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Updated Regulations for M&A Financing and Loans Against Shares
In a significant shift for Indiaās corporate landscape, the Reserve Bank of India has introduced final guidelines allowing commercial banks to provide acquisition financing. This move, effective April 1, 2026, overturns a long-standing prohibition and provides domestic companies with a more cost-effective alternative to expensive private credit and foreign funding. The new framework specifically permits banks to refinance a target company's existing debt. This is allowed only when such refinancing is considered integral to the acquisition finance. To maintain financial stability, the regulator has set a post-acquisition debt-to-equity ratio cap of 3:1 for the merged entity. Banks are now authorized to finance up to 70% of an acquisitionās total value. The remaining 30% must be funded by the acquirer through equity or internal accruals. To prevent over-leverage across the system, the RBI has raised the bank-level exposure limit for acquisition finance to 20% of eligible capital, up from the initially proposed 10% in draft rules. Eligibility for these loans is restricted to high-performing entities. Acquiring companies must have a minimum net worth of 500 crore INR and must have recorded net profits for the three preceding financial years. If the acquirer is unlisted, they must also hold an investment-grade credit rating before any funds are disbursed. The policy change comes as Indiaās M&A market experiences a massive surge. In 2025, financial sector deals alone reached 8 billion USD, marking a 127% increase year-on-year. Broad market activity in August 2025 peaked at over 20 billion USD in a single month, driven by strategic consolidations in energy, retail, and technology. Market liquidity remains a key focus as the central bank maintains a repo rate of 5.25%. While global bond yields have shown volatility, Indian macro-indicators remain stable, with GDP growth projected at 6.5% for the 2026 fiscal year. This regulatory easing is expected to further accelerate credit growth, which is forecast to reach 11.5% to 12.5% over the next two years. Strategic control is a central requirement of the new rules. Acquisition financing is permitted only where the buyer seeks to cross material ownership thresholds, ranging from 26% up to 90%. This ensures that bank capital is utilized for genuine business combinations rather than short-term financial engineering. In addition to corporate rules, the regulator has increased the individual borrowing limit against shares to 1 crore INR per person. For capital market activities like IPO and FPO subscriptions, the per-individual limit has been set at 25 lakh INR, requiring a minimum cash margin of 25%.
PFRDA Anticipates Increase in Bank-Backed Pension Fund Managers
The Indian pension sector is undergoing a significant structural shift as major financial institutions transition from distributors to fund managers. The Pension Fund Regulatory and Development Authority (PFRDA) has confirmed that Bank of Baroda and ICICI Bank have formally submitted applications to sponsor their own pension funds. ICICI Bank recently completed a **2.035 billion** acquisition of ICICI Prudential Pension Funds Management to bring the business directly under its corporate umbrella as of January 2026. Axis Bank is currently finalizing its application, while a consortium involving Union Bank of India and Dai-ichi Life is actively exploring entry into the space. This wave of institutional interest follows new PFRDA guidelines that allow Scheduled Commercial Banks to independently set up pension funds, provided they meet strict net worth and prudential criteria. Market Momentum and Scale The National Pension System (NPS) and Atal Pension Yojana (APY) continue to show aggressive growth. As of early 2026, the combined Assets under Management (AUM) have surpassed **16 lakh crore**. The total subscriber base has expanded to over **9 crore**, reflecting a successful push into the private and informal sectors. New regulatory frameworks are further driving this adoption. The Multiple Scheme Framework (MSF), launched in late 2025, has already crossed **145 crore** in AUM within just four months. This framework has attracted over **1.5 lakh** new accounts by offering subscribers up to **100%** equity exposure and segment-specific investment strategies. Regulatory and Fee Reforms To accommodate increased competition, the PFRDA has overhauled the fee structure. Effective April 1, 2026, a new slab-based Investment Management Fee (IMF) will be implemented for the non-government sector. The revised IMF rates are as follows: * **0.12%** for AUM up to **25,000 crore** * **0.08%** for AUM between **25,000** and **50,000 crore** * **0.06%** for AUM between **50,000** and **1.5 lakh crore** * **0.04%** for AUM exceeding **1.5 lakh crore** The regulator has also increased the maximum entry age to **85 years** and simplified exit procedures. Non-government subscribers can now withdraw up to **80%** of their corpus as a lump sum, provided they maintain a minimum **20%** annuity purchase. These moves aim to bring **25 crore** private-sector citizens into the pension net over the next five years. Performance and Outlook NPS returns remain competitive despite market volatility. Composite schemes with moderate equity exposure are generating returns above **9%**, while pure equity tiers have seen historical five-year returns ranging between **16%** and **21%**. The entry of major banks as sponsors is expected to deepen the market and improve digital distribution. PFRDA Chairperson Sivasubramanian Ramann has emphasized that distribution must become predominantly digital to reach the target of **100 cities** by March 2026.
