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Amid improving profitability and strong revenue growth, a clutch of India’s internet-focused stocks have shed the tag of being just great business models without earnings. An analysis of the Nifty India Internet index shows eight stocks delivering double-digit returns of up to 80% when India’s headline index Nifty has slipped 1.4%.Leading the rally is Le Travenues Technology (Ixigo), which has surged 81%, buoyed by a 73% year-on-year (YoY) rise in revenue and 26% growth in profit after tax (PAT). The stock is a multibagger and has consistently delivered earnings and topline growth since its listing in June 2024. The momentum in Ixigo reflects growing investor confidence in travel-tech as demand for domestic and international travel remains strong.Following closely is CarTrade Tech, which gained 45% in the same period. The company’s earnings recovery has been exceptional, with PAT jumping 105.5% YoY, driven by platform synergies post the integration of OLX India’s auto business. Revenue rose 22.3% YoY, signalling traction in both digital classifieds and auction segments.Now trading at Rs 1,224, Its shares have spiked over 34% in the past three months. The most widely tracked stock and now a Nifty constituent - Eternal’s rise has been quite fast paced since it first reported positive earnings of Rs 2 crore in the June quarter of 2023. In Q1, the PAT fell 90% YoY but was due to continued investments in quick commerce and going-out businesses. A 31% three-month return has helped the stock extend its rally to a staggering 391% in the past three years. FSN E-Commerce Ventures, which operates Nykaa, has also joined the bandwagon with 30% returns in the same period. Backing its recent surge is the 72% YoY Q1 PAT jump, aided by higher order volumes in its beauty and fashion verticals. Meanwhile revenue grew 23%. The company's consolidated GMV likely rose close to 30% in Q2, compared with mid-20s growth in preceding quarters so the Street expects a good show in the July-September quarter as well.Among other gainers, Infibeam Avenues rose 18%, supported by 71.8% revenue growth, while Swiggy advanced 12%, with both top line and bottom line improving. While Zomato’s arch rival’s profitability remains in the red, it has apprised investors of its expansion plan. While it faces stiff challenges in the quick commerce space, Swiggy’s benefits from the food delivery business duopoly. Online travel boutique platform TBO Tek has seen a modest gain of 10% versus its above-mentioned peers, but this is market outperformance and better than 13 other stocks in the Nifty India Internet index. The company’ Q1 remained stable with 22.2% revenue growth and 3.4% PAT rise. <iframe title="Internet stocks:" aria-label="Bar Chart" id="datawrapper-chart-dXSj5" src="https://et-infographics.indiatimes.com/graphs/dXSj5/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="747" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data["datawrapper-height"][t]+"px";r.style.height=d}}})}();</script>Anuj Gupta, Director at Ya Wealth Global Research highlights the gradual change in investors and analyst perception for new-age stocks from 2023. Many stocks including Eternal, PB Fintech and Paytm, have seen sharp rebounds from their all-time lows, he said.Also Read: Gold jumps 56%, silver 69% but jewellery stocks tumble 36% in 2025. Where is the money flowing?Well begun is half doneThe new-age stocks are entering the earnings season on a strong footing with a rating upgrade by JM Financial. The internet segment has been moved to ‘Overweight’ from an earlier ‘Underweight’ stance. The trigger is the government’s GST rates rationalisation that most analysts are seeing as a big and timely impetus for the domestic consumption story. Moreover, income tax cut earlier, followed by Reserve Bank of India’s (RBI) repo rate revision have been positive steps, noted JM FInancial. Kranthi Bathini, Director-Equity Strategy at WealthMills Securities highlights how the perception about new-age stocks have been changing for the past many quarters. Citing examples of Eternal and Paytm, Bathini said that internet stocks have learned the hard way why profitability matters to investors and have improved on this metric. Backed by strong business models, many companies are now deftly doing a balancing act, he opined.The Wealthmills expert also mentions Urban Company, a stock that was listed on September 17, to be making a lot of positive noise. He finds the business model niche and with growing urbansiation and digitalisation, platform companies are bound to benefit. "Several companies are showing clearer signs of moving towards profitability. India has a large, young, digitally-savvy population driving rapid adoption of digital services. Stronger economic growth and rising consumer confidence are expected to boost GDP and private consumption, providing a favorable backdrop for internet companies," Gupta said, echoing a similar sentiment.Gupta also pointed to the trend of business diversification in marquee names like Eternal, Swiggy and Paytm. Many new-age companies are diversifying their business models and product portfolios. Companies like Eternal and Swiggy have expanded into quick-commerce and dining-out businesses while others are leveraging AI and deep tech to stay competitive, the Ya Wealth analyst said.Q2 outlookNuvama Institutional Equities reiterates a healthy revenue growth for internet companies under its coverage.