RBI Tightens Broker Funding Norms from April 2026: Impact on Stock Brokers

RBI Tightens Broker Funding Norms from April 2026: Impact on Stock Brokers and Capital Markets

New Regulatory Framework to Reshape Broker Funding

The Reserve Bank of India (RBI) has introduced sweeping amendments to funding and collateral norms that will come into effect from April 1, 2026. The revised framework significantly tightens rules governing broker financing, bank guarantees, and capital market exposure limits.

The move is aimed at strengthening systemic stability and curbing excessive leverage within the capital markets ecosystem. However, it may also increase operational costs and capital requirements for stock brokers.

Shift to 100% Secured Funding

One of the most notable changes is the requirement for fully secured funding. Going forward, brokers can only avail funding that is backed entirely by tangible collateral.

Previously, banks could structure a ₹100 bank guarantee with:

• ₹50 backed by fixed deposits, and
• ₹50 supported by unsecured instruments such as promoter or corporate guarantees.

Under the new norms, this flexibility has been eliminated. Promoter guarantees alone will no longer qualify as sufficient backing. This shift is expected to increase capital blockage and reduce leverage within brokerage operations.

Stricter Bank Guarantee and Collateral Rules

The amendment also tightens conditions for bank guarantees issued in favour of stock exchanges or clearing corporations.

Key Changes Include:

• A minimum 50% collateral requirement for bank guarantees.
• At least 25% of the collateral must be in cash.
• Equity shares used as collateral will attract a minimum 40% haircut.

This means that the valuation of pledged shares will be significantly discounted, reducing the effective borrowing power of brokers. As a result, bank guarantee costs are likely to rise.

Restrictions on Proprietary Trading Funding

The RBI has also imposed tighter restrictions on proprietary trading activities.

Banks will no longer be allowed to fund proprietary trading, except in limited cases such as:

• Market-making activities
• Certain debt warehousing functions

In addition, all such exposures will now be classified as capital market exposure. This classification means that banks’ overall capital market exposure limits will apply, potentially curbing their appetite for lending to brokers.

Continuous Collateral Monitoring and Margin Calls

The new framework introduces stricter monitoring requirements. Brokers must maintain collateral cover on a continuous basis.

Facility agreements must now explicitly include:

• Provisions for margin calls in case of collateral shortfall
• Ongoing monitoring of asset cover

This reduces flexibility for brokers during periods of market volatility and may increase short-term liquidity pressure.

What This Means for Stock Brokers

Overall, the amendment is expected to:

• Reduce system-wide leverage
• Increase capital requirements for brokers
• Raise bank guarantee costs
• Limit reliance on unsecured promoter guarantees

For well-capitalized brokerage firms, the transition may be manageable. However, smaller brokers with thinner capital buffers could face margin pressures.

For retail investors, the changes could result in a more resilient and transparent market structure. While short-term liquidity in certain segments may tighten, the long-term objective is to strengthen risk management and reduce systemic vulnerabilities.

With implementation scheduled for April 2026, brokers and financial institutions have a limited window to realign their funding structures and comply with the revised norms.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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KLA to Invest ₹3,600 Crore in Tamil Nadu for Global R&D Campus, 4,000 Jobs Planned

KLA to Invest ₹3,600 Crore in Tamil Nadu for Global R&D Campus, 4,000 Jobs Expected

In a significant boost to India’s semiconductor ambitions, US-based chip equipment major KLA has signed a memorandum of understanding (MoU) with the Tamil Nadu government to invest $400 million (approximately ₹3,600 crore) in Chennai. The investment will be directed toward setting up a state-of-the-art global research and development (R&D) and innovation campus.

The proposed facility marks a major milestone for Tamil Nadu’s growing semiconductor and electronics ecosystem and underscores India’s increasing importance in the global chip value chain.

12-Acre Global Innovation Hub in Chennai

The upcoming campus will be spread across 12 acres in Chennai and is expected to emerge as KLA’s flagship R&D center outside its global headquarters. Over time, the campus is planned to have a built-up capacity of up to 1.5 million square feet, making it one of the largest integrated semiconductor R&D facilities in the region.

According to state officials, once fully operational, the facility is expected to generate up to 4,000 high-skilled jobs. These roles will primarily cater to engineers, researchers, and technology professionals working in advanced semiconductor technologies.

Key Focus Areas of the Campus

The Chennai R&D center will focus on cutting-edge areas critical to the semiconductor ecosystem, including:

• High-performance computing (HPC)
• Process control engineering software
• AI-driven semiconductor innovation
• Advanced solutions for integrated circuits and chip packaging

This strategic focus aligns with the global semiconductor industry's shift toward automation, artificial intelligence integration, and precision process control.

Strengthening India’s Semiconductor Ecosystem

KLA is considered one of the leading players in semiconductor manufacturing design and R&D. The company develops advanced process control equipment and services that enable innovation in integrated circuits, packaging technologies, and printed circuit boards.

The decision to establish a major R&D campus in Chennai reflects growing investor confidence in India’s semiconductor policy framework and skilled talent pool. Tamil Nadu has been actively positioning itself as a semiconductor and electronics manufacturing hub through targeted industrial policies and infrastructure support.

For retail investors tracking India’s semiconductor push, this development is strategically important. While India is still in the early stages of chip fabrication capabilities, investments in design, research, and process engineering are critical building blocks for long-term industry competitiveness.

Employment and Economic Impact

The creation of up to 4,000 high-value technology jobs is expected to have a multiplier effect on the regional economy. Apart from direct employment, the campus could stimulate:

• Growth in ancillary technology services
• Increased demand for real estate and infrastructure
• Collaboration with local universities and research institutions
• Expansion of semiconductor-focused startups

With a potential built-up capacity of 1.5 million sq ft, the campus signals a long-term commitment rather than a short-term expansion strategy.

What This Means for Investors

India’s semiconductor narrative has been gaining traction over the past few years, supported by policy incentives and rising global demand for diversified supply chains. Large-scale investments such as this reinforce the country’s positioning as a strategic R&D destination.

For investors monitoring global semiconductor trends, KLA’s ₹3,600 crore commitment indicates:

• Confidence in India’s engineering talent pool
• Long-term R&D expansion plans in Asia
• Strengthening of India’s role in global semiconductor innovation

While the investment does not directly relate to chip fabrication, it strengthens the upstream ecosystem - particularly in process control and AI-driven semiconductor design — which are critical for advanced manufacturing capabilities worldwide.

As India aims to become a major player in electronics and semiconductor manufacturing, strategic R&D investments like this could play a pivotal role in accelerating technological self-reliance and export competitiveness.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Ola Electric narrows Q3 loss to Rs 487 crore

Ola Electric Q3 Results: Loss Narrows to Rs 487 Crore Despite 55% Revenue Decline

Ola Electric reported a narrower net loss for the December quarter (Q3FY26), even as revenue and vehicle deliveries witnessed a sharp year-on-year decline. The electric vehicle (EV) manufacturer is currently undergoing what it describes as a “structural reset,” focusing on long-term sustainability rather than short-term volume growth.

Key Financial Highlights

For the quarter ended December, the company posted a consolidated net loss of Rs 487 crore, improving from Rs 564 crore in the same period last fiscal year.

However, revenue from operations fell significantly by 55% YoY to Rs 470 crore, compared to the previous year’s corresponding quarter.

• Net Loss: Rs 487 crore (vs Rs 564 crore YoY)
• Revenue: Rs 470 crore (down 55% YoY)
• Adjusted EBITDA Loss: Rs 323 crore (vs Rs 494 crore YoY)
• Total Deliveries: 32,680 units (vs 84,029 units YoY)

The reduction in adjusted operating EBITDA loss to Rs 323 crore from Rs 494 crore last year reflects improved cost control and better operating leverage.

