, Emtricitabine, and Tenofovir Alafenamide tablets used to treat the human immunodeficiency virus (HIV) infection.
- Shipping stocks: Union cabinet approves Rs 69,725 crore Package to Revitalize India’s Shipbuilding and Maritime Sector with a comprehensive 4-pillar approach focused on shipbuilding, maritime financing & boosting domestic capacity. The package aims to expand domestic shipbuilding capacity to 4.5 million gross tonnage annually, support mega shipbuilding clusters, infra expansion, an India Ship Technology Centre, and provide insurance/risk coverage, while enabling easier infrastructure lending, tax benefits, and ECB access.
- Apollo Hospitals: CCI Approves Co’s Composite Scheme of Arrangement with Apollo Healthco, Keimed, and Apollo Healthtech.
- Veedol: The company has launched a new range of fully synthetic engine oils under the brand 'Veedol', named 'SwiftPower' and 'SynthGlide', for the domestic market, with future plans for export.
- Bajaj electricals: Board has cleared proposal to acquire the Morphy Richards brand and related intellectual property rights from Ireland’s Glen Electric, part of the Glen Dimplex Group, for Rs 146 crore. The deal will cover rights to the brand in India, Nepal, Bhutan, Bangladesh, Maldives and Sri Lanka, giving BEL complete control over a premium name it has been associated with for over two decades.
- Mazagon Dock: Signs MoU with Tamil Nadu government to develop greenfield shipyard on Eastern coast.
- Swiggy: Company is planning to sell its stake in Rapido for a total consideration of about Rs 2,400 crore to Prosus affiliate MIH Investments. Separately Swiggy also disclosed plans to transfer its Instamart Quick commerce unit to wholly owned subsidiary through slump sale. The stake sale would help generate cash to Swiggy enabling the operations for coming six months.
- Cochin Shipyard: Signs MoU with HD Korea Shipbuilding & Offshore Engineering for long-term collaboration, combining India’s shipbuilding legacy with Korea’s advanced technology.
- Minda Corporation: The company will start commercial production of EV components from the beginning of FY26.
- Torrent Power: The company will acquire a 49% stake in Newzone India and a 100% stake in Newzone Power Projects for Rs 211 crore.
- KEC International: Company secures Rs. 3,243 crore orders in T&D business
- Maruti Suzuki: Company says the company delivered close to 30,000 cars & received 80,000 enquiries on the first day of Navratri
- Hyundai: Company delivered close to 11,000 cars on first day of Navratri.
TechnoFunda Investing Quote from Legends -
Seth Klarman's quote emphasizes the importance of viewing stocks as ownership stakes in real businesses, rather than merely as price fluctuations on a chart. When investors focus on the underlying business—its operations, financial health, competitive position, and long-term prospects—rather than short-term market volatility, they can make more rational, informed decisions. This perspective helps to anchor investments in fundamentals, fostering patience and discipline, instead of being swayed by market noise. By treating stocks as fractional ownership in companies, investors align their approach with business evaluation rather than speculative trading.
📚 Book I'm Reading This Week
Unknown Market Wizards by Jack D. Schwager is a compelling addition to the renowned Market Wizards series, exploring the untold stories of extraordinary traders who have achieved remarkable success while flying under the radar. Unlike high-profile investors, these traders operate outside the spotlight, demonstrating how discipline, adaptability, and a unique edge can lead to exceptional performance in the financial markets. Through in-depth interviews, Schwager delves into their strategies, mindsets, and journeys, offering invaluable lessons for traders and investors alike. The book underscores the idea that market mastery is not limited to Wall Street elites but is attainable for those willing to dedicate themselves to the craft.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
Loss Aversion in Behavioral Finance – Why We Fear Losing More Than We Love Winning
In the world of investing, the fear of losing money often outweighs the excitement of making a profit. This phenomenon is called Loss Aversion, a cornerstone concept in behavioral finance. Let’s explore how loss aversion impacts decision-making and how investors can overcome this bias to make better financial choices.
What is Loss Aversion?
Loss aversion is the idea that people feel the pain of losses more intensely than the pleasure of equivalent gains. For example: Losing ₹1,000 feels significantly worse than the joy of gaining ₹1,000.
This psychological bias often leads to irrational decisions, such as holding onto losing investments for too long or avoiding risk altogether, even when the potential rewards outweigh the risks.
How Loss Aversion Manifests in Investing
1. Holding Onto Losing Stocks
Investors may refuse to sell underperforming stocks because selling would “lock in” the loss. Instead, they hold on, hoping for a rebound, even when fundamentals suggest otherwise.
2. Selling Winners Too Soon
To avoid the risk of losing gains, investors often sell profitable positions too early, missing out on the full potential of the rally.
3. Avoiding Risk
Loss-averse investors may shy away from promising opportunities because the fear of potential loss overshadows the possibility of gain, leading to overly conservative portfolios.
A Real-Life Example: The Pain of Holding a Losing Stock
Imagine you purchased shares of a company for ₹1,000 each. Over time, the stock price drops to ₹700. Despite clear signs that the company’s fundamentals are deteriorating, you refuse to sell. Why? Because selling means admitting defeat and accepting the ₹300 loss per share.
Meanwhile, a new investment opportunity arises—one with strong potential for growth—but your capital is tied up in the losing stock. The result? You not only endure the loss but also miss the chance to recover by reallocating to a better investment.
The Science Behind Loss Aversion
Loss aversion is rooted in evolutionary psychology. For our ancestors, avoiding losses—like losing food or shelter—was critical for survival. This survival instinct persists today, even though financial losses don’t pose a threat to life.
In his groundbreaking research, Nobel laureate Daniel Kahneman demonstrated that losses are psychologically twice as impactful as gains. This disproportionate response explains why investors often act irrationally when faced with potential losses.
How to Overcome Loss Aversion in Investing
1. Set Clear Rules
- Use stop-loss orders to limit potential losses and avoid emotional decision-making.
2. Focus on Long-Term Goals
- Instead of fixating on short-term fluctuations, align your decisions with your long-term financial objectives.
3. Reframe Your Perspective
- View losses as part of the learning process. Every investor experiences them—it’s how you respond that matters.
4. Diversify Your Portfolio
- Spread investments across asset classes to reduce the impact of any single loss.
5. Seek Objective Advice
- Consulting with a financial advisor or using systematic investment strategies can help mitigate emotional biases.
Conclusion: Master Your Emotions, Master Your Investments
Loss aversion is a powerful force, but understanding its impact can help you make better financial decisions. By recognizing this bias and implementing strategies to counteract it, you can invest with greater confidence and clarity.
Remember, successful investing isn’t about avoiding losses entirely—it’s about managing them wisely while capitalizing on opportunities for growth. Embrace the process, and don’t let the fear of losing overshadow the potential for winning.
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Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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