Bullish News
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NSE Seeks Bank Mandates for Proposed $2.5 Billion IPO
The National Stock Exchange of India (NSE) has intensified its march toward a public listing, inviting major investment banks to pitch for key roles. Under the guidance of Rothschild & Co., the exchange is reviving its long-awaited IPO following a significant regulatory breakthrough in early 2026. Market analysts estimate the potential IPO size at approximately 21,000 to 24,500 crore INR. This valuation is based on a projected 5% dilution of existing shares. The issue is expected to be a pure Offer for Sale (OFS), meaning current shareholders will liquidate parts of their holdings without new capital being raised for the exchange itself. Recent secondary market data indicates robust investor interest. Unlisted shares of the NSE are currently trading in the range of 1,950 to 2,050 INR per share. This translates to an implied market capitalization of nearly 4.95 lakh crore INR, reflecting a valuation multiple of roughly 55 times price-to-earnings. The timing of this revival coincides with a period of high activity in the Indian equity markets. As of late February 2026, the Nifty 50 remains resilient near the 25,500 level, while the BSE Sensex trades around 82,400. Total market capitalization of all companies listed on the NSE recently surpassed 460 lakh crore INR, reinforcing the exchange's dominant position. The shareholder base of the NSE is the largest for any unlisted entity in India, with nearly 1.9 lakh investors. Institutional giants such as LIC (10.7%), Temasek (4.5%), and SBI (3.2%) hold significant stakes. The exchange continues to dominate the derivatives segment, which serves as its primary revenue engine. Despite past governance hurdles and regulatory probes, the report of a key clearance from the market regulator in January 2026 has shifted the narrative. Management now targets a formal listing by the end of 2026, subject to final approvals. Investors are closely monitoring the impact of increased Securities Transaction Tax (STT) on derivatives volumes. However, the resilient pricing in the unlisted market suggests that the structural dominance of the NSE remains the primary driver for its upcoming public debut.
Waaree and Premier Energies Shares Gain 2% Amid Analyst Outlook on US CVD Impact
Indian solar energy stocks demonstrated resilience on Thursday, February 26, 2026, recovering from a sharp sell-off triggered by trade tensions with the United States. Shares of major players like Waaree Energies and Premier Energies traded in positive territory, marking a pivot in investor sentiment. The sector faced intense pressure earlier in the week after the U.S. Department of Commerce announced a preliminary countervailing duty of 125.87% on crystalline silicon photovoltaic cells and modules from India. This duty is part of a broader investigation that also affects imports from Indonesia and Laos, aiming to counter alleged government subsidies. Market reaction was initially severe, with Waaree Energies sliding 10.5% and Premier Energies dropping 6% on Wednesday. However, by Thursday morning, Waaree Energies climbed over 1% to approximately ₹2,737.80 on the NSE. Premier Energies and other industry peers also stabilized as brokerage firms issued reassuring outlooks. Analysts emphasize that the long-term impact on leading Indian firms may be minimal. Premier Energies has already reduced its U.S. exports to negligible levels, focusing instead on a booming domestic market. Similarly, Waaree Energies is mitigating risks by expanding its localized manufacturing presence within the United States and diversifying its global supply chain. The domestic landscape remains a primary growth engine. India's installed solar capacity crossed the 140 GW mark in early 2026, supported by robust government initiatives like the PM Surya Ghar Rooftop Solar scheme. The Union Budget 2025-26 further bolstered the sector by increasing allocations for rooftop solar to ₹22,000 crore and removing basic customs duties on critical manufacturing components like sodium antimonate. Despite the U.S. trade hurdles, India's solar manufacturing capacity continues to expand rapidly. The country is currently adding roughly 17 GW to 20 GW of utility-scale solar annually. With a national target of 500 GW of non-fossil power capacity by 2030, the shift toward domestic self-reliance is expected to offset potential export losses. Investor confidence is currently supported by strong corporate earnings. For the quarter ending December 2025, Waaree Energies reported a significant revenue surge of 119% year-over-year, with net profits rising to ₹1,107 crore. These fundamentals suggest that while trade volatility persists, the structural demand for green energy remains a dominant force.
Tejas Networks Shares Rise 10% Following Four-Day Decline
Tejas Networks shares surged today, February 26, 2026, gaining approximately 10% to hit an intraday high of ₹349.65. This rally effectively snapped a four-day losing streak and was triggered by the announcement of a strategic agreement with NEC Corporation. Under this pact, Tejas will manufacture and supply 5G massive MIMO radios, a move designed to diversify the global telecom supply chain. Massive MIMO technology is a critical component of 5G infrastructure. By using dozens of antennas to create precise data beams, it significantly increases network capacity and signal reliability. Tejas will provide high-capacity 32TR and 64TR radios that comply with global O-RAN standards, positioning the company as a key player in the transition to 5G-Advanced solutions. The market reaction has been swift, with nearly 1.6 million shares changing hands on the BSE alone. The stock’s performance today outpaced the broader Sensex, which saw a modest gain of 0.27%. While the company has faced a challenging year with a 52-week high of ₹914.50 and a low of ₹294.10, today’s 8% to 10% jump reflects renewed investor confidence in its international expansion strategy. Financial data for the third quarter of fiscal year 2026 shows a revenue increase of 17% to ₹307 crore. Despite this growth, the company reported a net loss of ₹197 crore for the quarter, largely due to high inventory levels and operational costs associated with large-scale projects. However, the order book remains healthy at ₹1,329 crore, with a significant 92% of orders currently coming from the Indian market. The collaboration with NEC is expected to shift this balance by scaling the company’s wireless business across Europe, Latin America, and Africa. This partnership follows a previous memorandum of understanding valued at $500 million aimed at co-developing 6G technologies and promoting Indian exports. India is currently the second-largest 5G market globally, with over 400 million subscribers. Local infrastructure deployment has reached 99.6% of districts, supported by nearly 4.69 lakh base stations. The Indian 5G market is projected to grow to over $178 billion by 2031, providing a massive domestic runway for Tejas as it integrates into the global ecosystem through the Tata Group's backing. Current market data shows Tejas Networks trading above its 5-day and 20-day moving averages, indicating a strong short-term rebound. The company continues to invest heavily in innovation, filing 26 new patents this quarter to reach a global total of 613. These advancements in indigenous 4G and 5G stacks are central to the company's goal of achieving long-term technical self-reliance and international competitiveness.