Automotive Segment Under Pressure

The automotive segment bore the brunt of the slowdown, with revenues plunging to Rs 467 crore from Rs 1,045 crore in the year-ago quarter. Meanwhile, the cell manufacturing business generated around Rs 9 crore in revenue during the quarter.

Deliveries dropped sharply to 32,680 units, compared to 84,029 units in the corresponding period last year. The company attributed the volume decline to strategic realignment and slower EV penetration growth in the market.

Strategic Reset and Operational Realignment

Management indicated that Q3FY26 marked a turning point, with the company prioritizing structural corrections over aggressive expansion. The retail footprint, cost base, and operating model were recalibrated to establish a sustainable business framework.

According to the company, this restructuring has resulted in:

• A structurally lower volume breakeven level
• Enhanced operating leverage
• Greater focus on long-term profitability

The management emphasized that the objective was to strengthen fundamentals rather than maximize short-term sales numbers.

Capex Phase Nears Completion

Ola Electric has invested approximately Rs 5,300 crore across manufacturing facilities, battery innovation, and research and development platforms. The company believes this scale of investment provides a structural competitive advantage in India’s EV ecosystem.

The heavy capital expenditure cycle is largely complete, with the final phase of its Gigafactory expected to be operational by March 2026. At present, the company’s manufacturing infrastructure supports:

• 1 million vehicles annually
• 6 GWh of cell capacity

Going forward, the focus will shift from capacity creation to revenue expansion. The company has outlined an ambitious medium-term revenue potential of Rs 15,000–20,000 crore over the next few years.

Addressing Service Challenges

The company acknowledged that gaps in service execution affected brand perception during the quarter. It clarified that these concerns were related to service infrastructure and operational execution rather than product quality.

An independent third-party survey reportedly showed 90% overall product satisfaction and strong repurchase intent, indicating sustained customer confidence in its offerings.

Outlook for Retail Investors

While the sharp revenue decline and delivery slowdown may weigh on short-term sentiment, the narrowing losses and improved operating metrics suggest progress in cost optimization. With capex largely behind it and capacity in place, the company’s next phase hinges on scaling revenues efficiently.

Investors will closely monitor demand recovery in the EV segment, execution on service improvements, and the company’s ability to convert installed capacity into sustained revenue growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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HUL Q3 Results FY26: PAT Falls 30% to Rs 2,118 Crore; Revenue Up 6%

HUL Q3 Results FY26: PAT Falls 30% to Rs 2,118 Crore; Revenue Grows 6%

FMCG major Hindustan Unilever Ltd (HUL) reported a mixed set of numbers for the third quarter of FY26, with profitability from continuing operations under pressure even as revenue growth remained steady.

The company posted a 30% year-on-year (YoY) decline in consolidated net profit from continuing operations at Rs 2,118 crore, compared to Rs 3,027 crore in the corresponding quarter last year.

However, overall profit for the quarter surged 121% YoY to Rs 6,603 crore, largely supported by one-time gains arising from portfolio transformation initiatives.

Revenue and Operating Performance

HUL’s revenue from continuing operations stood at Rs 16,441 crore, marking a 5.6% increase from Rs 15,556 crore in the same period last year. The growth was primarily volume-led, reflecting improving consumer demand across categories.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations rose 3% YoY to Rs 3,788 crore. However, the EBITDA margin declined by 70 basis points to 23.3%, indicating some cost pressures. (One basis point equals 0.01%).

For the quarter, the company reported:

• Underlying Sales Growth (USG): 5%
• Underlying Volume Growth (UVG): 4%

The performance suggests gradual improvement in consumption trends, driven mainly by higher volumes rather than pricing.

Segment-Wise Performance

Home Care

The Home Care segment strengthened its market leadership and delivered 3% USG, supported by mid-single-digit volume growth. Pricing actions taken earlier continued to weigh on overall pricing, creating a negative price impact.

Beauty & Wellbeing

This segment posted 6% USG with low-single-digit volume growth. Hair Care remained a key growth driver, clocking double-digit volume expansion. Premium brands such as Dove and TRESemmé contributed significantly to performance.

Personal Care

Personal Care recorded 6% growth, led by double-digit expansion in premium Skin Cleansing and Oral Care. Brands like Pears and Dove supported mid-single-digit growth in Skin Cleansing, while the Bodywash portfolio continued to gain market share.

Foods

The Foods portfolio delivered 6% USG, backed by high-single-digit volume growth. Tea volumes grew in mid-single digits, but revenue growth remained muted due to price reductions amid a deflationary commodity environment. Coffee maintained strong double-digit growth, supported by both pricing and volume expansion.

Management Commentary and Outlook

The company highlighted early signs of demand recovery, supported by stable macroeconomic conditions and favourable policy measures. Management expects FY27 to outperform FY26, driven by ongoing portfolio optimisation and channel transformation initiatives.

HUL is also focusing on strengthening emerging distribution channels, including quick commerce, while investing in premium and high-growth categories to enhance brand desirability.

Brokerage View and Stock Reaction

Following the Q3 results, a leading global brokerage maintained a Buy rating on the stock with a 12-month target price of Rs 2,800. The valuation is pegged at 55x Q5–Q8 EPS, broadly in line with the company’s five-year average price-to-earnings multiple.

Despite steady revenue growth, the stock reacted negatively to margin pressures and profit decline. Shares of HUL traded 3% lower at Rs 2,396 after the earnings announcement.

Key Takeaways for Investors

• Revenue growth remains stable at 5.6% YoY
• Volume-led growth indicates improving consumption trends
• Margins under pressure with 70 bps contraction
• One-off gains boosted overall reported profit
• Management optimistic about stronger FY27 performance

Retail investors should closely monitor margin trajectory, commodity price trends, and demand recovery momentum in the coming quarters to assess sustainable earnings growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Govt to sell 3% stake in BHEL at Rs 254 via OFS

Govt to Sell 3% Stake in BHEL via OFS at Rs 254 Floor Price; May Raise Up to Rs 4,422 Crore

Government Announces Stake Sale in BHEL

The Government of India has announced plans to divest up to 3% stake in Bharat Heavy Electricals Limited (BHEL) through an Offer for Sale (OFS). The floor price for the issue has been fixed at Rs 254 per share, offering investors an opportunity to participate in the stake sale of the state-owned engineering major.

The base offer comprises more than 10.44 crore shares, representing 3% of the company’s total equity capital. Additionally, the government has retained an oversubscription option to sell another 6.96 crore shares, equivalent to 2% equity. If this option is fully exercised, the total divestment could rise to 17.41 crore shares, amounting to a 5% stake in BHEL.

Fundraising Potential and OFS Details

At the specified floor price of Rs 254 per share, the government is expected to raise approximately Rs 2,653 crore from the 3% stake sale. If the additional 2% oversubscription option is exercised, the total proceeds could increase to around Rs 4,422 crore.

The OFS will be conducted through a dedicated window on both the BSE and NSE platforms. The sale is scheduled to take place during regular trading hours, beginning at 9:15 am and closing at 3:30 pm on Wednesday.

This move aligns with the government’s broader divestment strategy aimed at improving public sector efficiency and raising capital for fiscal management.

BHEL Share Price Performance

On the day of the announcement, BHEL shares closed at Rs 275.90, marking a gain of Rs 1.25 or 0.46% over the previous closing price. The stock traded comfortably above the OFS floor price, which may attract investor interest given the discount implied by the offer price.

Market participants will closely monitor subscription levels, especially from institutional investors, as the pricing and demand dynamics could influence short-term stock movement.

Strong Q3 FY26 Financial Performance

The stake sale announcement follows a robust December quarter performance by BHEL, reflecting a significant operational turnaround.

