AMC & product-related updates
Monthly investment activity through systematic investment plans remained strong, although inflows moderated slightly. According to AMFI data, SIP contributions stood at ₹29,845 crore in February 2026, compared with ₹31,002 crore in January, while the stoppage ratio rose to 76%.
Equity mutual funds continued to attract investor interest. Net inflows into equity schemes reached ₹25,965 crore in February, marking an 8.2% increase from the previous month, while the industry’s total assets under management climbed to ₹82.02 lakh crore. Large-cap, mid-cap, and small-cap categories recorded stronger inflows during the month.
Flows into debt-oriented mutual funds, however, declined significantly. Net inflows dropped to ₹42,106 crore in February, representing a 44% decline compared with January, although liquid funds alone recorded inflows of ₹59,077 crore.
Passive investment flows also weakened. Gold ETF inflows declined 78% in February, with net inflows of ₹5,254 crore, while silver ETFs recorded outflows of ₹826 crore. Overall inflows into passive schemes fell sharply to ₹13,879 crore.
Regulatory & policy developments
The National Stock Exchange has directed brokers to disclose and remit any excess securities transaction tax (STT) collected for FY24 and earlier years. Brokers have been instructed to transfer the excess amount along with 1% monthly interest for delays and inform the income tax department.
Market regulator SEBI continues to closely scrutinise IPO filings, with a recent study indicating that the regulator issues around 100 comments on average for each draft red herring prospectus (DRHP), nearly half of which relate to risk disclosures.
The Association of Mutual Funds in India (AMFI) is preparing to approach SEBI to discuss industry concerns regarding the proposed discontinuation of retirement and children-focused mutual fund schemes.
In another development, the government has relaxed foreign direct investment norms for countries sharing land borders with India, following a decision taken by the Union Cabinet.
Mutual fund & distribution signals
Retail investors and mutual funds are playing an increasingly prominent role in Indian equity markets. According to SEBI Chairman Tuhin Kanta Pandey, individual investors and mutual funds together now account for 36% of the free float market capitalisation of the Nifty 50 index.
Institutional investment activity remained mixed. Foreign institutional investors (FIIs) sold Indian equities worth ₹6,346 crore, while domestic institutional investors (DIIs) purchased shares worth ₹9,014 crore. For the year so far, FIIs have been net sellers of ₹78,868 crore, whereas DIIs have made net purchases worth ₹1,40,239 crore.
Markets & sectoral trends
Indian equity markets recovered during the session, with benchmark indices rising close to 1% and snapping a two-day losing streak. Gains were led by banking and automobile stocks, while broader market indices outperformed the benchmarks.
In the bond market, yields eased slightly as crude oil prices cooled following indications that the conflict involving Iran could move toward resolution. The benchmark 10-year government bond yield was trading near 6.68%.
However, analysts continue to caution that persistently volatile crude oil prices could limit the scope for an RBI rate cut. Economists suggest that prolonged oil volatility may put pressure on inflation, the current account deficit, and the rupee.
Geopolitical developments also continued to affect financial markets. The ongoing conflict in West Asia has already resulted in a ₹70,000 crore erosion in LIC’s portfolio value, with exposures to major banking stocks and Larsen & Toubro contributing significantly to the decline.
Corporate actions, capital flows & business developments
Several infrastructure and capital market developments were announced during the day. HG Infra Engineering secured a ₹401 crore railway infrastructure contract linked to the Anuppur thermal power project.
The Union Cabinet approved two railway expansion projects worth ₹4,474 crore in West Bengal and Jharkhand, aimed at increasing rail capacity in eastern India. In another connectivity initiative, the government cleared a ₹3,631 crore road project connecting Faridabad and South Delhi with the upcoming Jewar airport, including an elevated corridor.
State Bank of India is planning to issue infrastructure bonds in March after a 16-month gap, with a target of raising up to ₹100 billion.
In the capital markets space, Novus Loyalty’s IPO is scheduled to open for subscription on March 17, comprising a fresh issue of shares along with an offer-for-sale by existing investors.
Meanwhile, Blue Earth Capital announced a €27 million investment in Captain Fresh, aimed at supporting the company’s efforts to expand distribution and reduce seafood waste through improved supply chains.
Government sources also indicated that LPG production has increased by around 10%, with authorities monitoring supply dynamics amid geopolitical tensions that may disrupt shipping routes and energy trade flows.
Source: Moneycontrol, Business Standard, CNBC TV18
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