Indian Rupee Tracks Sideways as Peer Emerging Market Gains Driven by Tech and Commodities Diverge
The Indian rupee remains in a tight range as of late February 2026, currently trading near **90.94** against the U.S. dollar. While a slight softening of the dollar index to **97.12** has provided brief breathing room, the currency continues to punch below its weight. It has faced a year-to-date decline of approximately **2.0%**, significantly lagging behind its emerging market peers. Central bank activity is the primary anchor for the currency at these levels. The Reserve Bank of India recently intervened to defend the psychologically critical **91.00** mark. Market dealers report that the central bank is actively selling dollars to curb excessive volatility, even as importers capitalize on any minor rupee gains to fulfill their dollar requirements. The equity market is currently navigating a period of sharp sectoral divergence. The **BSE Sensex** and **Nifty 50** have seen notable pressure, with the Sensex recently dropping over **1,060 points** in a single session. This volatility is largely driven by a massive sell-off in the technology sector. The **Nifty IT** index plummeted nearly **5.0%** recently, as investors weigh the disruptive impact of artificial intelligence on traditional service models. Global investors are shifting their focus toward markets with heavy exposure to commodities and high-growth tech hardware. In India, this has led to a rotation out of IT and into defensive and cyclical pockets. Sectors such as **Energy**, **Metals**, and **FMCG** have shown relative resilience. Specifically, the **Nifty Bank** index has risen by **1.64%** recently, supported by strong performance in public sector banks. Capital flows reflect a "debt-led" recovery in investor sentiment. While secondary market equities saw a net outflow of **4.55 billion INR** in mid-February, the debt market attracted over **51 billion INR** in a single week. This suggests that while stock valuations and tech disruption cause caution, India’s fixed-income opportunities remain a significant draw for foreign portfolio investors. The near-term outlook remains cautious. Analysts expect the rupee to fluctuate between **90.50 and 92.00** as the market balances strong domestic GDP growth, projected at **7.4%**, against a widening merchandise trade deficit that reached **34.68 billion USD** in January. Equity performance is expected to remain volatile until there is greater clarity on global trade policies and the long-term margins of the technology sector.
Nykaa Leads Internet Stocks with 64% Rally Amid Valuation and Risk-Reward Evaluation
FSN E-Commerce Ventures, the parent entity of Nykaa, has emerged as a top performer in the consumer internet sector, with its stock price surging 64% over the past year. As of late February 2026, the shares are trading near **₹268**, maintaining momentum after hitting a 52-week high of **₹285.60**. This rally is anchored by a significant shift in the company’s financial health. In the third quarter of fiscal year 2026, Nykaa reported a consolidated net profit of **₹63.31 crore**, representing a 143% jump compared to the same period last year. Revenue from operations also saw a robust climb of 27%, reaching **₹2,873 crore**. The Beauty and Personal Care (BPC) segment remains the primary engine of growth, contributing over 90% of total revenue. Strategic focus on premiumization and a high-frequency customer base has driven this vertical to scale, with premium users reportedly spending nearly nine times more than the average shopper. Operational efficiency has seen marked improvement, with EBITDA margins expanding to 8% from 6.2% a year prior. This gains stem from better cost management and the rising contribution of "House of Nykaa" owned brands, which offer higher margins than third-party labels. The Fashion vertical, while still smaller, is showing signs of stabilization. Management has targeted a breakeven for this segment by the end of fiscal 2026. Gross Merchandise Value (GMV) across all platforms grew 28% year-on-year to **₹5,795 crore**, supported by an expanding offline footprint of over 270 stores. Market analysts remain divided on the stock’s immediate future. While some see the recent rally as a long-overdue re-rating driven by structural profitability, others point to a high price-to-earnings (P/E) ratio as a sign of expensive valuation. Consensus price targets hover around **₹289**, suggesting a potential 10% upside from current levels. Traders have noted a sharp increase in open interest in the derivatives segment, indicating high market activity and shifting directional bets. Short-term technical indicators show minor weakness as the stock trades below its 5-day moving average, though it remains firmly above its 200-day long-term trend line. The company is also pivoting toward speed to stay competitive. The "Nykaa Now" rapid-delivery service is active in major cities, fulfilling some orders in under 10 minutes. This move aims to capture impulse-led purchases and increase order frequency among its 52 million active customers.