Net Profit Surges Over 200%

BHEL reported a net profit of Rs 382 crore for the quarter ended December 2025, compared to Rs 125 crore in the same period last year. This represents a sharp 206% year-on-year increase, driven by improved execution and operating leverage.

Revenue Growth and Operational Highlights

Revenue from operations rose 16% year-on-year to Rs 8,473 crore, up from Rs 7,277 crore in the corresponding quarter of the previous year. Total income, including other income, stood at Rs 8,700 crore, compared with Rs 7,393 crore a year ago.

The company benefited from:

• Improved project execution timelines
• A stronger and expanding order pipeline
• Better cost management and operating efficiency

Cost Structure and Margins

Total expenses for the quarter increased to Rs 8,188 crore, compared to Rs 7,224 crore in the year-ago period. Key cost components included:

• Cost of materials and services: Rs 6,059 crore
• Employee benefit expenses: Rs 1,531 crore

Notably, finance costs declined sequentially to Rs 182 crore from Rs 195 crore in the September quarter, providing additional support to profitability.

What This Means for Investors

The government’s decision to divest stake comes at a time when BHEL is demonstrating improved financial performance. For retail investors, the OFS presents an opportunity to buy shares at a predefined floor price, potentially at a discount to prevailing market levels.

However, investors should evaluate:

• Short-term price volatility post-OFS
• Long-term growth visibility in the capital goods sector
• Execution strength and order inflows in upcoming quarters

With a stronger earnings trajectory and continued policy support for infrastructure and energy projects, BHEL remains a key PSU stock to watch in the current market environment.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Equity Mutual Fund Inflows Fall 14% in January 2026; Debt and Hybrid Funds See Strong Recovery

Equity Mutual Fund Inflows Drop 14% in January 2026 as Debt and Hybrid Funds Gain Momentum

Mutual fund investment trends for January 2026 reflected a mixed picture across asset classes. While equity mutual funds witnessed a noticeable decline in inflows, debt and hybrid funds staged a strong comeback, indicating a shift in investor preferences amid changing market conditions.

Equity Mutual Funds See Moderation in Inflows

Equity mutual fund inflows declined by 14% month-on-month to Rs 24,028 crore in January 2026, compared with Rs 28,054 crore in December 2025. On a year-on-year basis, the slowdown was sharper, with inflows falling 39% from Rs 39,687 crore recorded in January 2025.

Despite the overall dip, investor interest remained strong in select equity categories:

• Flexicap funds led inflows with Rs 7,672 crore, retaining their position as the most preferred equity category.
• Midcap funds attracted Rs 3,185 crore, while large & mid-cap funds received Rs 3,181 crore.
• Smallcap funds saw inflows of Rs 2,942 crore.

However, ELSS funds reported outflows of Rs 593 crore, reflecting some profit booking and tax-related adjustments by investors.

Category-wise Monthly Trends

On a month-on-month basis, focused funds recorded a strong 47% rise in inflows, increasing to Rs 1,556 crore. Largecap funds and sectoral/thematic funds also posted growth of 28% and 10%, respectively.

In contrast, midcap and smallcap funds witnessed a cooling of interest, with inflows declining 24% and 23%, respectively.

Debt Funds Rebound After Two Months of Outflows

Debt mutual funds made a strong recovery in January 2026, registering inflows of Rs 74,827 crore after two consecutive months of heavy redemptions. In November and December 2025, the category had seen combined outflows of Rs 1.58 lakh crore.

However, on a year-on-year basis, debt fund inflows were still 42% lower than the Rs 1.28 lakh crore recorded in January 2025.

• Overnight funds topped the chart with inflows of Rs 46,280 crore.
• Liquid funds and money market funds attracted Rs 30,681 crore and Rs 12,763 crore, respectively.
• Corporate bond funds were the laggards, witnessing outflows of Rs 11,472 crore.

Hybrid Funds Witness Sharp Growth

Hybrid mutual funds saw a significant surge in investor interest. Monthly inflows jumped 61% to Rs 17,356 crore in January, compared with Rs 10,755 crore in December. On a yearly basis, inflows nearly doubled, rising 98% from Rs 8,767 crore.

Multi-asset allocation funds led the category with inflows of Rs 10,485 crore, followed by arbitrage funds at Rs 3,293 crore. Arbitrage funds recorded an exceptional 2,507% MoM jump in inflows.

Meanwhile, equity savings funds and conservative hybrid funds saw inflows decline by 81% and 35%, respectively.

Passive Funds and Gold ETFs Shine

Other schemes, including passive funds such as ETFs and index funds, recorded a 50% rise in inflows to Rs 39,954 crore. Gold ETFs stood out, attracting Rs 24,039 crore, marking a 106% month-on-month increase.

Additionally, fund-of-funds investing overseas saw a 501% jump in inflows to Rs 881 crore.

Overall Industry Snapshot

Total inflows into open-ended schemes stood at Rs 1.56 lakh crore in January, a sharp turnaround from an outflow of Rs 66,532 crore in December. Assets under management rose 1% month-on-month to Rs 80.76 lakh crore.

During the month, 12 new mutual fund schemes were launched, collectively mobilising Rs 1,939 crore, with money market funds contributing the most.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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FPIs turn net buyers in February

FPIs Turn Net Buyers in February, Invest Over ₹8,100 Crore in First Week

Foreign portfolio investors (FPIs) have turned net buyers in Indian equities in February after three straight months of heavy selling. During the first week of the month, FPIs infused more than ₹8,100 crore into domestic stocks, supported by improving global risk sentiment and optimism surrounding an interim trade framework between India and the United States.

FPI Investment Trend in February

As per depository data, FPIs invested a total of ₹8,129 crore in Indian equities till February 6. This marks a notable shift in foreign investor behaviour, following sustained outflows in the preceding months.

In comparison, FPIs had withdrawn:

• ₹35,962 crore in January
• ₹22,611 crore in December
• ₹3,765 crore in November

The renewed inflows suggest a gradual return of confidence among overseas investors after a prolonged period of caution.

2025 Saw Heavy Foreign Selling

Despite the recent turnaround, overall foreign investment sentiment remains mixed. In calendar year 2025, FPIs pulled out a net ₹1.66 lakh crore (around $18.9 billion) from Indian equities, making it one of the weakest years for foreign capital flows.

The large-scale selling was triggered by several global and domestic factors, including volatile currency movements, persistent global trade tensions, concerns over potential US tariff actions, and stretched equity valuations in the Indian market.

What Is Driving the Recent Buying?

Market experts believe the recent buying reflects an improvement in overall risk appetite and renewed confidence in India’s medium-term growth prospects. Easing global uncertainties, stability in domestic interest rate expectations, and optimism around India–US trade and policy developments have collectively supported sentiment.

This shift stands in sharp contrast to January, when FPIs exited Indian markets amid elevated US bond yields and a broader global risk-off environment.

Outlook Remains Cautiously Optimistic

While the initial inflows are encouraging, market participants remain cautious. Further FPI buying could materialise if corporate earnings continue to show resilience and global trade tensions remain under control.

However, certain challenges could cap upside potential. Persistent weakness in the rupee, relatively high market valuations, and possible shifts in US economic or trade policy may act as headwinds for sustained foreign inflows.

Key Market Triggers to Watch This Week

Analysts note that several factors will influence market sentiment in the coming week, including:

• Domestic and global inflation data
• Trading activity of foreign investors
• Global market cues and geopolitical developments
• Ongoing Q3 corporate earnings announcements

On the earnings front, companies such as Ashok Leyland, ONGC, Bajaj Electricals, and Eicher Motors are scheduled to report their quarterly results.