Mizuho Financial Group Partners With Avendus to Strengthen Global Corridor Connectivity
**Mizuho-Avendus: The Japan-India Investment Corridor** Mizuho Financial Group is accelerating its expansion into India, positioning the country as a critical pillar of its global growth strategy. Under the leadership of CEO Masahiko Kato and Group CEO Masahiro Kihara, the bank is actively constructing a robust investment corridor to facilitate Japanese capital entry into the Indian market. **Strategic Acquisition of Avendus Capital** In late December 2025, Mizuho Securities reached an agreement to acquire a majority stake in **Avendus Capital** from KKR. The deal involves purchasing between **61.6% and 78.3%** of shares for approximately **$523 million** (Ā„81 billion). This acquisition transforms Avendusāa leading Indian investment bank and wealth managerāinto a consolidated subsidiary. It fills a vital "missing piece" in Mizuho's investment banking portfolio, complementing its 2023 purchase of the U.S. advisory firm Greenhill. **Capital Flows and Sector Focus** Japanese investor interest in India has reached unprecedented levels. Japan has committed to a **10 trillion yen** investment target over the next decade. Mizuhoās strategy focuses on high-growth sectors where Japanese precision meets Indian scale: * **Manufacturing & Auto:** Japanese automakers are leading an **$11 billion** investment push, with Suzuki alone committing **$8 billion** to expand production. * **Semiconductors:** Partnerships like Tokyo Electron and Tata Electronics are establishing a domestic chip-making ecosystem. * **Green Energy:** Collaborative projects in green hydrogen and solar energy are being prioritized to meet net-zero goals. **Market Dynamics and Economic Outlook** The corridor is supported by Indiaās strong economic performance. Indiaās GDP growth is projected at **7.2%** for the **2025/26** fiscal year, making it the fastest-growing major economy. Despite global geopolitical shifts and trade tariffs, bilateral trade remains resilient. As of late 2025, Japan's exports to India surged **16.4%** year-on-year to reach **Ā„227 billion** monthly, while Indian exports to Japan also showed double-digit growth in key categories like electronics and automotive parts. **A Catalyst for Regional Integration** Mizuho aims to act as a "catalyst for change," bridging the two economies. Recent high-level discussions between Masahiko Kato and Indian leadership emphasized deepening financial cooperation in infrastructure and digital innovation. By integrating Avendusās local market depth with Mizuhoās global institutional network, the bank provides Japanese corporates with a seamless entry pointāfrom conceptual strategy to large-scale capital deployment.
US Stocks Rise as Cooling Inflation Boosts Expectations for June Rate Cut
Market Brief: U.S. Inflation and Fed Outlook U.S. consumer prices cooled significantly at the start of **2026**, with the headline annual inflation rate dropping to **2.4%** in January. This result beat economist expectations of **2.5%** and represents the lowest inflation level since **May 2025**. The month-over-month Consumer Price Index (CPI) rose by a modest **0.2%**. This cooling trend has revitalized expectations for interest rate adjustments, as the Federal Reserve looks for sustainable progress toward its **2%** long-term target. Interest Rate Futures and Fed Odds Financial markets reacted immediately to the cooling data. Interest rate futures now suggest an increased probability of a rate cut by **June 2026**. This follows a "pause" at the January FOMC meeting, which kept the benchmark federal funds rate at a range of **3.50% to 3.75%**. Current market pricing indicates roughly **63 basis points** of total cuts expected for the year. While a move in March remains unlikely with an **82% to 86%** probability of no change, the momentum for a mid-year pivot is growing as labor market signals also begin to stabilize. Sector Performance and Key Indicators * **Core Inflation:** The core CPI, which strips out volatile food and energy costs, edged down to **2.5%** year-over-year from **2.6%** in December. * **Energy and Goods:** Energy prices fell **1.5%** in January, driven by a **3.2%** drop in gasoline. Used car and truck prices also declined by **1.8%**. * **Shelter and Services:** Shelter costs remain a "sticky" component, rising **0.2%** and acting as a primary contributor to the remaining inflation. Airline fares saw a sharp spike of **6.5%**. Market Reaction U.S. equity indices turned positive following the report. The **S&P 500** futures erased earlier losses, reflecting optimism that the Fed may not need to keep rates "higher for longer" through the second half of the year. In the commodities space, gold futures climbed **1.3%** to reach **$4,985** per ounce, while silver surged nearly **5%** to **$78.72**. These moves highlight a shift toward assets that typically benefit from a lower interest rate environment. Economic Context The U.S. labor market continues to show resilience but is no longer "overheated." Monthly job growth is projected to average around **67,000** for the year, with the unemployment rate currently holding at **4.4%**. With the current Fed Chair's term expiring in **May 2026**, the transition in leadership adds a layer of policy uncertainty. However, the current data-dependent approach remains focused on balancing the cooling inflation with a stable employment backdrop.
Fortis Healthcare Q3 Net Profit Declines 22% to Rs 197 Crore
Fortis Healthcare has reported a significant 22% year-on-year decline in its consolidated profit after tax (PAT) for the third quarter ending December 2025. The net profit fell to 197 crore, down from 254 crore in the corresponding period last year. This dip was primarily driven by an exceptional loss of 55.2 crore, largely attributed to the implementation of new labor codes. Despite the bottom-line pressure, operational revenue showed strong resilience. Top-line income grew by 17.5% to 2,265 crore, compared to 1,928 crore in the previous year. This growth was fueled by robust performance in specialized clinical areas, specifically renal sciences and orthopedics, which saw growth of 27% and 20% respectively. Market performance for Fortis stock remains a focal point for investors. As of February 13, 2026, the share price closed at 918.80 on the NSE, reflecting a 1.05% intraday decline following the earnings announcement. The company currently maintains a market capitalization of approximately 69,180 crore, with shares trading between a 52-week high of 1,104.30 and a low of 587.10. Strategically, the group is aggressively pursuing an expansion-led growth model. A key highlight this quarter was the acquisition of the 125-bedded People Tree Hospital in Bengaluru for 430 crore. This move is part of a broader plan to scale its presence in the Bengaluru cluster from 900 beds to over 1,500 beds in the near future. The broader Indian healthcare sector is currently benefiting from a favorable policy environment following the Union Budget 2026. The budget has repositioned healthcare as a vital economic infrastructure, introducing the 10,000 crore Biopharma Shakti program and establishing five regional medical tourism hubs. These initiatives are expected to drive long-term demand for private hospital operators. Current industry trends indicate a steady rise in Average Revenue Per Occupied Bed (ARPOB), which has increased by 10% to 16% across leading networks. This shift is driven by a move toward higher-acuity procedures in oncology and neurology. Furthermore, the diagnostics segment remains a high-margin contributor, with top players reporting EBITDA margins between 25% and 35%. Looking ahead, Fortis aims to mitigate one-time costs through improved operational leverage and network optimization. With a net debt-to-EBITDA ratio sitting comfortably at 0.41x, the company is well-positioned for further inorganic growth and capacity additions across its mature hospital assets.