Angel One Share Price Adjusts Following Stock Split and Bonus Issue
Angel One shares experienced a perceived price collapse on February 26, 2026, as the stock adjusted for its first-ever 1:10 stock split. The shares opened at 251.00 INR, contrasting sharply with the previous day's closing price of 2,489.90 INR. This 90% price reduction is a technical adjustment rather than a loss of value. Under the 1:10 ratio, every equity share with a face value of 10 INR has been subdivided into 10 shares with a face value of 1 INR each. The corporate action aims to enhance liquidity and make the stock more accessible to retail investors. While the number of outstanding shares has increased tenfold to approximately 90.85 crore, the company’s total market capitalization remains stable at approximately 22,600 crore INR. Operational momentum for the brokerage remains strong despite the price adjustment. Angel One reported a 20.8% year-on-year growth in its client base, reaching 36.39 million as of January 2026. Monthly client additions rose 1.9% from December, reflecting sustained retail interest. Average daily turnover (ADTO) surged by 107.8% year-on-year to 64.07 lakh crore INR in January 2026. The F&O segment continues to drive the bulk of this activity, contributing 62.45 lakh crore INR to the total turnover. Financially, the company remains profitable with a reported consolidated net profit of 269 crore INR for the quarter ending December 2025. Although this was a minor 4.5% dip year-on-year, it represented a 26.9% sequential growth, supported by a revenue climb to 1,335 crore INR. The board recently rewarded shareholders with an interim dividend of 23 INR per share on the pre-split face value. Strategic focus has also shifted, with the company withdrawing a previous proposal to transfer its core broking business to a subsidiary to maintain its current operational framework. Market analysts maintain a generally positive outlook on the stock's long-term trajectory. Current price targets from major brokerages range between 3,000 INR and 3,860 INR on a pre-split basis, which equates to roughly 300 INR to 386 INR in the new post-split environment. The brokerage industry in 2026 continues to benefit from a "capex super cycle" and a digital economy ecosystem. With demat accounts in India surpassing the 18-crore mark, Angel One's move to lower the entry price for its shares aligns with the broader trend of rising retail participation in equity markets. [Angel One 1:10 Stock Split Update](https://www.youtube.com/watch?v=KMuRXe3bkHA) This video provides a broader perspective on the financial sector trends and top brokerage recommendations for 2026, helping investors understand the environment in which Angel One is operating. http://googleusercontent.com/youtube_content/0
Dipan Mehta Bullish on NBFC Sector Citing Improved Balance Sheets
Market activity on **February 26, 2026**, reflects a landscape of cautious optimism and sharp sectoral rotation. The Nifty 50 is holding steady above the **25,500** mark, while the Sensex remains flat near **82,400**. This stability follows a period of heightened volatility, with the India VIX cooling to **13.49**, down from recent highs of **14.36**. Financials and Pharma Strength Diversified Non-Banking Financial Companies (NBFCs) are emerging as a preferred segment as balance sheets show significant improvement. A widespread cleanup of microfinance and MSME unsecured portfolios has strengthened the sector’s foundation. Preferred focus remains on multi-product lenders over niche players, with industry leaders like Bajaj Finance and L&T Finance maintaining high visibility. The pharmaceutical sector continues to attract defensive interest, with expectations of **7–9%** revenue growth for the fiscal year **2026**. Domestic market demand remains the primary driver, projected to expand by **8–10%**, while exports to Europe are forecasted to grow by **10–12%**. Investors are increasingly overweight on the sector, particularly monitoring the growing GLP-1 opportunity and a potential turnaround in CDMO players. Real Estate and Solar Evolution Caution is advised in the real estate space, where high supply and ongoing valuation adjustments are prompting a more selective approach. Large developers with strong annuity assets and recurring rental income are favored, with companies like DLF and Prestige positioned as key benchmarks. The solar industry is navigating short-term challenges following a preliminary **126%** duty on Indian solar imports to the US. Despite this, the long-term outlook remains positive, with the domestic market valued at **$14.89 billion** in **2026**. Industry sentiment suggests that these tariffs will not significantly derail the broader manufacturing push, which is targeting a compound annual growth rate (CAGR) of **19.05%** through **2031**. Structural Shifts in Metals and Tobacco The metal sector, having recently served as a major market outperformer, is entering a cyclical slowdown. Fresh entries are being approached with caution, as current price levels may not sustain historical outperformance. Tobacco stocks, notably ITC, are facing a structural shock following the implementation of the **Central Excise Amendment Bill 2025**. Effective **February 1, 2026**, sharp excise duty hikes of **₹2,050 to ₹8,500** per **1,000** sticks have been levied on top of the existing **40%** GST. This regulatory shift has pushed ITC toward a **52-week low** near **₹302**, as analysts predict a necessary **33%** price hike to offset the tax impact. Growth projections for the segment remain subdued, with a focus on potential volume protection over immediate profitability.
Sanofi Consumer Healthcare Shares Rise 14% on Q4 Profit Growth and Dividend Declaration
Sanofi Consumer Healthcare India (SCHIL) shares experienced a powerful rally today, surging over 14% to reach an intraday high of ₹4,586 on the BSE. This bullish momentum follows the release of exceptional financial results for the fourth quarter and full year ending December 31, 2025. The company reported a 50% year-on-year increase in net profit for the December quarter, reaching ₹66.5 crore. Revenue for the same period saw a dramatic 47% jump to ₹251 crore. These figures mark a significant turnaround for the entity, which only recently emerged as a standalone listed company following its demerger from Sanofi India. A key driver of this growth was the successful relaunch of products that had previously faced voluntary recalls in the domestic market. Domestic sales grew by a healthy 23% in the final quarter, while export revenue surged more than 9 times over a low base from the previous year. For the full financial year 2025, the company’s performance was equally robust: - Total revenue rose 21% to ₹878.4 crore. - Net profit increased by 33% to ₹240 crore. - Basic Earnings Per Share (EPS) climbed to ₹104.27, up from ₹78.59. In a move to reward shareholders, the board has recommended a final dividend of ₹75 per equity share. When combined with previous interim payouts, the total dividend for the 2025 fiscal year reached ₹123 per share, highlighting the company’s strong cash position and commitment to investor returns. Management attributed the results to disciplined cost management, a better product mix, and sustained investment in core brands like Allegra, Avil, and Combiflam. The company also maintained an almost debt-free balance sheet and improved its operational efficiency, reducing its working capital cycle significantly. While the consumer healthcare arm soared, its former parent entity, Sanofi India, faced a different trajectory, with its share price slipping roughly 4.5% following a 32% decline in its own quarterly net profit. Market observers are now monitoring the impact of new Indian labor codes and changes in the global parent structure. Sanofi recently completed a 50% stake sale of its global consumer health business, Opella, to private equity firm CD&R, a move that may influence the strategic direction of the Indian subsidiary in the coming years.