India–US Trade Deal Boosts Sentiment

Investor confidence has also been lifted by the announcement of an interim trade agreement framework between India and the US. Under the proposed arrangement, the US will reduce tariffs on Indian goods to 18% from the earlier 50%.

In return, India will eliminate or lower import duties on all US industrial goods and a wide range of agricultural and food products, including soybean oil, tree nuts, fresh and processed fruits, animal feed grains, wine, and spirits. The agreement is expected to support bilateral trade and improve the overall investment climate.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Q3 Results Next Week: Titan, M&M, HUL, ONGC, Coal India Earnings in Focus

Q3 Results Next Week: Titan, M&M, BSE, HUL, ONGC, Coal India and Other Key Earnings to Watch

The upcoming week is set to be a busy one for investors as several heavyweight companies are scheduled to announce their financial results for the quarter ended December 31, 2025 (Q3 FY26). Earnings from sectors such as FMCG, automobiles, oil & gas, metals, pharmaceuticals, infrastructure, and financial services will offer important cues on corporate performance and market direction.

Stocks like Titan Company, Mahindra & Mahindra, Hindustan Unilever, ONGC, Coal India, BSE, and many others will be closely tracked by market participants for insights into demand trends, margin pressures, and management outlook.

Key Companies Announcing Q3 Results Next Week

A diverse set of companies, ranging from large-cap leaders to mid- and small-cap players, will release their earnings. Apart from headline names, results from companies such as Grasim Industries, Britannia Industries, Divi’s Laboratories, Hindalco Industries, Hindustan Aeronautics, and Info Edge India are also expected to influence sectoral sentiment.

Investors will be particularly focused on:

• FMCG companies for rural demand recovery and margin stability
• Automobile makers for volume growth and export trends
• Oil & gas PSUs for realizations, subsidies, and global crude impact
• Metals and mining firms for commodity price movements
• Pharma companies for US market performance and regulatory updates

Q3 Results Schedule: Day-Wise List

February 9, 2026

Key companies reporting results include BSE, Zydus Lifesciences, Aurobindo Pharma, GlaxoSmithKline Pharmaceuticals, KPR Mill, Navin Fluorine International, Cholamandalam Financial Holdings, Amber Enterprises India, The Ramco Cements, Pfizer, Bata India, and several others.

February 10, 2026

Major names scheduled include Titan Company, Eicher Motors, Britannia Industries, Grasim Industries, Samvardhana Motherson International, Oil India, Apollo Hospitals Enterprises, United Breweries, Jubilant FoodWorks, Escorts Kubota, and more.

February 11, 2026

This day will see results from Mahindra & Mahindra, Divi’s Laboratories, Ashok Leyland, LG Electronics India, Lenskart Solutions, Patanjali Foods, Bayer CropScience, Amara Raja Energy & Mobility, among others.

February 12, 2026

Important earnings announcements include Hindustan Unilever, ONGC, Coal India, Hindalco Industries, Hindustan Aeronautics, Muthoot Finance, Bharat Forge, Lupin, Biocon, CRISIL, and several additional companies.

February 13, 2026

Companies such as Torrent Pharmaceuticals, Alkem Laboratories, NBCC (India), Ipca Laboratories, BASF India, KFin Technologies, Indigo Paints, and others will declare their Q3 numbers.

February 14, 2026

The earnings season concludes with results from Ahluwalia Contracts India, Lux Industries, PTC India, Pennar Industries, Rane Holdings, Shriram Properties, and a host of small-cap firms.

What Investors Should Watch

With a packed earnings calendar, market volatility may increase in individual stocks. Investors should focus on revenue growth, operating margins, profit trends, and management commentary to assess the sustainability of earnings and future growth prospects.

Long-term investors may look for fundamentally strong companies delivering consistent performance, while short-term traders may track result-based price movements.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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NSE Board Approves IPO via OFS Route, Key Details for Investors

NSE Board Clears IPO via Offer-for-Sale Route: What It Means for Investors

The board of the National Stock Exchange (NSE), India’s largest stock exchange by trading volumes and transaction count, has approved its long-awaited initial public offering (IPO). This landmark decision marks a significant step toward listing one of the country’s most influential financial market institutions.

According to the board’s decision, the NSE IPO will be executed entirely through the offer-for-sale (OFS) route. This means that no fresh equity will be issued by the exchange, and the offering will instead allow existing shareholders to partially dilute their holdings by selling shares to the public.

IPO Structure and Key Highlights

The approval by the NSE board brings clarity to the structure of the proposed public issue, which has been under discussion for several years. By choosing the OFS route, the exchange aims to provide liquidity to current investors without altering its capital base.

• The IPO will be a pure offer-for-sale with no fresh issue component.
• Proceeds from the IPO will go to selling shareholders, not the exchange.
• The move is expected to enhance transparency and corporate governance.

Market participants view this development as a major milestone for India’s capital markets, as the listing of the NSE could unlock significant value and broaden investor participation.

Major Shareholders in the NSE

At present, the shareholding structure of the NSE is dominated by large institutional investors. Life Insurance Corporation of India (LIC) is the single largest shareholder, holding around 10% stake in the exchange. This is followed by the SBI group, which collectively owns approximately 7.6%.

Several other domestic and foreign institutional investors also hold minority stakes. The OFS-based IPO is expected to give some of these shareholders an opportunity to monetize part of their investments after years of limited liquidity.

Five-Member Panel to Oversee IPO Process

To ensure smooth execution of the listing process, the NSE board has constituted a dedicated panel comprising board members and senior leadership. This committee will oversee regulatory coordination, appointment of intermediaries, and overall preparedness for the public issue.

The panel includes:

• Tablesh Pandey
• Srinivas Injeti
• Mamata Biswal
• Abhilasha Kumari
• G Sivakumar
• Ashishkumar Chauhan

The committee’s formation signals the exchange’s intent to move decisively toward listing, subject to regulatory approvals and market conditions.

Why the NSE IPO Matters

The listing of the NSE is expected to be a transformational event for Indian financial markets. As a market infrastructure institution, the exchange plays a central role in equity, derivatives, and debt trading across the country.

For retail investors, the IPO could provide a rare opportunity to invest in a core financial institution with a strong market position and robust trading ecosystem. From a broader perspective, the listing may also improve governance standards and public disclosure practices at the exchange.

While timelines and valuation details are yet to be disclosed, investor focus will remain on regulatory clearances, market sentiment, and the final offer size.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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RBI Keeps Repo Rate at 5.25%, Maintains Neutral Stance Amid Growth Optimism

RBI Keeps Repo Rate Unchanged at 5.25%, Maintains Neutral Policy Stance

Monetary Policy Decision for FY26

The Reserve Bank of India (RBI) on Friday decided to keep the policy repo rate unchanged at 5.25%, as the six-member Monetary Policy Committee (MPC) concluded its final bi-monthly meeting for the financial year 2025–26. The central bank also retained its neutral policy stance, signaling a balanced approach amid evolving economic conditions.

This decision was largely in line with market expectations, as policymakers continue to monitor inflation trends, global developments, and domestic growth indicators before taking further action.

Policy to Be Guided by Revised Inflation Data

RBI Governor Sanjay Malhotra stated that monetary policy decisions for the full financial year beginning April will be guided by new inflation data based on the revised GDP series, which is expected to be released later this month.

According to the Governor, the upcoming data will provide a clearer picture of price behavior and macroeconomic conditions, enabling the central bank to better assess inflationary pressures and growth dynamics.

Focus on Data-Driven Decisions

Malhotra emphasized that the revised data will help the RBI fine-tune its future policy actions. The central bank remains cautious and prefers to rely on updated economic indicators before making any changes to interest rates.

Optimism on Growth Outlook

Striking an optimistic tone, the RBI Governor highlighted positive developments on the trade front. He noted that recent and upcoming international trade agreements are expected to support India’s economic momentum.