“Eternal should lead in terms of revenue growth driven by sustained momentum in QC, while Info Edge, Nykaa and Eternal would log margin improvement. Staffing companies are likely to report moderate sequential growth in general staffing while the IT subcontracting business shall report stable growth,” this brokerage said.JM in its Q2 earnings note has estimated a 47% YoY and 20% QoQ growth in net sales of internet companies. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged to soar 212% YoY and 109% QoQ. JM’s coverage universe of 17 stocks has usual suspects while others like Affle, Zinka Logistics, Yatra Online and Route Mobile. Also Read: PSU banks’ m-cap jumps 5X since FY20: 5 triggers that could drive re-rating & more upsideLaggards in the packBrokerage Motilal Oswal Financial Services has traded flat in the past three months despite 19% sales jump in Q1 and 32% PAT uptick. With market regulator Sebi’s measures to curb speculative F&O trades, there has been a sentimental dent for investors who view these steps as a direct hit on brokerages’ revenues. Brainbees Solutions which operates Firstcry brand has been an underperformer and trading below its issue price. The three worst performers are Easy Trip Planners, Angel One and RattanIndia Enterprises, falling between 23% and 18%. All three reported hits in their toplines and bottomlines in Q1. RattanIndia Enterprises is tech-focussed new-age company operating in e-commerce, electric vehicles, fintech and drones businesses.Others like Nazara Technologies, Just Dial, IIFL Capital Services, Indian Railway Catering And Tourism Corporation (IRCTC), Indiamart Intermesh, Info Edge (India), PB Fintech (Policybazaar) and Thomas Cook (India) have declined up to 18%. Stocks to buyNilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking expects positive trends in the internet stocks to continue as the overall structure looks promising for further upside. Selective names like Paytm, Nykaa, CarTrade, Swiggy, and Eternal appear attractive and can be accumulated from a medium-term investment perspective, Jain said, while recommending an ‘Avoid’ view on EaseMyTrip, Thomas Cook, JustDial, and Nazara. They lack a strong technical setup and may continue to underperform, so they are best avoided for now, he added.Buy Nykaa | Support at Rs 230 and target Rs 300Buy Paytm | Support at Rs 1,090 and target Rs 1,400Buy Swiggy | Support at Rs 390 and upside at Rs 470Buy CarTrade | Support at Rs 2,345 and target Rs 2,750Buy Eternal | Support at Rs 320 and target Rs 400 Bathini has just one pick with a long term view in the form of Eternal. Centrum Broking has a buy view on Info Edge, CE Info Systems and eMudhra for targets of Rs 1,644, Rs 1,994 and Rs 1,045 while ‘Neutral’ stance on Indiamart Intermesh and Nazara Technologies. Gupta's advice to investors is to track the earnings and sector-related developments of the companies, warning that the recent rally should not be seen as a risk-free rebound.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

In the latest edition of ETMarkets Smart Talk, Vikram Kasat, Head Advisory at PL Capital, shares his nuanced take on the current market landscape.Despite a flurry of positive developments — from GST and inflation data to policy support — Kasat believes Indian equities are likely to remain sideways in the near term, as valuation concerns and persistent FII selling weigh on sentiment.He stresses that this is a stock picker’s market, where investors must focus on selective opportunities rather than broad market moves, highlighting sectors like metals, autos, and defence, along with promising new-age listings such as MobiKwik and FirstCry. Edited Excerpts –Kshitij Anand: Let me get your perspective on the markets. We’ve seen quite a roller-coaster ride over the last 12 months. We’ve had highs and lows, but overall, the market seems to have consolidated, giving flattish to slightly negative returns. How are you reading the markets right now?Vikram Kasat: I have a very different view from the consensus on the markets. First of all, everyone seems bullish because of several developments — the GST news, the upcoming income tax announcements, inflation data, rate cuts, and GDP figures. However, my thought process is different.If we look at the MSCI Index, we are almost near recent lows. The bond selling, as highlighted by the Morgan Stanley Composite Index, is also significant. Whenever bond selling happens globally or in a specific country, markets do not rise sharply from there — they experience a jerk. That’s point number one.Point number two, FIIs have been selling consistently. Of course, they’ve been selling for the last five years, but what’s concerning is that even after so much positive news, their selling hasn’t stopped. Every day, they’re selling around ₹3,000–₹3,500 crore in the cash market.In the F&O segment, FIIs are currently about 86–87% short and only 13% long — that’s a big signal. Despite so much good news and even the so-called “bromance” between Trump and Modi, they haven’t reduced their short positions. That’s worth noting.Another major concern is valuations. The valuations are not on the positive side. The last quarter results weren’t very encouraging, and I expect the current quarter’s results to be similar. Valuations could become a key issue. To improve sentiment, we’ll need to see strong announcements around corporate or government capex.Although the GST announcement was positive, its September 22 implementation date meant nearly half a month or more of limited activity. So, I believe we should wait for this quarter’s results before jumping into the markets. For now, I expect a sideways market — more of a stock-picking market going forward.Kshitij Anand: Let me also get your view on geopolitics. We’re seeing a series of tariff announcements — first 25%, then an additional 25%. There’s also the H-1B visa issue. Meanwhile, some central banks are hiking rates, others are cutting. The Bank of Japan and the US Federal Reserve have reduced rates, and the Reserve Bank of India has already cut 100 bps in the CRR. Economists expect another CRR cut to support growth. How are you reading the geopolitical situation right now?Vikram Kasat: To put it briefly, it’s a new world in disorder right now. The erratic trade policy from the American administration is one of the reasons for India’s underperformance.It all started when Trump launched the trade war with China in 2018 — marking the dismantling of 80 years of globalization and free trade. A few years later, global companies began shifting manufacturing from China to India, giving rise to the “China Plus One” trend. For instance, all iPhones for the US market are now being manufactured by Foxconn in India.As recently as April this year, Modi and Trump met on good terms in Washington. India lowered import tariffs for American autos, and Modi also agreed to buy more defense equipment from the US. But now, relations between the US and India seem frozen. Recently, we were hit with 50% tariffs on exports to the US as punishment for buying oil from Russia.China, on the other hand, was given another 90 days to negotiate a trade deal with Trump — a privilege India didn’t receive. The main reason was China’s leverage over rare earth metals. Despite past disputes, Modi is now fostering warmer relations with China. China recently celebrated 80 years of victory over Japan, and Modi was among the guests.India is increasingly open to more trade with China, as it depends on China for raw materials, components for several industries, and access to rare earth metals. The Beijing summit, attended by Xi Jinping, Modi, Putin, and several leaders from the Global South, indicates the emergence of a new world order — one that doesn’t include America or Donald Trump.In my view, Trump’s trade policy has only managed to unite much of the world against him.Kshitij Anand: Coming to Indian markets, let me get your perspective on the sectors that look attractive and where you are currently focusing, because we have seen quite a bit of ups and downs—especially with GST coming in. We’ve seen one sector get all the limelight at different times, whether it’s autos or consumption picking up. How are you reading into this?Vikram Kasat: Our focus is mostly on new-age stocks, some of which have been recently listed and look really good. Apart from that, we are looking at stocks where the balance sheets may be fractured but the underlying business is strong, and there is some income visibility in the books. These look really attractive. I’ll give you some examples. The charts for most of these stocks look similar, but some of the names include MobiKwik, which I feel could be the next Paytm-type stock. The second is FirstCry—it has a market cap of around ₹20,000 crore and delivers a PBT of about ₹500 crore. There’s no cash burn in FirstCry’s books, so it looks good. I was also referring to Urban, which was recently listed. So, I believe new-age stocks will do really well from here on, and most of these are bottom-picking opportunities.Kshitij Anand: Now that you’re talking about stocks, let’s get your views or ideas from a medium-term perspective—where are you positive?Vikram Kasat: From a medium-term view, I’d say this quarter will be quite tough to make money—that’s point number one. However, there will be some pockets where I believe decent gains can be made. One such pocket would be metals, as I feel the sector could do well from here on, especially with China’s stimulus package expected soon and steel already performing strongly. The second would be autos, and the third would be defence.Kshitij Anand: So, metals, autos, and defence are the three sectors where wealth generation looks possible?Vikram Kasat: 100% possible from here on.