BOJ Official Takata Flags Potential Inflation Overshoot Risk
The Bank of Japan is currently navigating a pivotal transition as board member Hajime Takata intensifies calls for a shift in monetary strategy. Speaking in Kyoto on February 26, 2026, Takata emphasized that the era of fighting deflation has ended. He is now urging the central bank to prioritize preventing an inflation overshoot, advocating for a steady and gradual increase in interest rates. Takata maintains that Japan has successfully met its 2.0% inflation target. He noted that the economy has fully emerged from a decades-long period of stagnation. Despite these hawkish leanings, the broader board remains divided. In January 2026, the BOJ held its short-term policy rate steady at 0.75%, rejecting Takata’s proposal to hike the rate to 1.0%. Current economic data reflects a cooling trend in consumer prices. Japan's annual inflation rate eased to 1.5% in January 2026, down from 2.1% in December. This represents the lowest level since early 2022. Similarly, core inflation—which excludes fresh food—slipped to 2.0%, aligning exactly with the central bank’s long-term target. While inflation is moderating, the "virtuous cycle" of wages and prices is gaining momentum. Major labor unions are pursuing wage increases exceeding 5.0% for the third consecutive year. This persistent upward pressure on personnel expenses is expected to make underlying inflation more "sticky," potentially keeping core CPI near the 2.0% mark throughout 2026. Global factors are also playing a significant role in the BOJ’s internal debate. Takata highlighted that massive global fiscal stimulus and the ongoing boom in artificial intelligence could push up international growth, further pressuring Japanese domestic prices. However, the political landscape introduces new variables. Prime Minister Sanae Takaichi recently nominated two reflation-leaning academics to the BOJ board, signaling a preference for more cautious policy tightening. Financial markets have reacted sharply to these conflicting signals. The Nikkei 225 Index hit a fresh record high, surging above 59,000 on February 26, 2026. This rally was fueled by fading expectations of an immediate rate hike following the government's dovish board nominations. In the currency markets, the Yen has faced renewed downward pressure. The USD/JPY pair recently tested resistance near 156.25 as traders pushed back the timing for the next rate increase. While a hike in March is now seen as unlikely, with probabilities dropping below 10%, many analysts still expect the BOJ to adjust rates toward 1.2% or higher by the end of the year if the wage-price spiral remains intact. The central bank now faces a delicate balancing act. It must weigh the hawkish warnings of an inflation overshoot against a government that favors looser policy to support moderate GDP growth, which is projected at roughly 0.9% for fiscal 2026. This recalibration is expected to have lasting effects on global liquidity and the carry trade as Japan moves toward a more normalized interest rate environment.
Rupee gains 6 paise to 90.85 against US dollar in early trade
Market Brief: Rupee & Equity Update **February 26, 2026** The Indian Rupee showed resilience in Thursday's early session, strengthening by **10 paise** to reach **90.81** against the US Dollar. This movement follows a period of consolidation and reflects a cautious yet positive shift in local currency sentiment. A primary driver for the Rupee's gain is the cooling of the US Dollar index. Recent data, including stronger-than-expected corporate earnings in the US, has buoyed global risk appetite, leading to a marginal softening of the greenback across Asian markets. Capital Flows and Institutional Activity Foreign Institutional Investors (FIIs) have maintained a steady presence, providing essential support to the local unit. On February 25, FIIs were net buyers in the cash segment with an inflow of **₹2,991.64 crore**. Domestic Institutional Investors (DIIs) further bolstered this trend, recording a significant net purchase of **₹5,118.57 crore**. This synchronized buying activity highlights robust internal confidence in the Indian economy's trajectory for the 2026 fiscal year. Domestic Equity Performance The domestic equity markets opened on a firm note, with benchmark indices trading in green. The **NSE Nifty 50** surpassed the **25,500** mark, gaining approximately **0.29%** in early trades. The **BSE Sensex** rose by over **140 points**, trading near the **82,418** level. Market leadership is currently driven by the IT and Banking sectors. Specifically, the Nifty IT index outperformed with a nearly **1%** jump, ending a five-day losing streak. External Pressures and Commodity Trends Despite the local gains, global variables continue to act as a ceiling for the Rupee. Brent crude oil prices have edged up to approximately **$71.04** per barrel. Investors are closely monitoring the upcoming nuclear talks in Geneva. Geopolitical uncertainties and the potential for supply disruptions in the Middle East maintain a "risk premium" on energy prices, which typically puts pressure on the Indian trade deficit. Economic Outlook The broader economic backdrop remains supportive. India's GDP growth for FY26 is projected at **7.4%**, backed by a historic low inflation average of **1.7%** in the previous quarters. With foreign exchange reserves standing robust at over **$701 billion**, the Reserve Bank of India possesses significant buffers to manage currency volatility. While the immediate outlook for the Rupee is positive, it remains sensitive to fluctuations in global energy markets and US interest rate signals.