“With the signing of the India–EU trade deal and the US trade agreement in sight, growth momentum is likely to be sustained for a longer period,” Malhotra said, indicating confidence in the medium-term growth outlook.

Liquidity Management Remains a Priority

The RBI reaffirmed its commitment to proactive liquidity management. The Governor stated that the central bank would continue to ensure adequate liquidity in the banking system to support productive sectors of the economy.

This approach aims to balance credit availability with financial stability, especially at a time when investment demand and consumption trends are closely linked to broader global conditions.

Stability in Government Bond Yields

The MPC also observed that government security (G-sec) yields have shown signs of stability over the past eight months. These yields have broadly tracked global bond market trends, reflecting improved alignment between domestic and international financial conditions.

Stable bond yields are seen as a positive signal for financial markets, helping contain borrowing costs and supporting orderly market functioning.

Key Takeaways for Investors

• Repo rate remains unchanged at 5.25%
• RBI continues with a neutral monetary policy stance
• Future decisions to depend on revised inflation and GDP data
• Positive outlook on growth driven by trade agreements
• Liquidity support and stable bond yields remain focus areas

Overall, the RBI’s latest policy decision reflects a cautious yet optimistic approach, balancing inflation management with growth support as the economy navigates a changing global environment.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Regulator Orders Probe into IndiGo Over Unfair Business Practices

CCI Orders Probe into IndiGo Over Alleged Unfair Business Practices

India’s aviation sector is under regulatory scrutiny after the Competition Commission of India (CCI) ordered a detailed investigation into alleged unfair business practices by IndiGo. The decision comes nearly two months after the airline carried out large-scale flight cancellations following non-compliance with mandated pilot flying time norms.

The regulator has formed a prima facie view that IndiGo holds a dominant position in India’s domestic passenger aviation market and that certain actions taken by the airline may have adversely impacted both consumers and competition.

Why the CCI Ordered the Investigation

The case originated from a complaint filed by a Bengaluru-based passenger whose flight scheduled in early December last year was abruptly cancelled. According to the complaint, while alternative flights were available, they were offered only at significantly higher fares. The passenger alleged that this amounted to overcharging enabled by IndiGo’s dominant market position.

IndiGo challenged the allegations and also questioned whether the competition regulator had jurisdiction over the matter. However, the CCI rejected this argument at the preliminary stage and ordered a comprehensive probe.

Market Dominance Under the Lens

In its detailed order, the CCI highlighted several factors supporting its view that IndiGo enjoys a dominant position in the relevant market. These include its consistently high market share, extensive route network, and significantly larger fleet size compared to competitors.

• 64% domestic market share in 2025
• Exclusive operations on over 330 routes
• Fleet size of more than 400 aircraft

By comparison, the Air India group accounted for around 27% of the domestic market with a fleet of approximately 191 aircraft. Smaller carriers such as Akasa and other regional airlines together held less than 10% market share.

Concerns Over Flight Cancellations

The regulator took a serious view of IndiGo’s decision to cancel thousands of flights, which represented a substantial portion of scheduled capacity. According to the CCI, this move may have effectively reduced supply in the market during periods of high demand.

The order observed that such cancellations could create an artificial scarcity of seats, limiting consumer access to air travel. For passengers with existing bookings, last-minute cancellations left little choice but to either accept refunds or book alternative flights at much higher prices.

Impact on Passengers and Competition

The CCI noted that IndiGo’s dominant position meant passengers were effectively “locked in” and lacked viable alternatives when disruptions occurred. This situation, the regulator said, could amount to restricting the provision of services and may have caused an appreciable adverse effect on competition in India.

As a result, the Commission concluded that there is sufficient ground to believe that provisions of competition law may have been violated, warranting a deeper investigation by its Director General.

What This Means for the Aviation Sector

The probe is being closely watched by investors and industry participants, as it could have wider implications for pricing practices, capacity management, and consumer protection in India’s rapidly consolidating aviation market. Any adverse findings could lead to penalties or directives that may influence how airlines manage operations during disruptions.

For now, the investigation marks a significant regulatory intervention in the airline industry, reinforcing the message that market dominance comes with added responsibility toward consumers and fair competition.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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IT Stocks Slide as AI Competition Triggers Global Tech Selloff

IT Stocks Tumble as AI Competition Fears Trigger Global Tech Selloff

Indian IT sector mirrors Wall Street weakness

Indian information technology stocks witnessed a sharp selloff in early trade on February 4, tracking a steep decline in global technology shares. Concerns that rapid advances in artificial intelligence could intensify competition and disrupt traditional software and services businesses rattled investor sentiment across markets.

The selloff dragged the Nifty IT index down nearly 6% to around 36,393.70 in early trading, making it the worst-performing sectoral index on the benchmarks. Heavyweight IT stocks were among the top losers on both the Sensex and the Nifty during the morning session.

Major IT stocks see deep cuts

Several frontline and mid-tier IT companies faced heavy selling pressure. Shares of Persistent Systems, LTI Mindtree, Coforge, and Infosys declined by more than 6% each in early trade. Other large-cap names such as Tata Consultancy Services, HCL Technologies, Tech Mahindra, and Mphasis were down close to 6%.

Wipro also slipped over 4%, while Info Edge, the parent company of a leading online recruitment platform, dropped nearly 5% amid renewed worries about job demand and spending in the technology services space.

What triggered today’s IT stock crash?

The sharp fall in Indian IT shares followed a weak overnight session on Wall Street, where technology stocks ended significantly lower. Investor concerns resurfaced after a leading artificial intelligence developer introduced new tools that expand the capabilities of its AI chatbot into professional domains such as legal work, sales, marketing, and data analysis.

Market participants fear that such developments could accelerate automation across knowledge-based services, increasing competition and putting pressure on traditional software and IT service providers. These sectors were earlier seen as long-term beneficiaries of the AI boom, but sentiment has now turned cautious.

Analysts believe the launch signals intensifying competition in areas that have historically driven revenue growth for software and IT services companies. This perception has led investors to reassess valuations, especially for firms trading at premium multiples.

Global tech stocks under pressure

The weakness was not limited to Indian markets. Several global technology heavyweights also saw notable declines. Shares of leading chipmakers and software giants fell between 1% and 3%, while enterprise software and digital services firms recorded losses of up to 7% in a single session.

The tech-heavy Nasdaq index declined over 1.4%, reflecting broad-based selling across the sector. The pullback came ahead of key earnings announcements from major global technology companies, adding to short-term volatility.

Outlook for Indian IT stocks

Market experts caution that Indian IT stocks may remain under pressure in the near term. High valuations, coupled with uncertainty around global technology spending and the disruptive impact of AI, could limit the scope for a sharp rebound.

Some strategists note that while artificial intelligence presents long-term opportunities, the transition phase may be challenging as clients reassess budgets and vendors adapt to new competitive dynamics. As a result, investors may prefer to stay selective and focus on companies with strong balance sheets, diversified revenue streams, and clear AI strategies.

For now, global cues and developments in the AI space are likely to continue driving sentiment in IT stocks, keeping volatility elevated.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Finance Ministry May Raise FDI Limit in Public Sector Banks to 49%

Finance Ministry Considers Raising FDI Limit in Public Sector Banks to 49%

The Finance Ministry is evaluating a proposal to raise the foreign direct investment (FDI) limit in public sector banks (PSBs) to 49%, up from the current cap of 20%. The move is aimed at strengthening the capital base of state-owned lenders and supporting their long-term growth plans.

According to officials, discussions are currently underway, with inter-ministerial consultations in progress. The proposal reflects the government’s broader strategy to ensure that public sector banks remain well-capitalised as credit demand expands across the economy.