Rivian Shares Rise 20% Following Updated Delivery Forecast and Smaller SUV Plans
Rivian shares surged 20.07% on Friday, February 13, 2026, reaching approximately $16.85. The rally was fueled by the companyās optimistic outlook for 2026, centered on its pivot toward more affordable mass-market electric vehicles. The automaker reported its first-ever full year of positive gross profit in 2025, a significant $144 million milestone that marks a $1.3 billion improvement over the previous year. This shift toward profitability comes as the company successfully reduced production costs and grew its high-margin software and services revenue, which surged 222% year-over-year to $1.56 billion. Investors are primarily focused on the upcoming R2 SUV, which is positioned as a direct competitor to the Tesla Model Y. Priced at approximately $45,000, the R2 is expected to begin customer deliveries in the second quarter of 2026. Management projects that this new model will drive a 53% jump in total deliveries for the year. Projected delivery figures for 2026 are set between 62,000 and 67,000 vehicles. While production of the flagship R1T and R1S models is expected to remain flat, the R2 is expected to represent nearly half of the total volume. Rivian plans to scale this production by adding a second shift at its Illinois plant by late 2026, targeting a rate of 4,000 units per week. The strategic push toward affordability is a direct response to a challenging market environment. The expiry of federal EV tax credits last year has pressured sales across the industry, forcing manufacturers to lower entry prices to attract a broader buyer base. Despite the positive momentum, 2026 is being framed as a transitional year. The company expects an adjusted EBITDA loss between $1.8 billion and $2.1 billion as it absorbs the high capital costs of launching the R2 platform. Capital expenditures are projected to double this year, reaching roughly $2 billion. Liquidity remains a key strength for the company. Rivian ended 2025 with $6.59 billion in total liquidity, including $6.1 billion in cash and short-term investments. This provides a necessary cushion as the company builds its second factory in Georgia and continues its software joint venture with Volkswagen. Market analysts remain divided on the near-term outlook. Some firms have set price targets as high as $25, citing the success of the R1S as the best-selling premium electric SUV in several U.S. states. Others remain cautious, pointing to the intensive capital requirements and the risk of production hurdles during the R2 ramp-up. The broader sector is watching closely as Rivian attempts to transform from a luxury niche brand into a high-volume player. The success of this transition hinges on the R2's ability to maintain the brand's premium appeal while meeting the price expectations of the mass market.
US Stocks: Consumer Inflation Slows to Lowest Level Since May
US inflation cooled more than expected in January 2026, reaching its slowest annual pace since last spring. According to data released by the Bureau of Labor Statistics on February 13, the Consumer Price Index (CPI) rose 2.4% year-over-year. This figure fell below the 2.7% recorded in December and beat the 2.5% consensus forecast from economists. On a monthly basis, the headline index increased by 0.2%, down from the 0.3% rise seen in the previous month. The slowdown was primarily driven by a significant dip in energy costs. Energy prices fell 1.5% in January alone, with gasoline prices plunging 3.2% for the month and 7.5% over the past year. Core inflation, which excludes volatile food and energy sectors, remained slightly more persistent. The core CPI rose 0.3% in January, matching analyst expectations. On an annual basis, core inflation stood at 2.5%, down from 2.6% in December. This marks the lowest core reading since March 2021, signaling a gradual return toward the Federal Reserve's long-term targets. Sector-specific performance showed a mix of pressures. While shelter costs rose at a more moderate 0.2% monthly paceādown from 0.4% in Decemberāother areas saw sharp increases. Airline fares surged by 6.5%, and personal care services grew by 1.2%. Conversely, used cars and trucks saw a 1.8% decline, providing additional downward pressure on the headline figure. The market response to the data was broadly positive. Equity futures trended higher while the US Dollar weakened against major currencies. Bond yields also retreated as traders adjusted expectations for the Federal Reserve's next move. Current market pricing suggests a 10% probability of a rate cut in March, though the central bankās recent steady stance at 3.50%-3.75% indicates a cautious approach remains. Financial analysts noted that while the cooling is a welcome sign, potential headwinds remain for 2026. The implementation of new tax cuts and the ongoing pass-through of trade tariffs could impact price stability in the coming quarters. For now, the January report provides a rare bit of relief for consumer wallets and keeps the possibility of future interest rate cuts on the table for mid-year.