Asit Bhandarkar Maintains Underweight Stance on IT and Increases Exposure to Small-Cap Equities
Market Brief: Strategic Rebalancing in Indian Equities The Indian equity market is currently navigating a period of disciplined recalibration. As of February 2026, the **Nifty 50** is trading near **22.6 times** trailing earnings, while market targets for the index sit at approximately **29,000** for the year-end. This represents a projected upside of roughly **11%**, driven primarily by corporate earnings growth rather than valuation expansion. IT Sector: Disciplined Underweight The Information Technology sector remains under pressure due to global revenue deflation and shifting tech expenditure. Expert sentiment from JM Financial Mutual Fund suggests a **slight underweight** position rather than a complete exit. Many large-cap IT entities are now trading at discounts to their **5-year and 10-year** historical benchmarks. While macro headwinds persist, the sector’s solid cash flows provide a safety net, making current price levels unattractive for selling. The strategy focuses on patience as management teams restructure to adapt to the 2026 economic environment. Smallcap Momentum and Recovery Smallcap stocks have emerged as the primary growth engine for the current fiscal year. Recent data shows the smallcap segment leading the market with **22% year-on-year** earnings growth in the most recent quarter. This significantly outpaces the **14%** growth seen in large-caps and **15%** in mid-caps. Following a period of correction where the smallcap index declined roughly **8-9%** in early 2026, valuations have reset to more sustainable levels. The **Nifty Smallcap 250** price-to-earnings multiple has moderated to **26.5**, down from previous highs exceeding **32**. This reset, combined with strong bottom-up earnings momentum, presents a compelling entry window for disciplined stock selection. Macro Indicators and Liquidity The broader domestic economy remains resilient with a **7.4% GDP growth** forecast for FY2026. Monetary policy has turned supportive, with the RBI maintaining a neutral stance after reducing the repo rate to **5.25%**. While Foreign Institutional Investors (FIIs) recorded net outflows of **₹3.1 trillion** year-to-date, domestic liquidity remains a pillar of strength. Monthly SIP inflows have remained steady at approximately **₹294 billion**, providing a consistent cushion against global volatility. Investors are encouraged to prioritize companies with clear earnings visibility over speculative sector rotation, particularly within the rebounding smallcap space.
Resilient Indian IT Stocks: Emerging Themes Following the AI Sector Correction
Indian IT stocks have entered a period of intense volatility as the sector faces a structural realignment driven by advancements in Artificial Intelligence. The Nifty IT index witnessed a sharp 21% decline in February 2026, marking its most significant monthly retreat since the 2008 global financial crisis. This downturn, often termed an "Anthropic shock," followed the launch of sophisticated automation tools that threaten traditional software outsourcing models. Major industry leaders saw substantial erosion in market value, with Infosys and Wipro recording losses of 20% and 23.5% respectively. Tata Consultancy Services (TCS) also faced pressure, briefly seeing its market capitalization dip below the ₹10 lakh crore milestone. Despite the broader sell-off, a segment of the market is showing notable resilience. Approximately 25 select stocks have defied the downward trend by pivoting toward AI infrastructure, specialized engineering, and deep-tier integration. These companies are shifting from a labor-intensive "headcount" model to "outcome-based" delivery, which investors are rewarding as a more sustainable strategy. Recent data suggests the "AI scare trade" may be reaching exhaustion. On February 25, the Nifty IT index staged a 3% rebound as reports emerged of potential collaborations between AI startups and established Indian firms. Strategic partnerships are replacing fears of total displacement, with firms like Anthropic exploring service alliances that could utilize India's massive talent pool for AI orchestration. Industry projections remain cautiously optimistic. NASSCOM estimates the sector will reach $315 billion in revenue for fiscal year 2026, reflecting a 6.1% annual growth. AI-specific services are expected to contribute between $10 billion and $12 billion of this total, signaling that the industry is expanding into new domains even as traditional coding tasks are automated. Valuations for the sector have reached levels that some analysts now describe as too attractive to ignore. While the Nifty IT index hit a multi-year low of 30,053 this month, the dip has prompted institutional buying. Investors are increasingly focusing on "AI enablers"—companies with strong platforms in cloud computing, cybersecurity, and data governance—as the primary drivers of the next growth cycle. The current landscape represents a pricing reset rather than a terminal decline. The transition to a hybrid delivery model—where human expertise is layered with AI agents—is expected to dominate the short-term outlook. Market participants are now closely monitoring firms that can successfully compress delivery timelines and capture higher margins through automated efficiency.
US Corporate Bond Market Sees Record Inflow and Issuance Activity
The U.S. primary credit market has entered its most competitive phase on record as of February 2026. A massive surge in investor appetite for new corporate bonds is reshaping how debt is allocated and traded. Recent analysis of over one million investor records shows that competition for high-grade and junk bonds has reached all-time highs. This intensity is driven by a larger pool of funds, increased participation from U.S. life insurers, and a 10% year-over-year growth in holdings by foreign investors. Market performance indicators as of late February 2026: U.S. Corporate Bond Spreads are hovering near historical lows at approximately 0.80%. This compression highlights the extreme demand, as investors accept lower risk premiums to secure holdings. Year-to-date issuance for 2026 has already reached $239.4 billion, marking a 2.5% increase over the previous year. High-yield supply is leading the growth, up 28% compared to the same period in 2025. Secondary market activity is rising sharply. Daily trading volume has averaged $70.3 billion so far this year, a 25% increase from early 2025. The surge in competition has fundamentally changed the landscape for individual and institutional buyers. New bond offerings are "selling out" faster and to a more diverse base, leading to significantly tighter allocations. In the high-grade market, competition has intensified by 15% compared to baseline 2017 levels. The high-yield or "junk" segment has seen an even steeper jump of 30%. The most liquid sectors—including technology, banking, and capital goods—are experiencing the highest competitive pressure, with increases of up to 35%. This primary market squeeze is forcing many participants into the secondary market. Investors who miss out on initial allocations are repositioning quickly. Turnover for bond deals exceeding $1 billion has jumped to 26% within the first 10 days of issuance, nearly double the levels seen a few years ago. Speed of execution has also accelerated. The time required for the first secondary market trade after a bond is issued has dropped to just 20 to 30 minutes, compared to an hour in previous cycles. Looking ahead, experts anticipate record-breaking gross supply for the remainder of 2026. Corporate issuance is expected to be fueled by high refinancing needs, a 20% projected growth in M&A activity, and massive capital expenditures related to artificial intelligence and infrastructure. While the primary market shows signs of temporary slowing in late February, with weekly investment-grade supply dipping to $28 billion, the broader trend remains dominated by heavy demand and tightening spreads. Intermediate-duration bonds, particularly those rated BBB and BB, currently offer the most attractive carry for yield-driven investors in this environment.