Why the FDI Cap Matters for PSBs

At present, public sector banks face a much lower FDI ceiling compared to their private sector counterparts. While private banks are allowed to receive up to 74% foreign investment, PSBs are restricted to just 20%. This difference limits the ability of state-run banks to tap global capital pools.

If approved, the proposed hike to 49% would bring PSBs closer to private banks in terms of investment flexibility, potentially attracting long-term foreign investors and easing pressure on government finances.

FDI Rules: Public vs Private Banks

• Public sector banks: Current FDI cap at 20%, proposal to raise it to 49%
• Private sector banks: FDI up to 49% through the automatic route
• Beyond 49% to 74%: Requires government approval in private banks

Capital Raising and Government Shareholding

Officials noted that the Union government’s shareholding in 12 public sector banks has not reduced in terms of the number of shares since 2020. However, the percentage holding has declined in some lenders due to capital raised through fresh share issuance.

Collectively, PSBs have raised around Rs 45,000 crore through various routes such as qualified institutional placements (QIP) and offers for sale. Looking ahead, banks are expected to mobilise an additional Rs 45,000–50,000 crore in the next financial year, in line with their growth trajectory.

Strong Growth Outlook for Public Sector Banks

The growth outlook for PSBs remains robust. Public sector banks are projected to double their asset size over the next five years, supported by improved balance sheets and rising credit demand.

As of the end of September 2025, the combined assets of public sector banks stood at approximately Rs 261 lakh crore, highlighting their critical role in India’s financial system.

IDBI Bank Disinvestment Update

On the strategic disinvestment front, the government is moving ahead with the privatisation of IDBI Bank. Financial bids are expected to be invited soon as part of the sale of a 60.72% stake.

This includes 30.48% held by the government and 30.24% owned by a public sector financial institution. The divestment process has already seen multiple expressions of interest, with prospective bidders receiving regulatory clearances.

Need for Large, Globally Competitive Banks

On sector consolidation, officials reiterated that India requires three to four large banks capable of supporting the country’s expanding economy. Stronger capital bases and selective consolidation are seen as key to building globally competitive lenders.

If implemented, the proposed FDI limit hike could mark a significant step toward strengthening public sector banks and reducing the government’s future capital infusion burden.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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US Cuts Tariffs on India to 18%, India to End Russian Oil Imports

US Cuts Tariffs on India to 18% as New Trade Deal Reshapes Energy and Markets

The United States and India have reached a significant trade agreement that reduces US tariffs on Indian goods to 18%, down sharply from earlier elevated levels. The deal marks a major reset in bilateral trade relations and is expected to have wide-ranging implications for Indian exporters, global energy flows, and financial markets.

Key Highlights of the US–India Trade Agreement

Under the newly announced arrangement, Washington has agreed to roll back punitive duties imposed on Indian imports, while New Delhi has committed to easing trade barriers and restructuring its crude oil sourcing strategy.

• US tariffs on Indian goods reduced to 18%
• Removal of an additional 25% punitive duty linked to Russian oil purchases
• India to significantly scale down imports of Russian crude
• Increased purchases of energy, technology, and agricultural goods from the US

Energy Shift: India to Move Away from Russian Oil

A crucial element of the agreement involves India ending its dependence on discounted Russian oil. Over the past few years, India had increased Russian crude imports to reduce costs, especially after global sanctions disrupted traditional supply chains.

As part of the new understanding, India will instead source oil from the United States and may also explore supplies from Venezuela. This shift is aimed at diversifying energy imports while aligning more closely with US strategic interests.

Recent data already indicates a slowdown in Russian oil purchases. Imports, which were around 1.2 million barrels per day in January, are projected to fall to nearly 1 million bpd in February and further to 800,000 bpd in March.

Massive Import Commitments from the United States

Beyond energy, India has committed to buying over $500 billion worth of goods from the US over time. These purchases are expected to span multiple sectors, including:

• Energy products such as crude oil and gas
• Advanced technology and defense-related equipment
• Agricultural commodities and food products

This commitment is likely to deepen economic ties between the two nations while providing US exporters with long-term demand visibility.

Stock Markets React Positively

Financial markets responded swiftly to the announcement. US-listed shares of major Indian companies surged, reflecting renewed investor confidence after months of trade-related uncertainty.

Technology and banking stocks led the rally, while India-focused exchange-traded funds also posted strong gains. The positive reaction comes after Indian equities had suffered sustained foreign investor outflows, making them among the weakest performers in emerging markets this year.

Why This Deal Matters for India

India relies on imports for nearly 90% of its crude oil needs. While cheaper Russian oil had helped contain costs, escalating trade pressure from the US created risks for exports and capital markets.

The new agreement offers immediate tariff relief for Indian manufacturers and exporters, potentially improving competitiveness in the US market. At the same time, it signals a strategic realignment in energy sourcing that could influence global oil trade dynamics.

Outlook Ahead

The US–India trade deal represents a turning point after months of tense negotiations. Lower tariffs, stronger trade flows, and renewed investor confidence could provide a much-needed boost to Indian markets. However, the long-term impact will depend on how smoothly India manages its energy transition and executes its large-scale import commitments.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Budget 2026: Sovereign Gold Bond Capital Gains Exemption Limited to Original Subscribers

Sovereign Gold Bond Tax Rule Change in Budget 2026: Capital Gains Exemption Restricted

The Union Budget 2026 has proposed a significant change in the taxation framework for Sovereign Gold Bonds (SGBs). Under the new proposal, the long-standing capital gains tax exemption on SGBs will now be available only to a limited category of investors.

According to the Budget announcement, the exemption will apply only if the bonds are subscribed at the time of the original issue and held continuously until maturity. This marks a departure from the earlier understanding, where investors enjoyed capital gains tax exemption on redemption regardless of how the bond was acquired.

What Has Changed in the SGB Taxation Rule?

The revised proposal aims to clarify and standardise the tax treatment of Sovereign Gold Bonds across all issuances. As per the Budget 2026 documentation, capital gains exemption will be granted only when:

• The investor subscribes to the SGB during the original issuance by the Reserve Bank of India.
• The bond is held without interruption until redemption at maturity.

This clarification has been incorporated through a proposed amendment to the Income-tax Act, 2025. The objective is to remove ambiguity surrounding tax benefits for bonds purchased via transfers or the secondary market.

Impact on Secondary Market Investors

The proposal is expected to directly impact investors who bought Sovereign Gold Bonds from the secondary market. Earlier, many investors assumed that holding SGBs till maturity would automatically make the capital gains tax-free.

Under the new rule, this benefit will no longer apply to bonds acquired through purchase or transfer after the original issuance. In addition, premature redemption will also disqualify the investor from claiming the exemption.

Interest Income Remains Taxable

It is important to note that the 2.5% annual interest offered on Sovereign Gold Bonds continues to remain taxable as per the investor’s applicable income tax slab. This aspect of SGB taxation remains unchanged.

Revised Tax Treatment Explained

The taxability of capital gains on Sovereign Gold Bonds under the proposed framework can be summarised as follows:

• Purchased at original issue and held till maturity: Capital gains exempt
• Not purchased at original issue but held till maturity: Capital gains taxable
• Purchased at original issue but redeemed before maturity: Capital gains taxable
• Purchased from secondary market and not held till maturity: Capital gains taxable

Uniform Application Across All SGB Issuances

The Budget 2026 proposal also states that this exemption rule will apply uniformly to all Sovereign Gold Bond issuances by the Reserve Bank of India. This ensures a consistent tax framework and eliminates differing interpretations for different bond series.

What Investors Should Keep in Mind

For long-term investors considering SGBs primarily for tax efficiency, subscribing during the original issue and holding till maturity is now crucial. Secondary market purchases may still offer price opportunities, but they will not provide the same tax advantage on capital appreciation.

