Altifi Weekly Bulletin: February 2026 (Week 4)
Economy and regulatory updates
- India’s real gross domestic product expanded 7.8% in the third quarter of fiscal 2026, compared with the upwardly revised 8.4% in the second quarter.
- India’s eight core infrastructure sectors grew 4% in January 2026, compared with a revised 4.7% growth in December 2025.
- India HSBC Flash Manufacturing PMI rose to 57.5 in February from 55.4 in January, while the HSBC Flash Services PMI edged down to 58.4 from 58.5 and the HSBC Flash Composite PMI increased to 59.3 from 58.4.
- The Union Cabinet approved a proposal to increase the equity investment threshold of public sector enterprise Powergrid from Rs 5,000 crore to Rs 7,500 crore per subsidiary to enable it to bid for capital-intensive transmission projects.
- The Union Cabinet approved a hike in the Minimum Support Price (MSP) of raw jute by Rs 275 to Rs 5,925 per quintal for the marketing season 2026-27.
- The Cabinet Committee on Economic Affairs approved the development of the civil enclave at the Srinagar airport for an estimated cost of Rs 1,677 crore.
- The Reserve Bank of India (RBI) announced the premature redemption schedule for five Sovereign Gold Bond tranches that have completed the mandatory five-year lock-in period and will become eligible for early redemption in April.
- The RBI built a high-security data centre in Odisha, strategically located well away from potential cross-border threat zones and high seismic-risk regions, as part of efforts to safeguard critical financial infrastructure and strengthen continuity of core systems.
- The RBI said the Government of India plans to conduct a Rs 25,000 crore switch auction of dated securities to smoothen its redemption profile and ease near-term repayment pressures.
- Sebi revised valuation norms for physical gold and silver held by
- mutual funds, mandating use of domestic polled spot prices from recognised exchanges instead of London benchmarks.
Source: MOSPI, RBI
Indian debt market update
- The interbank call money rate ended higher at 5.12% on February 27 compared to 5.00% on February 20.
- Government bond prices ended marginally higher this week ended February 27 and the yield on the 10-year benchmark 6.48% GS 2035 paper closed at 6.66% on February 27 compared to 6.72% on February 20.
- Bond prices began the week on positive note due to easing geopolitical concerns between US-Iran and softer crude oil prices ahead of heavy state and central bond supply. It rose further due to strong state debt demand, surplus liquidity and expectations of lower long-duration issuance FY27.
- At the end of the week gains were witnessed as surplus banking system liquidity supported demand despite concerns over record borrowing next fiscal year.
- In the weekly debt sale held on February 27, the RBI auctioned 6.48% Government Security 2035 for a total notified amount of Rs 32,000 crore.
Source: CRISIL Fixed Income Database, RBI *Weighted Average Yield ^Data as of 20th Feb 2026 vs 13th Feb 2026 vs 16th Jan 2026 respectively
Source: CRISIL Fixed Income Database; *Weighted Average Yield
Indian equity market updates
- Indian equity ended lower this week, pressured by profit booking, global uncertainty and rising geopolitical concerns. However, mid-week recovery driven by improved global cues, including easing artificial intelligence (AI) concerns, helped limit losses. The BSE Sensex and Nifty 50 fell 1.84% and 1.54%, respectively.
- Most of the major sectors ended lower, with realty, information technology (IT) and fast-moving consumer goods (FMCG) losing the most. BSE Realty, BSE IT and BSE FMCG fell 4.86%, 4.18% and 1.36%, respectively.
- The domestic market bought around Rs 12,293 crore worth of equities on February 27, 2026 compared with buying of Rs 2,480 crore worth of equities on February 20, 2026.
- Foreign institutional investors sold equities worth Rs 3,466 crore on February 26 compared with selling of Rs 948 crore on February 20.
- Domestic mutual funds were net sellers, selling equities worth Rs 5,120 crore on month to date basis on February 25, 2026.
Source: BSE, NSE
Source: SEBI, NSE
Global Equity market summary
- US stocks declined during the week, primarily due to volatility in the technology sector, fuelled by concerns about AI and disappointing earnings.
