The OptiCast Vol. III
Optima's Quarterly Newsletter
April '26 - June '26 / 2nd Edition
Embedded Files
Chasing Returns: What Behavioural Economics tells us about India’s Small Cap Frenzy
Chasing Returns: What Behavioural Economics tells us about India’s Small Cap Frenzy
By Mahi Kumari
Over the past decade, India’s small cap segment went from being the investment your broker warned you about to the one everyone couldn’t stop talking about. What was once considered speculative was now mainstream, primarily due to increasing SIP participation, huge mutual fund inflows, and high media coverage. It was considered a perfect recipe for overnight wealth creation; until 2025 happened, and investors thereafter started receiving only a chunk of their "promised" profits. So what exactly went on here? Genuine opportunity recognition, or a classic case of narrative-driven optimism and herd behavior?
The FDI Paradox: Why Capital Flows into India but Doesn’t Stay
The FDI Paradox: Why Capital Flows into India but Doesn’t Stay
By Pakhee Dubey
India’s investment narrative is facing a striking contradiction. On one hand, it continues to attract robust Foreign Direct Investment (FDI), with gross inflows rising to $79.3 billion during April–January FY26, up from $69.2 billion in the previous year. On the other hand, this momentum has failed to translate into meaningful net gains, with net FDI standing at just $1.7 billion.
This divergence reveals a deeper structural issue: India may be successful in attracting capital, but it is struggling to retain it.
The New Inflation Story: Why Prices Are Not Falling as We Thought
The New Inflation Story: Why Prices Are Not Falling as We Thought
By Mukta Marodia
Inflation has been on the tip of everyone’s tongue for the past few years — economists, policymakers, and everyday consumers alike. From groceries and rent to fuel, prices have seemed to skyrocket overnight. However, with news that inflation is cooling, a lot of individuals are questioning themselves on why it does not feel less costly.
The answer lies in the realisation of a change in the inflation operation today.
Page updated
Report abuse