SEBI Considers Easing Reporting Requirements for Stock Brokers
In a major push for the ease of doing business, the Securities and Exchange Board of India (Sebi) has proposed significant relaxations to reporting norms for stock brokers. A key highlight of the proposal is the exemption of specific demat accounts from mandatory "tagging" requirements. This relief is aimed primarily at stock brokers who also operate as primary dealers, reducing the administrative burden of categorizing every account under their management. This regulatory shift coincides with the implementation of the new Sebi Stock Broker Regulations 2026, which officially replaced the 34-year-old 1992 framework on January 7, 2026. The updated code has streamlined compliance by cutting the regulation's length from 59 pages to just 29. It introduces modern provisions such as electronic record-keeping, joint inspections by exchanges and depositories, and a minimum net worth requirement of 1 crore for trading members. Market performance on February 13, 2026, reflected high volatility as these regulatory updates were processed alongside global headwinds. The BSE Sensex plummeted 1,048.16 points to close at 82,626.76, while the Nifty 50 dropped 336.10 points to finish at 25,471.10. This 1.30% decline was largely driven by a sharp selloff in the IT and metal sectors, with investor sentiment dampened by global tech concerns and shifting expectations regarding U.S. interest rates. Total market capitalization for BSE-listed companies fell to approximately 465 lakh crore (5.13 trillion USD), marking a one-day wealth erosion of nearly 7 lakh crore. Despite the broad downturn, specific stocks showed resilience. Bajaj Finance gained 2.57%, while Eicher Motors rose 1.54%. In contrast, Hindalco Industries emerged as a top loser, falling 5.75%, followed by Hindustan Unilever which declined 4.34%. Beyond broker reporting, Sebi has introduced a one-year special window from February 5, 2026, to February 4, 2027, allowing for the transfer and dematerialization of physical securities purchased before April 2019. This initiative addresses long-standing investor grievances and supports the broader transition to a fully digital securities ecosystem. These cumulative measures indicate a shift from reactive enforcement to preventive, digital-first compliance. By allowing brokers to undertake activities under other financial regulators and simplifying reporting for primary dealers, the regulator aims to lower the cost of entry for new fintech players while maintaining a robust safety net for the 465 lakh crore market. Investors and intermediaries are now transitioning to these consolidated standards to ensure market integrity during this period of heightened volatility.
US Stocks Stable Following Softer-than-Expected Inflation Data
Market Brief: Friday, February 13, 2026 Wall Streetās primary benchmarks showed mixed to muted performance on Friday. Markets spent the session digesting critical inflation data and navigating a sharp rotation out of communication services and tech-heavy sectors. Inflation Cooling Below Estimates The January Consumer Price Index (CPI) report provided a boost to Federal Reserve rate-cut advocates. Headline inflation rose **0.2%** for the month, coming in slightly lower than the **0.3%** forecast. On an annual basis, the inflation rate slowed to **2.4%**, a notable deceleration from the **2.7%** seen in late 2025 and lower than the expected **2.5%**. Core CPI, which excludes volatile food and energy costs, remained stable at **2.5%** annually. This aligns with broad market expectations and reinforces the narrative that price pressures are gradually easing toward the central bank's long-term targets. Index Performance and Sector Weighs Despite the favorable inflation print, the major indexes struggled to maintain upward momentum. The **S&P 500** sat near **6,832.76**, while the **Dow Jones Industrial Average** hovered around the **49,451** mark. The **Nasdaq Composite** faced more significant pressure, recently sliding to **22,597.15**. The communication services sector was the primary laggard on Friday. Shares in this space, along with software and IT services, were hit by a wave of selling as investors reassessed growth forecasts. Industry heavyweights like **Cisco Systems** dropped as much as **10%** following disappointing forward guidance, while firms like **Shopify** also saw significant declines. Interest Rates and Fed Outlook The "softer-than-expected" data has kept the door open for Federal Reserve policy easing in 2026. The 10-year Treasury yield slipped to **4.075%** following the report, reflecting increased demand for bonds as traders bet on upcoming cuts. Market participants are currently pricing in a high probability of a rate reduction by June. There is significant focus on the impending leadership transition at the Fed, with current expectations leaning toward three potential quarter-point cuts over the next twelve months to bring the benchmark rate down from its current **3.5%ā3.75%** range. Labor Market and Economic Context The focus on inflation follows a robust January jobs report that previously tempered expectations for aggressive easing. With unemployment holding steady at **4.3%** and nonfarm payrolls showing resilience, the Fed remains in a "data-dependent" mode, balancing a strong labor market against the steady cooling of consumer prices. Investors remain cautious regarding the software and services sectors, where concerns over structural shifts and earnings misses have overshadowed the broader positive macroeconomic data.
SEBI Approves BSE Focused Midcap Index Futures and Options Contracts
BSE has secured approval from the Securities and Exchange Board of India to introduce derivatives on its Focused Midcap Index. This new offering provides traders with concentrated exposure to 20 of the most liquid and prominent mid-sized companies in India. The launch features monthly futures and options contracts designed to comply with the latest single-expiry regulations. These rules streamline market operations by ensuring that index-specific derivatives expire on a unified schedule, enhancing liquidity and reducing complexity for retail and institutional participants. The BSE Focused Midcap Index currently tracks a basket of 20 high-performing stocks. As of February 12, 2026, the index stood at 24,223.32 points. Recent market data shows the index has maintained a cumulative market capitalization of approximately 17.12 trillion INR. Key sector weightages within the index highlight a diversified exposure. The Banking sector holds the largest share at 20.68%, followed by Capital Goods at 10.07% and Information Technology at 7.80%. Other significant contributors include Telecom at 7.30% and Industrial Products at 7.19%. Individual stock performance within the index has shown resilience despite broader market volatility. Recent top gainers among the constituents include Federal Bank, which rose by 0.70% to 289.10 INR, and Cummins India, gaining 0.51% to 4,452.10 INR. Other major players like AU Small Finance Bank and Dixon Technologies also remain core components of the index. On a broader scale, the Indian equity market has faced recent pressure. On February 13, 2026, the BSE Sensex dropped 1.25% to 82,626 points, while the Nifty 50 fell 1.30% to 25,471. The mid-cap segment, while under pressure with a 1.8% decline in the broader Nifty Midcap index, continues to be a focal point for investors seeking higher growth potential compared to large-cap stocks. The introduction of these derivatives is expected to provide a specialized hedging tool. By focusing on only 20 stocks rather than a broader mid-cap index, the product offers a sharper instrument for managing risk or gaining leveraged exposure to the mid-cap growth story. Liquidity in the mid-cap space remains a key theme as institutional flows shift. While the broader BSE MidCap Index closed near 49,789 points recently, the "Focused" version aims to capture the volatility and returns of the most active names in the segment. Traders can now utilize these monthly contracts to navigate a market environment marked by sector rotation and shifting economic indicators. The move reinforces BSE's strategy to expand its derivatives suite and cater to the evolving needs of the Indian trading community.
