AMC & product-related updates
Private credit continues to gain traction within India’s alternative investment landscape. Industry estimates indicate that private credit AIFs typically target 14–18% net internal rates of return, reflecting their growing role in providing capital to mid-sized enterprises.
Regulatory & policy developments
The Central Board of Direct Taxes (CBDT) has notified rules for a simplified income tax framework, effective April 1. The revised structure reduces the number of sections from 819 to 536 and chapters from 47 to 23, removing redundant provisions and simplifying compliance.
SEBI Executive Director Manoj Kumar stated that recent changes related to total expense ratios are not intended to adversely impact mutual fund distributors. He suggested that the industry could explore alternative models such as performance-linked fee structures.
The International Financial Services Centres Authority (IFSCA) has increased oversight of capital market intermediaries operating in GIFT IFSC, reiterating its focus on compliance and strengthening regulatory standards.
Mutual fund & distribution signals
Individual investors continue to dominate mutual fund ownership in India, holding over 62% of total assets under management.
Market participants have also observed growing cross-border interest in Indian equities. More than 20 Russian funds have registered as FPIs, reflecting increasing global participation in domestic markets.
At the same time, industry experts highlighted that the Indian equity market continues to offer attractive valuation opportunities despite recent volatility.
Markets & sectoral trends
Indian equity markets closed higher on March 20, 2026, reversing losses from the previous session’s sharp decline. The recovery was aided by softer crude oil prices and a slight easing of geopolitical tensions in the Middle East. Investor sentiment showed signs of improvement during the session, though the upside remained limited due to ongoing foreign institutional selling and continued weakness in the rupee.
Currency pressures remain elevated, with the rupee touching an all-time low of around ₹93.48 against the US dollar, as the RBI is expected to adopt a more gradual approach to currency intervention.
Sectoral outlook remains mixed. Analysts at Kotak Institutional Equities and JM Financial indicated that private banks offer better valuation comfort, while the recent outperformance of PSU banks may moderate.
In real estate, weak NRI demand and higher interest rates could weigh on premium housing segments.
Energy markets continue to be a key risk factor. While oil supply disruptions may stabilise over time, analysts at Rystad Energy noted that LNG supply constraints could persist for an extended period, potentially impacting energy-intensive sectors.
Corporate actions, capital flows & business developments
Capital markets activity remains active with new listings in the pipeline. SBI Funds Management has filed draft papers for its IPO, with promoters planning to sell 20.37 crore shares through an offer-for-sale.
Another upcoming listing includes Polite Powertech, which has filed its DRHP with SEBI to raise funds through a public issue of 1.25 million equity shares.
In global developments, Tesla is planning a $2.9 billion investment in solar manufacturing equipment to build large-scale renewable energy capacity, reflecting growing investment in clean energy infrastructure.
In the aviation sector, maintenance, repair and overhaul (MRO) demand in India is projected to reach $5.7 billion by 2030, supported by fleet expansion. Estimates suggest India’s commercial aircraft fleet could exceed 1,800 aircraft, with narrow-body aircraft nearly doubling in size.
Efforts to strengthen international financial linkages are also underway. NSE leadership has proposed facilitating the entry of Russian banks into GIFT City, aimed at improving capital flows and enabling cross-border listings.
Source: Moneycontrol, Business Standard, CNBC TV18, Cafemutual, Financial Express
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