Investors should carefully reassess their gold investment strategy in light of these changes and factor in the potential tax outgo before making decisions.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India Budget FY27: Government to Borrow Record ₹17.2 Trillion, Bond Yields Under Pressure

India Budget FY27: Government to Borrow Record ₹17.2 Trillion, Bond Yields in Focus

India’s central government has announced a record gross borrowing of ₹17.2 trillion for the fiscal year 2026–27, marking a significant jump from the current year and exceeding most market expectations. The borrowing plan, revealed as part of the Union Budget, reflects the government’s intent to support economic growth while managing fiscal consolidation in a challenging global environment.

Borrowing Plan Exceeds Market Estimates

The planned gross borrowing of ₹17.2 trillion represents a 17% increase over the current fiscal year’s borrowing of ₹14.61 trillion. In comparison, market participants had largely anticipated gross borrowings in the range of ₹16 trillion to ₹17.5 trillion, with consensus estimates clustering around ₹16.3 trillion.

On a net basis, government borrowing is set to rise to ₹11.73 trillion in FY27, compared with ₹11.33 trillion in the ongoing fiscal year. India’s fiscal year runs from April to March, and these borrowing numbers play a crucial role in shaping liquidity conditions in the domestic bond market.

Impact on Bond Markets and Yields

Government bond yields have already moved higher in recent months, largely due to the sheer scale of borrowing by both the central and state governments. The fresh announcement of elevated bond supply is expected to keep yields under upward pressure in the near term.

Market participants remain cautious, noting that demand for government securities has struggled to keep pace with issuance. The benchmark 10-year government bond yield may see further upward movement once markets resume trading, as investors digest the larger-than-expected borrowing programme.

Dependence on Central Bank Support

Despite substantial liquidity support measures, including large bond purchases and foreign exchange operations, concerns persist that supply-side pressures could dominate. Analysts believe that bond yields may continue to depend heavily on open market operations by the central bank to remain anchored.

• High gross borrowing increases bond supply.
• Limited incremental demand could keep yields elevated.
• Central bank interventions remain critical for market stability.

Fiscal Deficit and Debt Targets

Alongside the borrowing plan, the government reaffirmed its commitment to fiscal discipline. For FY27, it aims to reduce the fiscal deficit to 4.3% of GDP, aligning with its medium-term consolidation roadmap.

India has also transitioned toward targeting a debt-to-GDP ratio as a key fiscal anchor. For the upcoming fiscal year, the government projects this ratio at 55.6%, signaling gradual progress toward long-term sustainability.

The fiscal deficit, which represents the gap between government spending and revenue, is closely monitored by investors for its implications on borrowing needs, interest rates, and overall market confidence.

Growth Focus Amid Global Uncertainty

The latest budget underscores a renewed emphasis on strengthening domestic manufacturing and supporting economic expansion. With global growth facing uncertainty and financial markets remaining volatile, policymakers appear focused on balancing growth support with prudent fiscal management.

For investors, the record borrowing plan is a double-edged sword. While it reflects confidence in sustaining economic momentum, it also raises concerns about persistent pressure on bond yields and funding costs across the economy.

What Investors Should Watch

In the coming months, bond market movements will likely hinge on several factors:

• The pace and scale of government bond issuance.
• Demand from banks, insurance companies, and foreign investors.
• Liquidity measures and bond purchases by the central bank.

As FY27 approaches, the interaction between fiscal policy and monetary support will remain central to market sentiment, particularly for fixed-income investors tracking yield trends.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Precious Metals Slide as Strong Dollar Triggers Gold and Silver Sell-Off

Precious Metals Slide as Strong Dollar Triggers Profit Booking

Gold and Silver Face Sharp Correction

Precious metals witnessed a sharp sell-off on Friday, with gold and silver prices tumbling from their recent highs. The decline was largely driven by a strengthening US dollar and the unwinding of yen carry trades, which together dampened investor appetite for safe-haven assets. The correction came after a strong rally in January, prompting many investors to lock in profits.

In the domestic spot market, gold prices fell 5.4% to around ₹1.66 lakh per 10 grams, marking a steep decline of nearly ₹9,545 in a single session. Silver saw an even sharper fall, plunging 10.7% to about ₹3.39 lakh per kilogram. The speed and magnitude of the fall reflected heightened volatility across global commodity markets.

ETFs See Deeper Cuts Than Spot Prices

The correction in spot prices quickly spilled over into exchange-traded funds (ETFs) linked to precious metals. Notably, ETFs declined more sharply than the underlying metals, suggesting an exit of speculative and short-term positions.

• Silver ETFs dropped between 18% and 24%
• Gold ETFs corrected by 8% to 12%

This divergence highlights how leveraged and speculative investments tend to react more aggressively during periods of market stress. Silver ETFs, which had seen strong inflows over the past few months, were particularly vulnerable during the sell-off.

Global Cues Add to Market Pressure

Market participants pointed to multiple global factors behind the sharp fall. Expectations of a more aggressive interest-rate outlook in the United States weighed heavily on precious metals, which typically struggle in a rising rate environment. Additionally, the unwinding of yen carry trades removed a key source of liquidity that had previously supported commodity prices.

The policy stance of major central banks also played a role. Japan’s central bank had earlier raised interest rates to multi-decade highs and maintained a steady stance in its recent meeting, prompting investors to reassess risk positions globally. Speculation around a potentially more hawkish US monetary leadership further added to the pressure on gold and silver prices.

Selective Buying Emerges at Lower Levels

Despite the sharp correction, the dip attracted some bargain hunting. Market participants noted that long-term investors and jewellers stepped in to buy at lower price levels, viewing the decline as a temporary pause rather than the end of the bullish trend.

Jewellery manufacturers used the opportunity to replenish inventories, although retail demand from end consumers remained muted. Many investors continue to believe that the broader outlook for gold remains constructive, supported by global uncertainty and long-term inflation concerns.

Outlook: Volatility Likely to Persist

Experts caution that precious metals may remain volatile in the near term as currency movements, global interest-rate expectations, and speculative positioning continue to influence prices. While the recent fall was driven largely by profit booking rather than a shift in fundamentals, investors are advised to remain cautious and factor in short-term fluctuations.

For long-term investors, gold and silver continue to play a role as portfolio diversifiers. However, the recent episode underscores the importance of disciplined investing and awareness of global macroeconomic triggers.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India Cuts Food Weight in CPI to 36.75% Under New Inflation Series

India to Revamp CPI Basket: Food Weight Reduced to 36.75% in New Inflation Series

India is set to introduce a revamped Consumer Price Index (CPI) series that significantly reduces the weight of food items, a move expected to make headline inflation readings more stable and reflective of current consumption trends. Under the new framework, the share of food in the CPI basket will be cut to 36.75% from the existing 45.86%.

This structural change could help smooth inflation volatility and provide clearer signals for monetary policy, as food prices are often influenced by seasonal factors such as weather conditions and supply disruptions.

Why the CPI Basket Is Being Updated

The current CPI series is based on consumer spending patterns from 2011–12, which economists believe no longer accurately represent how Indian households spend today. Over the past decade, rising incomes, urbanisation, and greater spending on services have altered consumption behaviour.

To address this gap, the government will adopt 2024 as the new base year for CPI calculations. The year 2025 will serve as an overlap period, allowing historical inflation data to be statistically converted to the new base for continuity and comparison.

More Spending Categories for Better Price Tracking

One of the key changes in the new inflation series is the expansion of major CPI groups. The number of headline categories will increase to 12 from the current six, bringing India’s inflation measurement framework closer to global best practices.

This broader classification is expected to improve price tracking across sectors and provide policymakers with deeper insights into inflation drivers.