Indian Benchmark Indices Rise at Market Open Led by IT Sector
Indian equity benchmarks are sustaining upward momentum for the second consecutive session, bolstered by a strong recovery in global technology shares. The **Nifty 50** is trading at **25,482.50**, gaining **57.85 points** or **0.23%**, while the **Sensex** remains steady near the **82,276** mark. A significant rally on Wall Street, where the **Nasdaq** jumped **1.26%**, has provided a tailwind for domestic IT heavyweights. **Nvidia** reported record quarterly revenue of **$68.1 billion**, up **73%** year-on-year, which has effectively calmed global fears regarding a slowdown in artificial intelligence spending. In the domestic IT space, **HCL Technologies** led the gains with a **2.74%** rise to **1,375.90**. **Tata Consultancy Services (TCS)** advanced **2.15%** to reach **2,629.00**, and **Infosys** climbed **1.14%** to trade at **1,290.10**. This recovery comes after a period of intense volatility where the IT index had corrected nearly **30%** from its previous peaks. Beyond technology, the **Auto** and **Metal** sectors are showing selective strength. **Bajaj Auto** emerged as a top performer, rising **2.74%** to **10,098.50**, while **Tata Steel** gained **2.43%** to reach **214.22**. Market participants are noting a shift toward value buying in these sectors as geopolitical tensions and trade tariff uncertainties stabilize. Despite the positive index movement, heavyweights in the banking and energy sectors are facing pressure. **State Bank of India (SBI)** slipped **1.96%** to **1,199.30**, and **Reliance Industries** dropped **1.96%** to **1,400.80**, limiting the overall upside for the benchmarks. Broad market sentiment remains cautiously optimistic as investors await key domestic macro data. India's **GDP growth** for the current fiscal year is projected at **7.4%**, with industrial activity and digital services driving the momentum. Foreign Portfolio Investors (FPIs) are closely monitoring these indicators following a period of asset reallocation earlier in the month. The **India VIX**, a measure of market volatility, cooled by nearly **5%**, suggesting a temporary stabilization in investor nerves. While the **Nifty** faces immediate resistance near **25,650**, strong support is established at the **25,325** level.
IRFC OFS Opens for Retail Investors: Subscription Outlook and Market Analysis
The Indian Railway Finance Corporation (IRFC) is currently in the spotlight as the government executes a strategic stake sale through an Offer for Sale (OFS). The floor price for the issue was set at **Rs 104**, a level that has acted as a key technical support during recent market volatility. As of late February 2026, the government holds an **86.36%** stake in the company. The current OFS aims to divest a base stake of **2%**, with an additional **2%** greenshoe option. While the first day saw a subscription of approximately **95%** from non-retail investors, the government has reportedly decided not to exercise the oversubscription option, focusing on the core **2%** dilution to move closer to public shareholding norms. IRFC shares recently touched a 52-week low of **Rs 104.40**, reflecting broader pressure in the railway PSU sector. Despite this price correction, the company’s financial foundation remains robust. In the quarter ending December 2025, IRFC reported its highest-ever quarterly profit after tax of **Rs 1,802 crore**, a **10.5%** increase year-on-year. The company’s Assets Under Management (AUM) reached a milestone of **Rs 4.75 lakh crore** by the end of 2025. It also achieved its full-year sanction target of **Rs 60,000 crore** within just nine months of the fiscal year, highlighting efficient execution and a strong project pipeline. Market sentiment is currently driven by the upcoming Union Budget 2026-27. Analysts anticipate a nearly **10%** increase in railway capital expenditure, potentially raising outlays to **Rs 2.75 trillion** from the previous **Rs 2.52 trillion**. This increased spending is expected to focus on safety systems like Kavach, track doubling, and rolling stock expansion. The stock is trading below its 50-day and 200-day moving averages, which sit near **Rs 118** and **Rs 125** respectively. However, with a Price-to-Earnings (P/E) ratio around **19.5** and a dividend yield of **1.53%**, many experts view the current price levels as a tactical entry point for long-term investors. Operationally, IRFC is evolving under its "IRFC 2.0" strategy. The corporation is diversifying its lending portfolio to include metro rail projects, renewable energy, and dedicated freight corridors. This shift is designed to reduce dependency on traditional railway leasing and improve long-term margins. The OFS presents a transitional phase for the stock, balancing short-term supply pressure with long-term growth prospects linked to India's massive infrastructure modernization. Investors are closely monitoring the **Rs 104** floor price as a critical benchmark for the stock's immediate trajectory.
Silver and Gold Prices Face Volatility Amid Tariff and Geopolitical Uncertainty
Precious metals are navigating a volatile trading landscape today as global geopolitical shifts and trade policy adjustments reshape investor sentiment. Gold and silver prices opened with a cautious tone following a period of intense fluctuations driven by the legal battle over US trade measures. In the domestic market, gold futures on the MCX for April delivery recently traded near **162,000 INR** per 10 grams. This follows a significant recovery from previous lows, as market participants reacted to the US Supreme Court striking down initial "reciprocal" tariffs. However, the immediate implementation of a flat **15%** global import tariff by the US administration has kept trade uncertainty at the forefront. Silver has shown even more dramatic movement, with MCX futures consolidating around the **285,000 INR** to **295,000 INR** per kg range. Despite recent daily softenings, silver remains up approximately **175%** year-on-year, supported by sustained industrial demand in the solar and electric vehicle sectors. On the international stage, spot gold is holding firm near **5,190 USD** per ounce. The yellow metal reached a three-week high earlier this week as the US Dollar Index eased to approximately **97.60**. A weaker dollar historically makes bullion more affordable for international buyers, providing a technical floor for prices. Geopolitical tensions remain a primary catalyst for safe-haven buying. Investors are closely monitoring the third round of nuclear negotiations between Washington and Tehran in Geneva. Any escalation in rhetoric or a breakdown in these talks typically triggers a flight to safety, bolstering gold’s position as a protective asset. Economic indicators are further complicating the outlook. Recent US GDP data showed an annualized growth of **1.4%**, trailing the **2.8%** forecast, while inflation data remains hotter than expected. This environment has led traders to anticipate at least three interest rate reductions of **25 basis points** each from the Federal Reserve throughout the year. Central bank activity continues to underpin the long-term bullish trend. The People’s Bank of China extended its gold-buying streak for a fifteenth consecutive month in January, contributing to a broader structural support for the metal. Current technical levels suggest immediate support for gold at **158,800 INR** on the MCX, with resistance seen at **163,000 INR**. Silver faces resistance near the **278,000 INR** mark, with strong buying interest reported in the lower support zones. Market participants are now pivoting toward upcoming weekly jobless claims and further trade policy clarity to determine if the current consolidation phase will lead to a fresh breakout toward record highs.
