"Why Most Retail Investors Fail: Zerodha's Nithin Kamath Drops a Truth Bomb"

Welcome Back Investor!

In a high-stakes trade chess match, US Commerce Secretary Donald Lutnick has drawn a clear line in the sand August 1 is the “hard deadline” for India to drop retaliatory tariffs on American goods. While both nations are racing against the clock, failure to resolve the impasse could reignite trade tensions and shake investor confidence.

Let’s dive in!

But before we start!

If you find the contents of this email useful, subscribe now & share with your friends.

Today’s Market Menu

▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

▪️ Mindset

▪️ Stock Screener to up your game

IMPACT NEWS

💭 “Trading isn’t about being right. It’s about being consistent.”- Nithin Kamath

In a recent post, Zerodha’s Nithin Kamath breaks down a truth that many retail traders ignore: being right on a stock doesn’t guarantee profits.

Why?

Because most traders don’t manage risk.
They hold on to losing trades and exit winners too early.
They treat the stock market like a jackpot machine not a discipline.

Kamath emphasizes that trading is more about risk management than accuracy.
Even if you're right 50% of the time, you can be profitable if you cut losses quickly and let winners run.

Retailers often lose money because they chase excitement, not strategy.

Here are some takeaways:

• 🎯 Have a trading plan entry, exit, stop-loss.

• ⏳ Don’t time the market based on emotion.

• 🔄 Practice journaling and reviewing your trades.

• 🚫 Avoid overtrading and revenge trades.

The stock market rewards discipline, not drama.

If you're serious about growing as a trader, start thinking like a risk manager, not a fortune teller.

Because in the long run, it’s not about being right it’s about staying in the game.

MARKETS

The Indian stock market surged ahead as all key indices closed in the green. The Sensex jumped 442.61 points to settle at 82,200.34 (+0.54%), while the Nifty 50 gained 122.30 points to reach 25,090.70 (+0.49%). Leading the rally was the Nifty Bank, soaring 669.75 points (+1.19%), indicating strong momentum in banking stocks. Meanwhile, the Nifty Midcap 100 advanced 363.85 points (+0.62%), showing sustained investor interest beyond the blue chips. It's a positive close for the markets, hinting at continued bullish sentiment across sectors!
_{Closing figures as on 21.07.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Eternal (+5.6%) Its Q1 revenue jumped a whopping 70% YoY (₹7,167 crore), fueled by robust growth in its quick-commerce arm, Blinkit making audiences and investors excited, even though profits dropped 90% due to expansion costs.

✅ ICICI Bank (+2.8%) & ✅ HDFC Bank (+2.2%) Both banks reported better-than-expected Q1 results, with ICICI delivering ~15% YoY PAT growth and HDFC showing strong loan growth, liquidity, and declaring its first-ever bonus share plus a special dividend. Their performance lifted the entire banking index by ~1.2%, powering overall market sentiment.

✅ HDFC Life (+1.7%) Rode the positive insurance vibes around the financial sector rally, showing investor confidence in its Q1 resilience.

Top Losers

🔻 Reliance Industries (–3.2%) Shares dropped on softer-than-expected performance in its oil-to-chemicals and retail divisions, which overshadowed gains from the broader banking rally.

🔻 Wipro (–2.5%) & 🔻 IndusInd Bank (–1.3%) While Wipro faced pressure from a weak IT sector amid rotation into financials, IndusInd Bank saw profit-taking after a brief run-up alongside its peers.

🔻 Eicher Motors (–1.2%) Auto stocks rested after a strong broader market, pressured by sector-wide consolidation and possibly easing sentiment following recent vehicle sales updates

INDIA FRONTIER

Everything else you need to know today

🛍️ Eternal’s Growth Rocket… With a Profit Parachute: Eternal’s Q1 results are a tale of two extremes revenue soared 70% YoY to ₹3,544 crore, thanks to Blinkit’s blistering growth. But profits? They nosedived 90% to just ₹25 crore. Expansion isn’t cheap and the real test now is turning scale into sustainability.

📈 India’s IPO Buzz: Hot on Volume, Cold on Cash? India is one of the world’s most active IPO hubs in 2024, with 114 companies debuting on the bourses. But here's the twist deal size still lags behind the U.S. and China.

🌴 India Becomes Malaysia’s #1 Palm Seed Buyer: India just topped Malaysia’s list of oil palm seed buyers as domestic palm oil production kicks into high gear. The country’s ‘Aatmanirbhar’ push in edible oils is real and it’s reshaping global agri-trade routes in the process.

✈️ GMR Airports Eyes ₹6,000 Cr Liftoff to Ease Debt Drag: GMR Airports is prepping a ₹6,000 crore war chest possibly tapping mutual funds to refinance existing loans. With India’s aviation demand flying high, GMR is betting big on cleaner balance sheets and smoother landings ahead.

SPECIAL

⚡ Reliance’s Green Energy Bet: A $10 Billion Signal to the Future

Reliance is making waves again this time, not with oil, but with clean energy.

According to Reuters, Reliance Industries has ramped up its green energy ambitions, committing over $10 billion to a diversified clean energy portfolio solar, battery storage, green hydrogen, and wind.

The result? A wave of analyst optimism, especially after its recent AGM where Mukesh Ambani reaffirmed Reliance’s vision to become net carbon zero by 2035.

💡 Why this matters:

• Reliance is building one of the world's largest integrated renewable manufacturing hubs in Jamnagar, Gujarat.

• It’s not just energy transition it's vertical integration, from polysilicon to battery packs to electrolyzers.

• Analysts believe this could reduce India's import dependence and make Reliance a global clean-tech player.

But beyond the numbers, this is a strategic repositioning:
👉 From fossil fuels to future fuels.
👉 From energy exporter to green innovation leader.

In a world chasing ESG mandates and decarbonization targets, Reliance is planting a flag in the clean energy race and the market is watching.

India doesn’t just need clean energy.
It needs clean energy giants. And Reliance might just lead that charge.

THE HANOOMAAN INSTITUTE

💼 Quiet Wins: Why Introverts Often Build Wealth Better Than Extroverts

We often associate wealth-building with bold networking, charismatic leadership, and social agility. But what if introverts have a hidden financial edge?

5 surprising ways introverts often outpace extroverts in building long-term wealth:

1. They Spend Less to Impress Less: Introverts typically avoid flashy lifestyles. Lower social spending means more room for saving and investing.

2. Focused Time Equals Compounding Gains: Preferring solitude, introverts invest more time in reading, research, and reflection leading to smarter financial decisions and early investing habits.

3. Less Noise, More Strategy: Introverts aren’t swayed by market hype or peer pressure. Their calm nature makes them disciplined investors who think long-term.

4. They’re Calculated Risk-Takers: Introverts analyze before they act. This caution helps them avoid reckless spending or get-rich-quick traps.

5. Consistency Over Charisma: Introverts excel at automation, budgeting, and routine investing winning through systems, not spotlight.

In a world that celebrates loud success, introverts prove that quiet discipline can quietly compound into serious wealth.

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

Undervalued stocks
by - Sanjay

Market Capitalization >200 AND
Return on invested capital > 15 AND
Price to Earning  < 5

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. More details click here