Food’s Shrinking Share in Household Budgets

Recent household expenditure surveys indicate that food now accounts for a smaller share of total spending compared to a decade ago:

• Urban households: Food share has declined to 39.7% from about 43% in 2011–12.
• Rural households: Food spending stands at around 47%, down from nearly 53% earlier.

The revised CPI weights aim to better capture these shifts, ensuring inflation data mirrors present-day realities.

Housing and Utilities Remain Key Inflation Drivers

The combined weight of housing, water, electricity, gas, and other fuels will be fixed at 17.66%, making it the second-largest contributor to inflation after food.

Notably, rural house rent has been included in CPI for the first time, and the sample size for tracking house rents has been expanded in both rural and urban areas. This change is expected to improve the accuracy of shelter-related inflation measurements.

Transport, Health, and Services Gain Importance

Other major components in the revised CPI basket include:

• Transport: 8.8%
• Health: 6.10%
• Clothing and footwear: 6.38%

Service-oriented categories such as restaurants and accommodation, education, and information and communication will each carry weights of around 3.5%, highlighting the economy’s gradual shift toward services.

E-commerce Prices to Be Tracked for the First Time

In a significant modernization step, the CPI will now incorporate prices from e-commerce platforms. Items such as airfares, OTT subscriptions, telecom plans, and selected online services will be monitored, reflecting the growing role of digital consumption in household spending.

Recent Inflation Trends

India’s headline inflation rose in December to 1.33% year-on-year, marking its fastest pace in three months, as the decline in food prices moderated. In November, inflation had stood at 0.71%.

The updated CPI structure is expected to offer a clearer and more balanced view of inflation trends going forward, aiding both investors and policymakers.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Rupee Hits Record Low Beyond 92 vs Dollar Amid FII Outflows and Importer Demand

Rupee Slips Past 92 per Dollar to Record Low Amid Capital Outflows and Importer Worries

The Indian rupee weakened sharply on Thursday, sliding past the critical 92-per-dollar mark for the first time and touching a fresh all-time low of 91.99. The fall reflects sustained pressure from weak foreign capital inflows, heightened corporate hedging activity, and persistent demand for dollars from importers.

This latest move underscores the growing strain on the domestic currency despite relatively strong macroeconomic fundamentals. Market participants noted that anxiety over further depreciation has intensified, prompting companies to protect themselves against currency risks.

Sharp Decline in a Short Span

The rupee’s breach of the 92 level came just days after it crossed 91 for the first time, highlighting the speed of the recent depreciation. So far in the current calendar year, the currency has weakened by around 2%. Since the imposition of higher U.S. tariffs on Indian merchandise exports, the cumulative decline has been close to 5%.

This weakness has persisted even as India continues to post strong growth numbers. Official data shows that the economy expanded by 8.2% in the quarter ended September 30, reinforcing the contrast between domestic growth momentum and external sector pressures.

Central Bank Seen Stepping In

Traders indicated that the central bank likely intervened in the currency market ahead of the local session to curb excessive volatility as the rupee neared the psychologically important 92 mark. Such moves are generally aimed at smoothing sharp fluctuations rather than defending a specific level.

Policymakers have consistently maintained that they do not target a fixed exchange rate or band. Instead, interventions are used selectively to prevent disorderly market movements and maintain overall financial stability.

External Pressures Continue to Weigh

Several external factors have combined to keep the rupee under pressure. These include:

• Steep U.S. tariffs on Indian exports, which have strained trade flows
• Large foreign portfolio outflows, reducing dollar supply in domestic markets
• Rising bullion imports, increasing demand for foreign currency
• Corporate risk aversion, with firms actively hedging against further depreciation

Since the tariff measures took effect, the rupee has also weakened by around 7.5% against both the euro and the Chinese yuan. On a trade-weighted basis, the real effective exchange rate stood at 95.3 in December, marking its lowest level in nearly a decade.

Hedging Activity Adds to Pressure

A notable shift in market behavior has further exacerbated the rupee’s decline. Importers and corporate entities have increased hedging in the forward market to guard against a weaker currency. At the same time, exporters have slowed their dollar sales, reducing supply and amplifying downward pressure on the rupee.

Analysts believe this imbalance between dollar demand and supply has played a significant role in the recent sharp moves, especially during periods of thin liquidity.

Outlook Remains Cautious

Market experts expect volatility to remain elevated in the near term. While there is optimism that current tariff-related pressures may ease over time, delays in policy relief could continue to weigh on India’s external balances.

Some forecasts suggest that the rupee could weaken further over the next year, though periodic central bank intervention and rebuilding of foreign exchange reserves on favorable moves may help limit excessive swings.

For investors and businesses, the recent currency movement highlights the importance of monitoring global trade developments, capital flows, and risk management strategies in an increasingly uncertain external environment.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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TVS Motor Q3 FY26 Results: Net Profit Rises 49%, Revenue and Sales at Record High

TVS Motor Q3 FY26 Results: Net Profit Jumps 49%, Revenue and Sales Hit Record High

TVS Motor Company delivered a robust financial performance in the third quarter of FY26, reporting its highest-ever quarterly sales, revenue, and profits. Strong demand across motorcycles, scooters, electric vehicles, and three-wheelers, along with margin expansion, supported the company’s impressive growth during the quarter ended December 31, 2025.

Strong Growth in Profit and Revenue

The company’s consolidated net profit surged 49% year-on-year (YoY) to ₹841 crore in Q3 FY26, compared with ₹566 crore in the same quarter last year. Revenue from operations rose sharply by 34% YoY to ₹14,756 crore, up from ₹11,035 crore in Q3 FY25, reflecting healthy volume growth and improved product mix.

Operating performance also remained strong. EBITDA climbed 37.2% to ₹2,271 crore from ₹1,654 crore a year ago. The EBITDA margin improved to 15.3% in the reporting quarter, compared with 14.9% in Q3 FY25, indicating better cost efficiencies and operating leverage.

Record Performance Over Nine Months

For the nine months ended December 2025, TVS Motor posted solid cumulative growth. Operating revenue increased by 29% to ₹34,463 crore, compared with ₹26,701 crore in the corresponding period last year.

During the same period, operating EBITDA rose 41% to ₹4,406 crore. Profit after tax (PAT) for the nine-month period stood at a strong ₹2,625 crore, underlining sustained profitability across business segments.

Vehicle Sales Touch All-Time High

TVS Motor achieved its highest-ever quarterly vehicle sales in Q3 FY26. Total two-wheeler and three-wheeler sales, including international operations, grew 27% YoY to 15.44 lakh units, compared with 12.12 lakh units in the same quarter last year.

Key Segment-Wise Sales Highlights

• Motorcycles: Sales rose 31% to 7.26 lakh units, up from 5.56 lakh units in Q3 FY25.
• Scooters: Sales increased 25% to 6.14 lakh units, compared with 4.93 lakh units a year ago.
• International two-wheeler business: Volumes grew 35% YoY to 3.66 lakh units.
• Three-wheelers: Sales more than doubled, rising 106% to 0.60 lakh units, from 0.29 lakh units in the year-ago quarter.

Electric Vehicle Sales Gain Momentum

The company’s electric vehicle (EV) segment continued its strong growth trajectory. EV sales jumped 40% YoY, reaching a record 1.06 lakh units in Q3 FY26, compared with 0.76 lakh units in the same quarter last year. This growth highlights rising consumer adoption of electric mobility and TVS Motor’s expanding EV portfolio.

Outlook

With record sales volumes, improving margins, and strong demand across domestic and international markets, TVS Motor has entered the second half of FY26 on a solid footing. Continued focus on electric vehicles, exports, and premium offerings could support sustainable growth going forward.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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