- Ongoing uncertainty following the US Supreme Court’s decision on tariffs also prompted investors to move away from riskier assets, contributing to a further decline.
- Britain's FTSE index ended higher during the week, driven by relief over US trade policy, optimism about United Kingdom (UK) monetary policy and the US Supreme Court’s rejection of tariffs proposed by the US President.
- Asian equities closed higher this week. Japan's Nikkei index ended higher due to easing AI concerns, a weaker yen and hopes of increased investment in AI infrastructure.
- Optimism over a potential Nvidia-OpenAI deal, government economic support measures, and reduced speculation of a Bank of Japan rate hike also contributed to the index's gains.
- Hong Kong's Hang Seng Index ended higher this week, buoyed by optimism over potential US tariff adjustments following a US Supreme Court ruling.
- Additionally, concerns over AI disruption eased, supporting the index. However, gains were tempered by a decline in technology stocks, which were impacted by muted enthusiasm for AI.
- China's Shanghai Composite Index closed higher this week as traders returned from holiday and bet on a US tariffs reset benefiting China's economy, with tech and metal shares gaining.
- However, momentum slowed ahead of an annual parliamentary meeting, which is scheduled for the first week of March.
Source: Websites of respective stock exchanges; *Data as on Feb 26
Global Yield
- US treasury prices rose during the week, buoyed by safe haven demand amid geopolitical concerns and market anxiety.
- Despite persistent inflation above the US Federal Reserve’s (Fed) 2% target, markets priced in slower growth and delayed Fed rate cuts, pushing treasury prices up.
- However, optimism at the Fed decision-making level and strong global earnings narratives limited further gains in treasury yield prices.
- The yield on the 10-year benchmark treasury bond ended at 4.02% on February 26, compared with 4.08% on February 20.
Source: Financial Websites *As of Feb 26
Commodities and Currency
- Crude oil prices fell to $65.21 per barrels on the NYMEX on week on 26, February 2026 from $66.48 on 20, February 2026 as easing tensions over a nuclear deal reduced concerns about potential supply disruptions.
- Gold prices rose to Rs 1,59,097 per 10 grams in week on 27, February 2026 from Rs 1,544,38 per 10 grams in week on 20, February 2026 boosted by safe haven demand amid increasing geopolitical uncertainties.
- Silver prices rose to Rs 2,66,700 per kg on week on 27, February 2026 from Rs 2,50,314 per kg on week on 20, February 2026 mirroring the trend in gold amid rising geopolitical concerns and mixed global cues.
- The rupee closed flat against the US dollar this week, as weakness due to softer domestic equities and strong US dollar demand in the non-deliverable forwards market was offset by a dip in crude oil prices and the US Supreme Court’s decision on tariffs.
*Data as on Feb 26, 2026 Source: Respective commodity exchanges, ibjarates.com
Source: Financial websites
Global Economic
- US PCE price index saw a year-over-year increase of 2.9% in December 2025, compared from November 2025 2.0% growth rate.
- Eurozone annual inflation rate eased to 1.7% in January 2026, compared to 2.0% recorded in December 2025 while the annual core inflation rate slowed to 2.2% from 2.3%.
- The People’s Bank of China (PBoC) left its benchmark lending rates unchanged for a ninth consecutive month in February, signaling policymakers are not rushing to introduce broad monetary easing after recent targeted measures. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, the benchmark for mortgage rates, remained at 3.5%.
- Japan industrial production increased 2.3% on year in January of 2026 compared to 2.6% in previous month.
Geopolitical Update
- Escalating tensions among Iran, Israel, and the United States have triggered a sharp uptick in global commodity prices, particularly crude oil, amid heightened concerns over potential supply disruptions through the Strait of Hormuz, a critical chokepoint for global energy trade.
- The intensifying geopolitical uncertainty has reinforced a risk-off sentiment across global markets, driving flows toward safe-haven assets such as precious metals, sovereign bonds, and the US dollar, while exerting downward pressure on equity markets.
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