Bharti Airtel Explores Entry into NBFC Sector with Proposed Rs 20,000 Crore Investment
Bharti Airtel has officially transitioned from a loan distributor to a direct lender following the approval of its NBFC license by the Reserve Bank of India on February 13, 2026. This move is backed by a massive capital commitment of 20,000 crore INR to be injected into its subsidiary, Airtel Money Limited, over the next few years. The capital structure for this venture is split with Bharti Airtel contributing 70% and the promoter group, Bharti Enterprises, providing the remaining 30%. This investment aims to build a credit book potentially reaching 1 trillion INR by leveraging a 5x capital-to-loan ratio. The company is entering a high-growth market where NBFC assets under management are projected to grow by 15% to 17% in the 2026 fiscal year. While traditional bank credit growth is stabilizing around 12%, the digital lending space continues to expand as India’s formal credit-to-GDP ratio remains at 53%. Airtel is building its direct lending business on a proven foundation. Its existing Lending Service Provider platform has already disbursed over 9,000 crore INR in loans over the past two years. This transition allows the company to retain higher margins and gain full control over product design and risk assessment. The competitive landscape is intensifying with the entry of telecom-backed NBFCs. Airtel now competes directly with Jio Financial Services and established leaders like Bajaj Finance. With 463.4 million mobile customers in India as of late 2025, Airtel holds a massive data advantage for underwriting and customer acquisition. Risk management remains a primary focus for the new entity. The company employs over 500 data scientists to power its underwriting models and real-time risk monitoring. This strategy aims to maintain industry-leading performance metrics as the broader NBFC sector deals with delinquency rates of 6% to 7% in unsecured segments. On the stock market, Bharti Airtel closed at 1,997 INR on February 23, 2026, reflecting a market capitalization of 11.38 trillion INR. While the stock has seen a 5.37% decline year-to-date, its five-year returns exceed 256%, signaling long-term investor confidence in its diversification beyond core telecom. This strategic pivot positions Bharti Airtel to capture the underserved credit market, specifically targeting the 22% to 23% growth seen in the affordable housing and MSME segments. By transforming into a comprehensive digital services platform, the company is securing a recurring, high-margin revenue stream for the next decade.
**Nipun Goel: 2026 IPO Fundraising Projected to Exceed $20 Billion Amid Market Acceleration**
India's primary market has entered a historic expansion phase, with 2025 closing as a record-breaking year for public listings. Total fundraising through mainboard IPOs reached an all-time high of **1.76 lakh crore**, marking a **10% increase** over the previous record set in 2024. The momentum remains exceptionally high as we move into early 2026. Domestic stock exchanges now demonstrate the depth and liquidity required to fund "jumbo" listings that previously sought international markets. This shift is exemplified by landmark issues such as Hyundai Motor India and Swiggy, which paved the way for a massive pipeline of upcoming offerings. Current data shows over **247 companies** have draft documents (DRHPs) filed or awaiting approval with SEBI. In the first half of 2025 alone, **118 new draft papers** were submitted, more than double the volume seen in the same period a year prior. This surge indicates that promoters and private equity funds remain highly bullish on long-term valuation prospects. New-age technology and SaaS companies are spearheading this growth. In 2025, **18 tech startups** successfully listed, raising over **41,283 crore**. This sector is becoming more mature, with a notable shift toward companies showing clear paths to profitability. Fintech and e-commerce continue to dominate, while newer segments like quick commerce and electric vehicles are gaining rapid traction. Valuations have undergone a necessary recalibration. While 2024 saw average listing gains of **30%**, that figure moderated to approximately **10%** in 2025. Investors have become increasingly selective, focusing on business quality and cash flow predictability rather than speculative growth. This "realistic pricing" trend is helping stabilize the market and prevent overheating. Private equity and venture capital exits are a major driver of current activity. Offer for Sale (OFS) components accounted for roughly **45%** of total IPO proceeds last year. Promoters and early-stage backers are utilizing the current market strength to monetize holdings, with nearly **1 lakh crore** in shares sold through these exits. Retail participation remains a cornerstone of the Indian market. While individual application sizes have moderated slightly, the total number of retail investors has surpassed **108 million**. Significant SIP inflows and robust domestic institutional demand provide a strong floor for new issuances, even during periods of global volatility. The outlook for 2026 points toward another blockbuster year. Heavyweights like Reliance Jio, OYO, and PhonePe are among the marquee names expected to hit the floor. With the Indian economy projected to grow above **6%**, the IPO ecosystem is structurally positioned to absorb annual primary issuances of up to **2%** of the total market capitalization. [India's IPO Market Trends](https://www.youtube.com/watch?v=VjrV92p67u0) This video provides a comprehensive breakdown of the record-breaking 2025 IPO season and offers expert projections for the major listings expected throughout 2026. http://googleusercontent.com/youtube_content/0
Nvidia Earnings Boost Tech Sector; IT Stocks Including Infosys and TCS in Focus