NCDEX Appoints TCS as Technology Partner for Equity and Derivatives Market Launch
The National Commodity & Derivatives Exchange (NCDEX) has officially partnered with Tata Consultancy Services (TCS) in a landmark 10-year technology agreement. This strategic move aims to transform the exchange from a commodity-heavy platform into a diversified financial hub, facilitating its long-awaited entry into the equity and equity derivatives sectors. As of February 13, 2026, the market environment for this transition is marked by intensified regulatory scrutiny and shifting economic indicators. While NCDEX is preparing its infrastructure, the Securities and Exchange Board of India (SEBI) has recently signaled a cautious approach. The regulator has directed new entrants to focus on establishing a liquid cash equity market for at least six months before launching high-risk derivatives products. To support this expansion, NCDEX successfully raised 770 crore INR from 61 domestic and international investors. These funds are powering the deployment of TCS BaNCS and Quartz solutionsāa high-performance, low-latency technology stack designed to handle complex multi-asset trading. The infrastructure is built to cater to the "Bharat First" philosophy, targeting rural and Tier 2 investors with innovative products like 250 INR SIPs. In the broader market today, volatility remains high. The Nifty 50 has recently faced pressure, settling below the 25,500 mark. Meanwhile, the commodity segment continues to show resilience. Agricultural indices show steady performance in core contracts: Castor seed is trading near 6,435 INR per quintal, while Turmeric has stabilized around 14,916 INR. Economic fundamentals provide a supportive backdrop for the exchangeās growth. Indiaās GDP growth forecast for FY26 has been revised upward to 7.4%, and the RBI recently maintained the repo rate at 5.25% with a neutral stance. These factors, combined with a 9.4% rise in castor seed sowing and robust export demand for agri-commodities, reinforce NCDEX's position as it moves toward a multi-asset future. The 10-year pact with TCS ensures that NCDEX will operate on a scalable, enterprise-grade surveillance and trading platform. This technology overhaul is essential for meeting SEBIās latest mandates, which require exchanges to demonstrate superior technical governance and price discovery mechanisms before broadening their retail derivative offerings. By leveraging a workforce expansion of 150 new professionals and high-frequency trading expertise from global partners, the exchange is positioning itself to bridge the gap between rural agricultural markets and mainstream capital market investments.
Morgan Stanley Considers $500 Million India Fund Amid Asset Realignment
Morgan Stanley Investment Management is actively sounding out investors to transition a portfolio of eight Indian healthcare assets into a specialized continuation vehicle. The firm is targeting a fundraise of **$500 million** for this new strategy, reflecting a broader shift toward secondary-market solutions to manage mature private equity holdings. Key assets identified for the transfer include Omega Hospitals and RG Scientific Enterprises. RG Scientific stands as India's largest urology-focused hospital chain, currently operating **14 hospitals** with more than **500 beds** across seven major cities. These assets are being positioned at a time when the Indian hospital sector is maintaining a robust growth trajectory, with revenues projected to climb **16% to 18%** in the 2026 financial year. The move comes as the Indian healthcare market experiences a surge in transaction intensity. Secondary market exits in India reached approximately **$12.9 billion** in the previous year, accounting for nearly **48%** of all private equity exit value. This trend is supported by high liquidity and a maturing investor base that increasingly prefers specialized healthcare platforms. Operational metrics within the sector remain strong. Listed hospital groups are reporting occupancy levels between **62% and 64%**, while Average Revenue Per Occupied Bed (ARPOB) is expected to expand by **6% to 8%** this year. These healthy margins, currently hovering around **23.7%**, provide a stable backdrop for Morgan Stanley's transition of these assets into a long-term vehicle. Investor interest is further fueled by structural tailwinds, including a **12.6% increase** in government healthcare budget allocations and a rapidly growing medical tourism market, which was valued at **$8.7 billion** in 2025. With private equity deals in the hospital space jumping **166%** in recent quarters, the continuation fund model allows managers to retain high-performing assets while providing liquidity to existing limited partners. This strategic pivot underscores a wider trend in India's **$193 billion** hospital market, where institutional players are moving away from simple growth capital toward controlling stakes and portfolio consolidation to capture long-term value in a consolidating landscape. [Overview of Morgan Stanley's healthcare investment strategy](https://www.youtube.com/watch?v=3Hs9D_A38ks) This video provides additional context on the budget initiatives and infrastructure trends that are currently shaping the investment climate for Indian healthcare assets. http://googleusercontent.com/youtube_content/0
SEBI Approves IPO Applications for Five Companies Including Duroflex and Premier Industrial Corporation
The Indian primary market is witnessing a significant surge in activity as the Securities and Exchange Board of India (SEBI) grants approval for a diverse range of Initial Public Offerings (IPOs). This momentum follows a robust performance in the current fiscal cycle, where listing gains have averaged approximately 34.28%, signaling sustained investor appetite despite global volatility. Recent approvals for Premier Industrial Corporation, Duroflex Limited, Virupaksha Organics, Hexagon Nutrition, and Om Power Transmission highlight a strategic focus on industrial expansion and the scaling of specialized sectors. These upcoming issues, featuring a mix of fresh equity and secondary sales, are poised to tap into a market where capital raised by Indian firms has seen a nearly 95% year-on-year increase. **Premier Industrial Corporation** This welding consumables specialist is entering the market with an offer of 2.79 crore equity shares. The issue includes a fresh issue of 2.25 crore shares designed to capitalize on an Indian welding consumables market projected to reach $2.1 billion by 2033. The companyās financial profile is strong, reporting a 59.31% CAGR in profit after tax between 2023 and 2025, with a Return on Equity (RoE) of 29.73%. **Duroflex Limited** A leader in the sleep solutions industry, Duroflex is set to raise ā¹183.60 crore through fresh equity, alongside an offer for sale of 2.26 crore shares. Holding an 8% share of the branded mattress market, the company plans to utilize proceeds to expand its "COCO" retail stores and strengthen its manufacturing footprint across its seven existing facilities. **Virupaksha Organics** Positioned within the pharmaceutical sector, this API manufacturer has filed for a ā¹740 crore issue. The capital is earmarked for a new manufacturing unit in Andhra Pradesh to meet global demand. The company reported revenues of ā¹5,471.93 million in fiscal 2025, with exports contributing over 51% of its total operations, reflecting a significant international footprint. **Hexagon Nutrition** This research-oriented nutrition player is pursuing an entirely secondary offering (OFS) of 3.09 crore shares. Hexagon is looking to leverage its position in a clinical nutrition sector that is forecast to double to $4.3 billion by 2033. The company maintained a 12.33% EBITDA margin in fiscal 2025 and aims to enhance its corporate brand through this listing. **Om Power Transmission** Reflecting the growth in Indiaās energy infrastructure, this EPC player is launching a 1.00 crore share IPO. The company holds an unexecuted order book of ā¹776.19 crore as of late 2025. Its revenue has grown at a CAGR of 52.45% over the last three years, supported by a massive 41.76% Return on Capital Employed (RoCE). The broader economic backdrop remains supportive, with Indiaās GDP growth projected at 6.5% for 2025. While market sentiment has shown occasional caution due to geopolitical shifts, the steady influx of retail capital via SIPs and the resilience of industrial sectors continue to provide a solid foundation for these upcoming debuts.