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Reliance Industries Ltd (RIL) may tower over India’s corporate landscape with the largest market capitalization on the bourses, but when it comes to the Nifty 50, the benchmark index that mirrors India’s stock market pulse, it plays second, or rather, third fiddle. As of September 30, RIL ranked third in index weight at 8.18%, behind HDFC Bank at 12.87% and ICICI Bank at 8.52%. The reason lies not in its valuation, but in what investors can actually trade.The free-float factorThe Nifty 50 doesn’t assign weight based on total market capitalization. Instead, it uses a free-float market capitalization method, which factors in only the shares available for trading by the public. Promoter holdings, government stakes, and other locked-in shares are excluded.RIL’s promoter group, led by the Ambani family, controls roughly half the company’s shares. That means only the remaining portion, the free float, contributes to its index weight.By contrast, both HDFC Bank and ICICI Bank have public shareholding levels above 80%, giving them a far greater representation in the index calculation despite smaller total market caps. In the Nifty’s arithmetic, that translates to more weight, even if the total market value is smaller.This distinction is crucial. As the National Stock Exchange (NSE) explains, the Nifty 50 “is computed using a float-adjusted, market capitalization-weighted methodology, wherein the level of the index reflects the float-adjusted market capitalization of all stocks.” The system, adopted in June 2009, ensures that the index reflects the market’s investable portion rather than sheer corporate scale.Why the math favours banksUnder this framework, HDFC Bank’s free-float advantage gives it the heftiest share of the Nifty at 12.87%, followed by ICICI Bank’s 8.52%. Reliance, despite being India’s most valuable company, comes in third at 8.18%.Infosys and Bharti Airtel round out the top five with weights of 4.6% and 4.53%, respectively.Sector-wise, financial services command the largest share of the index at 36.47%, followed by information technology at 9.91% and oil, gas and consumable fuels at 9.79%, the category where Reliance remains the dominant player.This composition means that banking stocks, with their large free floats and high liquidity, exert a stronger influence on the benchmark’s movements than capital-heavy groups with concentrated ownership structures.Also read | 15 stocks to shop for this Diwali; SBI Securities eyes up to 25% upside. Check listWhat it means for investorsFor investors, this weighting system has real implications. A stock’s weight determines how much its price moves sway the Nifty 50. So while Reliance’s size and influence over India Inc. are undeniable, its relatively lower free float keeps its impact on the index below that of HDFC Bank. A 1% swing in HDFC Bank, for instance, nudges the Nifty far more than a similar move in Reliance.In effect, a company with a smaller market cap but a higher free-float ratio can punch above its weight in index terms. The free-float adjustment makes the index more representative of the market’s investable portion and less skewed toward companies with large but tightly held valuations.On Wednesday, October 8, Reliance shares fell 1.3% to Rs 1,367.3, retreating after a 1.6% gain over the previous two sessions. Even so, RIL remains India’s most valuable company, just not the heaviest stock on the Nifty 50.Also read | Tata Steel shares are up 25% in 2025. Can the rally hold above Rs 175?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The world just had its third-hottest September on record, the Copernicus Climate Change Service said on Thursday, as global average temperatures remained stuck near historic highs for yet another month.September did not break the record for the month set in 2023 and was only marginally cooler than the same period last year, said the EU's global warming monitor."The global temperature context remains much the same, with persistently high land and sea surface temperatures reflecting the continuing influence of greenhouse gas accumulation in the atmosphere," said Samantha Burgess, strategic lead for climate at Copernicus.September was 1.47C above the 1850-1900 average used to define the pre-industrial period before human activity began significantly influencing the climate.Such incremental rises may appear small. But scientists say every fraction of a degree of extra warming further destabilises the planet, raising the risk of extreme weather and triggering destructive climate tipping points.Global temperatures have been pushed steadily higher by humanity's emissions of greenhouse gases, primarily from fossil fuels burned on a massive scale since the industrial revolution.Scientists expect that 2025 will be the third-hottest year after 2024 and 2023, with recent months tracking just behind the records set during this extraordinary stretch.Nations face this reality as they gather in Brazil next month for the UN climate negotiations held every year to address the collective response to global warming.Major economies are not cutting emissions fast enough to avoid the worst impacts of climate change, and many are still approving new oil, coal and gas projects. Copernicus uses billions of measurements from satellites, ships, aircraft and weather stations to aid its climate calculations.Its records go back to 1940, but other sources of climate data -- such as ice cores, tree rings and coral skeletons -- allow scientists to expand their conclusions using evidence from much further in the past.Scientists say the current period is likely the warmest the Earth has been for the last 125,000 years.