Market dynamics for Indian IT stocks are shifting as the sector navigates a high-stakes transition between global AI-led rallies and local volatility. Recent record earnings from Nvidia have provided a critical floor for market sentiment, while breakthrough tools from AI startup Anthropic continue to challenge traditional service models. Nvidia Records and Sector Support Nvidia reported a monumental fourth quarter with revenue hitting $68.1 billion, a 73% increase year-over-year. This surge was primarily fueled by record Data Center revenue of $62.3 billion. For the full fiscal year 2026, the chipmaker's revenue reached $215.9 billion, marking a 65% rise. This performance has reignited confidence in the global AI infrastructure cycle, which serves as a long-term growth driver for Indian firms providing AI implementation and integration services. AI Disruption and Market Correction The Nifty IT index has faced significant pressure, dropping approximately 21% in February 2026. This marks the steepest monthly decline for the sector in over 23 years. The sell-off was triggered by the debut of Anthropic’s "Claude Code" and "Claude Cowork" agentic AI tools. These platforms have demonstrated the ability to automate complex coding tasks and back-office functions, leading to fears that the traditional labor-arbitrage model—worth over $200 billion annually in exports—could be structurally impaired. Performance of Key Players Despite the broader index slump, individual stock performance reflects varying degrees of resilience based on AI integration: - TCS and Infosys have seen declines of roughly 19% to 21% this year as investors weigh their high exposure to application services. - Wipro has faced a steeper correction of 24%, while HCLTech and Tech Mahindra have dropped 18% and 16% respectively. - Mid-tier firms such as Coforge and Persistent Systems are being monitored closely as they attempt to pivot toward higher-margin AI consulting. Strategic Pivot and Monetization The industry is moving from experimental pilots to scaled execution. Nasscom projects Indian tech revenue to reach $315 billion in FY26, with a growth rate of 6.1%. AI-specific revenue is expected to contribute $10–12 billion of this total. Major firms are already reporting measurable AI income: - TCS has established an annualized AI revenue run rate of $1.8 billion. - Infosys reports that AI now accounts for 5.5% of its total revenue, generating $275 million. - HCLTech attributes 4% of its topline to AI-driven earnings, totaling $146 million. The Road Ahead Market analysts suggest the sector is entering a "Human + AI" phase where revenue growth is decoupling from traditional hiring. While headcount grew marginally by 1.35 lakh to a total of 5.9 million in 2026, the focus has shifted to domain-specialized roles. Total IT spending in India is forecasted to hit $176.3 billion by the end of the year, driven by a 20.5% surge in data center investments and a 17.6% rise in software spending. Strategic alliances, such as the recent partnership between Infosys and Anthropic to deploy Claude AI for enterprise clients, indicate that leading firms are choosing to integrate disruptive tools rather than compete against them. This transition is expected to redefine the industry’s profitability through platform subscriptions and outcome-based pricing models.
IRFC Shares Steady as Government Forgoes Greenshoe Option in OFS; Retail Tranche Opens
Indian Railway Finance Corporation (IRFC) remains a central focus in the capital markets as the government proceeds with its stake divestment strategy. In a recent development, the government decided not to exercise the **oversubscription (greenshoe) option** in its Offer for Sale (OFS). This decision followed moderate participation from institutional investors during the initial bidding phase. The OFS was launched with a base offer of **2% equity**, equivalent to approximately **26.14 crore shares**. While an additional **2%** was available via the greenshoe option, the final sale is expected to remain limited to the base portion. The floor price for the transaction was set at **104 per share**, representing a discount to the prevailing market price at the time of the announcement. Market Performance and Valuation Following the OFS news, IRFC shares experienced downward pressure, touching a **52-week low** near the **104.80** mark. This correction reflects the market's absorption of the additional share supply. Despite the short-term price volatility, the company maintains a significant market capitalization of approximately **1,36,600 crore**. The stock currently trades at a Price-to-Earnings (P/E) ratio of approximately **19.50**, with a Price-to-Book (P/B) value of **2.71**. For the trailing twelve months, the Earnings Per Share (EPS) stands at **5.36**, supported by a consistent dividend yield of **1.53%**. Financial Highlights and Growth IRFC continues to report a resilient financial profile, characterized by record-breaking profitability. For the quarter ended December 2025, the company posted its **highest-ever quarterly Profit After Tax (PAT)** of **1,802 crore**, marking a **10.5% increase** year-on-year. * **Assets Under Management (AUM):** Reached an all-time high of **4.75 lakh crore**. * **Net Interest Margins (NIM):** Improved by over **8% YoY**, driven by disciplined liability management. * **Revenue:** Witnessed a marginal dip of **1.5%**, totaling **6,661 crore** for the quarter, primarily due to a moratorium extension on certain lease agreements. * **Sanctions:** The company achieved its full-year sanction guidance of **60,000 crore** within the first nine months of the fiscal year. Strategic Shift: IRFC 2.0 Under its "IRFC 2.0" strategy, the corporation is evolving from a single-client model focused solely on the Ministry of Railways to a broader multi-client ecosystem. This includes financing for allied infrastructure and the **Dedicated Freight Corridor (DFCCIL)**. Recent global engagement remains strong, with IRFC securing a **400 million USD** loan from a consortium of Japanese banks in February 2026. This follows a **300 million USD** facility raised in late 2025, aimed at optimizing borrowing costs and diversifying its capital base. The company maintains a **zero Non-Performing Asset (NPA)** track record, ensuring high asset quality as it expands its footprint across India's transport and infrastructure landscape. While the OFS has introduced near-term supply pressure, the underlying fundamentals remain supported by robust credit growth and a dominant role in national infrastructure financing.