FTSE 100 and 250 Steady as Investors Weigh AI Sentiment Against Defense Sector Gains
Market Brief: London Indices Navigate AI Volatility and Defense Pledges The London stock market maintained a cautious stance on Friday, February 13, 2026. Global sentiment remained fragile following a week of disruption concerns linked to rapid advancements in artificial intelligence. The **FTSE 100** edged down **0.2%** to **10,385.73** by midday. Despite the daily dip, the blue-chip index is positioned for a marginal weekly gain after rebounding from a sharper **0.7%** decline in the previous session. The mid-cap **FTSE 250** followed a similar trajectory, sliding **0.1%** to **23,280.53**. Investors are currently balancing domestic earnings success against upcoming United States inflation data, which historically dictates broader market direction. Sector Performance and AI Jitters Concerns over AI-driven disruption to traditional business models have triggered a volatile week for the UKās technology and financial sectors. Life insurers and banks saw weekly losses exceeding **4%** at various points. However, a selective rebound occurred on Friday. **RELX** led the recovery with a gain of **5.4%**, while credit specialist **Experian** rose **4.3%**. Banking performance was mixed. **NatWest** reported a significant **24%** jump in annual profit and announced a **Ā£750 million** share buyback. Despite these strong figures, its shares fell **3.3%** as the market had largely priced in the optimistic outlook. Defense Sector Gains The aerospace and defense sector emerged as a primary outlier, gaining **2%** on Friday. This upward movement is driven by expectations of deeper European military cooperation. Defense Secretary John Healey confirmed that allies have pledged up to **$35 billion** in new military aid for Ukraine. This announcement, coupled with Prime Minister Keir Starmerās expected push for a multinational defense initiative at the Munich Security Conference, provided a strong tailwind. Key players saw notable movement: * **Rolls-Royce** climbed **2.0%** * **BAE Systems** rose **1.3%** * **Babcock International** added **0.2%** Economic Indicators and Monetary Outlook The British economy remains in a low-growth phase, with fourth-quarter GDP expanding by just **0.1%**. This matches the pace of the previous quarter and reflects ongoing caution following recent budget adjustments. On the monetary front, the Bank of England recently held the base interest rate at **3.75%** in a narrow **5-4** vote. Chief Economist Huw Pill noted today that underlying inflation is settling at approximately **2.5%**, slightly above the **2.0%** target. Market participants are currently pricing in a **63.4%** probability of a rate cut later this year, though the timing remains sensitive to upcoming services and wage data. Commodity and Currency Pressure The mining sector weighed on the FTSE 100 as copper prices weakened. Major miners **Rio Tinto** and **Antofagasta** both saw declines of over **2%**. In currency markets, the British pound softened to **$1.3606** against the US dollar. While a weaker pound can boost the relative value of international earnings for the FTSE 100, it also signals a cautious outlook on UK growth compared to global peers.
Engineers India Q3 Net Profit Rises to Rs 302 Crore
State-owned Engineers India Ltd (EIL) has delivered a landmark financial performance for the third quarter ended December 31, 2025. The company reported a consolidated net profit of 347.17 crore, marking a 219.3% surge compared to the 108.73 crore earned in the same period last year. Standalone net profit saw an even sharper climb, jumping over 3-fold to 302 crore. This exceptional growth was primarily fueled by the mechanical completion of major turnkey projects and successful price adjustments. Revenue from operations grew 59% year-on-year to 1,194 crore. The turnkey segment was a standout performer, with its revenue doubling during the quarter. Meanwhile, the high-margin consultancy business remains a stable pillar, contributing 473.53 crore to the top line. The companyās order book has reached a record high of approximately 15,670 crore. This includes a massive $360 million contract from Nigeriaās Dangote Group for refinery expansionāthe largest overseas order in EILās history. International business now accounts for 65% of all new order inflows. Following these results, EIL shares surged nearly 16% on the National Stock Exchange today, hitting an intraday high of 209.71. The stock has gained 21% over the past week, supported by strong investor confidence and a consensus "Buy" rating from market analysts. The operational efficiency of the firm improved significantly, with EBITDA margins expanding to 29.10% from 12.80% a year ago. Operating profit, or EBITDA, skyrocketed 259% to reach 352 crore for the quarter. EIL is increasingly pivoting toward high-growth sectors such as green hydrogen, biofuels, and refinery upgrades. Management has signaled a revenue growth guidance of 15% to 20% for the full 2026 fiscal year, supported by a diverse project pipeline. Strategic investments also underscore long-term growth, including a 26% stake in the 6,388 crore Ramagundam fertilizer project and a minority stake in the Numaligarh Refinery. These moves position the Navratna PSU as a central player in Indiaās expanding energy and infrastructure landscape.
