**India Market Brief: February 2026** India continues to cement its position as a pillar of global economic stability. Amid international fragmentation, the nation’s commitment to fiscal discipline and open-market policies is successfully attracting a broad base of global partners and institutional capital. **Macroeconomic Indicators** The Reserve Bank of India has maintained the policy repo rate at 5.25% as of February 2026. This decision follows a neutral stance designed to balance strong growth with benign inflation. Real GDP growth for the 2025-26 fiscal year is estimated at a robust 7.4%. Inflation remains well-managed, with headline CPI projected at 2.1% for the current fiscal year. Fiscal consolidation is also a high priority, with the government setting a deficit target of 4.3% for the 2026-27 period, down from 4.4% in the previous year. **Equity Market Performance** Domestic stock markets are reflecting this stability through consistent gains. As of February 18, 2026, the BSE Sensex settled at 83,734.25, while the NSE Nifty 50 closed at 25,819.35. Market sentiment is buoyed by steady asset quality in the banking sector and a late-session surge in metal and FMCG shares. While the IT sector has seen some volatility due to global margin pressures, the broader market indices—including midcap and smallcap—have outperformed, rising 0.5% in recent sessions. **Sectoral Drivers: Real Estate and Power** Private investment is seeing a significant revival, particularly in infrastructure and housing. The real estate sector is transitioning toward sustainable and premium assets. Notably, warehousing has emerged as a high-conviction asset class, often outperforming traditional office spaces due to the expansion of e-commerce and logistics networks. The power sector is another critical growth engine. India’s installed capacity reached 505 GW by late 2025. There is an estimated investment opportunity of 40 lakh crore over the next decade. Renewable energy is leading this charge, with a record 20.1 GW of capacity added in the first half of the current fiscal year. **Investment Outlook** A strong domestic demand base and increased capital expenditure are fueling a durable growth runway. Foreign institutional investors remain active, recently purchasing equities worth over 995 crore in a single day. Government focus on ease of doing business and infrastructure creation, supported by a budgeted capital outlay of 12.22 lakh crore for the coming year, provides a clear roadmap for long-term investors. India’s transition toward a debt-to-GDP ratio of 55.6% further reinforces its reputation for macroeconomic prudence.