AMC & product-related updates
Debt fund flows reflected a more cautious allocation trend, with liquid funds accounting for a large portion of the inflows as investors preferred short-term parking of funds.
The specialised investment funds (SIF) segment is also gaining traction. According to ValueMetrics data, SIF assets approached ₹10,000 crore by February 2026, reaching ₹9,711 crore, compared with about ₹2,010 crore in October 2025. Hybrid long–short strategies accounted for a significant share of the inflows.
In the insurance segment, Shriram General Insurance launched a new health insurance policy featuring unlimited restoration of the sum insured, along with coverage for ambulance and air ambulance expenses up to the insured amount.
Motilal Oswal Wealth Management introduced a dedicated bonds investment platform, offering investors access to instruments such as government securities, PSU bonds and corporate bonds.
Regulatory & policy developments
The Securities and Exchange Board of India (SEBI) is evaluating a faster “login and launch” framework for alternative investment fund (AIF) schemes to simplify operational processes as the sector continues to expand. Commitments in the AIF industry are approaching ₹16 lakh crore, highlighting rapid growth in the space.
SEBI has also relaxed certification requirements for certain sales and client-facing personnel involved in research analyst activities, aiming to ease compliance burdens while maintaining regulatory supervision.
Separately, the regulator has emphasised the importance of valuation discipline within AIF portfolios, particularly as a growing number of AIF-backed companies prepare for public listings.
In another development related to capital markets, merchant bankers have begun pitching for roles in the long-awaited IPO of the National Stock Exchange (NSE) after the exchange received regulatory clearance earlier this year.
Meanwhile, operational hurdles such as stringent KYC requirements and higher compliance costs are reportedly slowing overseas investor participation in GIFT City funds, prompting authorities to explore measures including video-based KYC processes.
Mutual fund & distribution signals
Industry data indicates a continuing shift in the structure of Indian capital markets, with retail investors and domestic institutions playing a growing role.
At the same time, global uncertainties and geopolitical developments have introduced volatility across asset classes. The Indian Rupee weakened and closed at ₹92.04 against the US dollar, reflecting increased demand for the dollar amid external volatility.
Investors also appear to be adopting a cautious stance in fixed-income allocations, with liquid funds dominating flows within the debt mutual fund category.
Markets & sectoral trends
Indian equity markets experienced sharp selling pressure during the session, with benchmark indices declining significantly. Escalating tensions in the Middle East and fluctuations in global crude oil prices led to cautious investor positioning and triggered a broad-based market sell-off.
Banking stocks were among the major drags on the indices, with India’s three largest lenders together losing nearly ₹50,000 crore in market capitalisation during the trading session.
Despite near-term volatility, macroeconomic outlook assessments remain constructive. According to CRISIL, India’s economy could grow around 7.1% in FY27, assuming crude oil prices average between $75 and $80 per barrel and geopolitical tensions remain contained.
Corporate actions, capital flows & business developments
Infrastructure investment activity remained active across several sectors. Raajmarg Infra Investment Trust, backed by the National Highways Authority of India (NHAI), raised ₹1,728 crore from anchor investors ahead of its IPO, with the issue price band set between ₹99 and ₹100 per unit.
The Union government also approved additional funding of ₹1.51 trillion for the Jal Jeevan Mission, extending the programme until December 2028 to expand rural tap water access and strengthen monitoring infrastructure.
In the energy and infrastructure space, Adani Energy secured $500 million in bilateral financing from Apollo Global Management to support ongoing capital expenditure plans.
Corporate developments included KEC International expecting clearance of around ₹800 crore in Jal Jeevan Mission dues following the Cabinet’s funding support.
In the startup ecosystem, agri-tech firm Verdant Impact raised $3 million in seed funding to scale its AI-driven bovine genetics platform and expand into additional markets.
Meanwhile, XED Executive Development deferred its planned $12 million GIFT City IPO, citing market uncertainty arising from geopolitical tensions in the Middle East.
Real estate investment activity showed strong momentum, with investments in India rising 29%, making the country one of the fastest-growing property markets in the Asia-Pacific region.
Source: Cafemutual, Moneycontrol, Business Standard, CNBC TV18
Disclaimer: The content shared above is intended solely for general awareness and educational purposes for mutual fund and financial product distributors. It does not constitute investment advice, solicitation, or a recommendation of any kind. Investments in securities markets are subject to market risks, and distributors and investors should review all relevant scheme-related documents carefully before taking any investment decision.