NAREDCO Proposes Incentives for Affordable and Rental Housing
The Indian real estate sector is witnessing a strategic push for policy overhaul as it enters February 2026. Industry body **NAREDCO** has formally urged the government to implement structural changes to sustain the **Housing for All** mission, citing a sharp decline in affordable housing's market share from **38%** in 2019 to approximately **18%** today. Redefining Affordability A primary demand centers on the price cap for affordable housing. The industry is calling for the current limit of **ā¹45 lakh** to be raised to **ā¹75ā80 lakh**. This shift reflects the reality of rising land and construction costs in Tier-1 cities, where the existing cap has rendered many projects unviable for developers. Tax Relief and Incentives To stimulate buyer demand, there is a strong recommendation to increase the home loan interest deduction limit under Section 24(b). The proposal seeks to raise this cap from **ā¹2 lakh** to **ā¹5 lakh**. Additionally, developers are pushing for **Industry Status**, which would allow access to cheaper institutional financing and lower overall project costs. The Rental Housing Pivot With rental yields in India currently stagnant between **1% and 3%**, private investment in rental stock remains low. NAREDCO and other bodies are advocating for a **National Rental Housing Mission**. This would include targeted tax incentives for developers and potential tax relief for tenants to formalize the segment and support urban workforce mobility. Market Performance and Projections The sector remains a massive economic pillar, projected to reach a market size of **$1 trillion by 2030**. * **Residential Growth:** Expected to expand by **8ā9%** in 2026. * **Price Trends:** Capital values are expected to climb by **3ā5%** this year. * **Government Outlay:** The Budget 2026-27 has significantly increased PMAY-Urban funding to **ā¹18,625 crore**, up from **ā¹7,500 crore** in the previous year. Emerging Trends While metro hubs like Bengaluru and Hyderabad continue to lead, **Tier-2 and Tier-3 cities** are gaining traction due to improved infrastructure. Furthermore, **NRI investment** is expected to contribute a record **18ā20%** of the total market share by the end of 2026, driven by a preference for stable, long-term asset appreciation.
US existing home sales reached a 25-month low in January
U.S. existing home sales experienced a significant contraction in January 2026, falling 8.4% to a seasonally adjusted annual rate of 3.91 million units. This represents the lowest sales pace in over two years and the sharpest monthly decline since early 2022. The retreat was widespread, with all four major U.S. regions posting monthly and annual decreases. The West saw the most dramatic drop at 10.3%, while the South declined by 9%. Market analysts point to a combination of severe winter weather and a persistent shortage of available properties as the primary drivers behind the slowdown. Despite the cooling in transaction volume, home prices continued their upward trajectory. The national median existing-home price reached $396,800 in January, marking a 0.9% increase from the previous year. This establishes a new record high for the month of January and represents the 31st consecutive month of year-over-year price gains. Inventory levels remain a critical constraint on the market. Total housing inventory stood at 1.22 million units at the end of January, a slight 0.8% decrease from December. While inventory is up 3.4% compared to one year ago, the current 3.7-month supply remains well below the 5 to 6 months typically required for a balanced market. Mortgage rates have offered some relief, with the 30-year fixed-rate average slipping to 6.09% in mid-February. This is a notable improvement from the 6.87% seen at the same time last year. Although rates are at three-year lows, the "lock-in effect" persists as many homeowners remain reluctant to trade in older, lower-rate mortgages for current market terms. Affordability metrics are showing early signs of recovery. The Housing Affordability Index rose to 116.5 in January, its highest level since early 2022. This improvement is largely driven by steady wage growth and the recent moderation in borrowing costs, though the lack of entry-level supply continues to challenge first-time buyers. First-time buyers accounted for 31% of all sales in January, down from the historical average of 40%. Meanwhile, all-cash sales remained high at 27% of transactions, and individual investors or second-home buyers made up 16% of the market. Distressed sales remained minimal, accounting for only 2% of total volume. The market outlook for the remainder of 2026 suggests a slow normalization. While sales have started the year on a sluggish note, the combination of rising incomes and stable mortgage rates is expected to gradually draw more participants into the market as the spring buying season approaches.
US Market Awaits Inflation Data with Index Futures Steady
Market Outlook: Friday, February 13, 2026 U.S. stock index futures remained subdued on Friday morning as Wall Street braced for critical inflation data. After a turbulent Thursday that wiped out year-to-date gains for the **S&P 500**, investors are showing extreme caution. The focus is squarely on the January Consumer Price Index (CPI) report. Analysts expect the annual inflation rate to ease to **2.5%**, down from **2.7%** in December. A reading in line with or lower than this figure could stabilize the market, while a "hotter" print would likely crush remaining hopes for a spring interest rate cut. Tech and AI Under Pressure The "AI scare trade" continues to dominate headlines. Sentiment has shifted from pure optimism to deep concern over disruption. Investors are now punishing companies they fear will lose out to rapidly advancing automated tools. * **Nasdaq 100** futures slipped **0.04%** following a **2%** plunge on Thursday. * **S&P 500** futures edged down **0.09%** to start the day. * **Dow Jones** futures fell **103 points**, or **0.21%**, signaling a defensive opening. Despite the broader gloom, **Applied Materials** jumped **11.5%** in premarket trading. The chipmaker provided a strong forecast, proving that hardware providers still benefit from the massive **$650 billion** in cumulative AI spending projected for the "Magnificent Seven" this year. Federal Reserve and Interest Rates Market expectations for a Federal Reserve pivot have been pushed back significantly. Following a robust jobs report earlier this week, the likelihood of a rate cut before June has dwindled. The Fed currently maintains a target range of **3.50% to 3.75%**. Most traders are now pricing in a **70%** chance of a cut in June, with a total of only **60 basis points** of easing expected for the entirety of 2026. Sector Highlights The selloff is rippling beyond software into logistics and financial services. Trucking and brokerage stocks have seen sharp declines as markets reassess how automation will impact traditional labor-heavy business models. Meanwhile, safe-haven demand has provided slight support to the **U.S. Dollar Index**, which rose to **97.07**. In the bond market, the **10-year Treasury yield** climbed to **4.12%** as investors weighed persistent economic strength against the threat of sticky inflation. The day's price action will likely be determined by the **8:30 a.m. ET** inflation release. Until then, trading remains thin and defensive.
Market Movers: Friday's Top Stocks Including TCS, SpiceJet, and Bajaj Finance
Market performance on Friday, February 13, 2026, was defined by intense selling pressure as benchmark indices tumbled over **1%**. The BSE Sensex crashed **1,048.16 points** to close at **82,626.76**, while the NSE Nifty 50 shed **336.10 points** to settle at **25,471.10**. Investors lost approximately **ā¹7 lakh crore** in a single session as market capitalization for BSE-listed firms dropped to **ā¹465 lakh crore**. IT Sector Under Siege The IT sector faced a brutal rout, with the Nifty IT index plunging **8%** over the weekāits steepest weekly decline since April 2025. **TCS** hit a fresh 52-week low, sliding **5.07%** to **ā¹2,610.60**. Its market valuation dropped below the **ā¹10 lakh crore** mark for the first time in years. **Wipro** followed suit, falling **4.70%** to a 52-week low of **ā¹219.00**, while **Coforge** plummeted **5.14%** to **ā¹1,348** amid high intraday volatility. Consumer and Metal Stress **Hindustan Unilever (HUL)** shares dropped **4.34%** to **ā¹2,351.40**. Despite a headline net profit surge to **ā¹6,603 crore** due to an ice cream business demerger, core profits from continuing operations actually fell **30%**, triggering a sharp selloff. **Hindalco** was among the top Nifty losers, tanking **6.08%** to **ā¹926.65**. The company reported a **45%** year-on-year drop in consolidated net profit, which stood at **ā¹2,049 crore**, largely due to fire-related disruptions at its Oswego plant. Aviation and Energy Volatility **SpiceJet** faced extreme distress, crashing over **15%** on the BSE to hit a new 52-week low of **ā¹18.93**. The airline has now accumulated losses of over **14%** in just three trading sessions. **Engineers India**, however, bucked the trend. The stock surged **11%** following a stellar Q3 report where net profit soared **219%** to **ā¹347.2 crore**, making it one of the most active counters by volume. Financial Resilience **Bajaj Finance** emerged as a rare bright spot, gaining **3.09%** to close at **ā¹1,010.30**. The stock has rallied **8%** in February, supported by strong Net Interest Income growth of **21%**, totaling **ā¹11,318 crore** for the quarter, which helped offset higher provisions. The India VIX, a measure of market fear, jumped over **13%**, signaling heightened anxiety as the Nifty breached key support levels at **25,500**.
Senco Gold Projects ā¹8,000 Crore FY Revenue Following Q3 Growth Driven by Gold Prices
Senco Gold & Diamonds has delivered a historic performance for the third quarter of FY26, reporting a 50% year-on-year surge in consolidated revenue to reach ā¹3,071 crore. This growth was primarily fueled by an exceptional 39% rise in same-store sales and a 689% jump in profit after tax, which climbed to ā¹264 crore. A primary driver of these figures is the unprecedented appreciation of gold prices, which rose roughly 65% over the past year. By the end of Q3, domestic gold rates hit record highs of approximately ā¹1,40,000 per 10 grams. While the price rally boosted the value of sales, it impacted consumption volumes, which saw a 3% decline during the quarter. To navigate this high-price environment, the company shifted its focus toward lightweight and budget-friendly jewelry designs. This strategic pivot, combined with a robust 36% growth in the diamond segment, helped sustain consumer interest during the peak wedding and festive seasons. Notably, the month of October alone saw record sales of ā¹1,716 crore, driven by strong Dhanteras demand. The company's expansion beyond its traditional Eastern India stronghold is showing significant results. Non-East revenue has now crossed the ā¹1,100 crore mark, underscoring a successful national footprint. The retail network has grown to 196 showrooms, with management on track to reach a 200-store milestone in the near future. Financially, the company remains in a strong position with a 13.2% EBITDA margin in Q3. For the first nine months of FY26, total revenue reached ā¹6,433 crore, a 30% increase over the previous year. To reward shareholders, the board has declared an interim dividend of ā¹0.75 per equity share. Looking ahead, management has maintained a confident outlook for the remainder of the fiscal year. The company is targeting an annual revenue of ā¹8,000 crore, supported by an expected 25% topline growth in the final quarter. Strategic moves, including the acquisition of a 68% stake in August Jewellery (Melorra), are expected to further bolster its digital and omni-channel presence. While overall gold demand in India is projected to be moderate due to price volatility, Sencoās focus on its "Hyper-local" strategy and a rising share of franchise revenueācurrently at 33%āprovides a stable foundation for its 18-20% long-term annual growth target.