Economy And Regulatory Updates
S&P Global raised India’s growth forecast for fiscal 2027 by 40 basis points to 7.1%, while cautioning that the pace of expansion is likely to moderate from the current fiscal.
The Organisation for Economic Co-operation and Development lowered India’s fiscal 2027 growth forecast to 6.1% from 6.2%, citing global uncertainties.
The HSBC India Manufacturing PMI fell to 53.8 in March from 56.9 in February, while the HSBC Flash Composite PMI edged down to 56.5 from 58.9 and Services PMI dropped to 57.2 from 58.1.
India’s infrastructure output grew 2.3% on-year in February, marking a slowdown from the revised 4.7% growth recorded in January.
The Reserve Bank of India (RBI), in its monthly report, said that India's foreign exchange reserves were adequate to cushion against external shocks, adding that proactive measures will be needed to limit spillovers from the ongoing global volatility.
Finance Minister Nirmala Sitharaman announced the launch of the SWAMIH Fund II worth Rs 15,000 crore to resume stalled housing projects.
The government rolled out a Rs 20,000 crore credit guarantee scheme for microfinance institutions, offering the much-needed support to players facing funding and liquidity pressures.
The government announced a 15-day fee waiver at Mundra port for export containers bound for the Middle East as part of measures to ease logistics and support exporters amid the ongoing conflict.
The government said that no centralised data is maintained on incidents of "hate speech, racial slurs, harassment and discrimination" against people from the northeast, while stressing that policing and public order fall under the domain of states.
The Central Board of Directors of the RBI assessed the emerging global and domestic economic scenario, including the evolving geopolitical developments and their impact on financial markets, along with associated challenges.
The Securities and Exchange Board of India (SEBI) proposed introducing gift cards or gift prepaid payment instruments for investments in mutual funds to improve financial inclusion by onboarding new investors in the space.
SEBI has eased settlement regulations for foreign investors by permitting net trade settlement to reduce transaction costs in response to significant capital outflows.
Source: MOSPI, RBI
Indian Debt Market Update
The interbank call money rate closed at 5.50% on March 27 compared with 5.35% on March 20.
Government bond prices declined in the week ended March 27 and the yield on the 10-year benchmark 6.48% GS 2035 closed at 6.94% on March 27 compared with 6.74% on March 20.
Bond prices declined mainly due to a sharp rally in the US Treasury yield amid surging global crude oil prices. A further fall was reported after the government cut the fuel excise duty. The decision raised concerns over increased fiscal deficit and debt supply, which exerted pressure on bond prices.
Source: CRISIL Fixed Income Database. RBI *Weighted Average Yield ^Data as of 20th Mar 2026 vs 13th Mar 2026 vs 20th Feb 2026 respectively
Source: CRISIL Fixed Income Database; *Weighted Average Yield
Indian Equity Market Updates
Indian equity closed lower in the holiday-shortened week due to rising bond yields, continued foreign fund outflows and a depreciating rupee. Geopolitical uncertainties also added pressure. However, a few gains were seen owing to a decline in global crude oil prices. The BSE Sensex and Nifty fell 1.27% and 1.28%, respectively.
The major sectors closed lower with realty, capital goods (CG) and metal incurring the maximum losses. BSE Realty, BSE CG and BSE Metal fell 3.95%, 2.44% and 2.31%, respectively.
The domestic market bought around Rs 3,566 crore worth of equities on March 27 compared with buying of Rs 5,706 crore worth of equities on March 20, 2026.
Foreign institutional investors sold equities worth Rs 1,805 crore on March 25, 2026 compared to selling of Rs 5,518 crore on March 20.
Domestic mutual funds were net buyers, buying equities worth Rs 75,461 crore on month to date basis on March 20, 2026.
Source:
BSE, NSE
Source: SEBI, NSE
Global Equity Market Summary
US stocks finished the week mixed, with the Dow outperforming and the Nasdaq trailing. Early gains were driven by lower oil prices and diplomatic hopes, but market volatility rose amid the news of troop movements and uncertainty.
By the end of the week, rising oil and geopolitical conflicts renewed inflation and rate concerns, causing declines.
Britain's FTSE Index closed the week higher but choppy, shaken by Middle East conflict, oil-price volatility and UK inflation worries. Spiking crude revived fears of persistent inflation and strengthened expectations of the Bank of England rate hikes, pressuring stocks.
Sentiment improved after Washington paused planned strikes, while energy gains helped offset ceasefire uncertainty.
Asian equities closed mixed during the week. Japan's Nikkei closed higher amid hopes of easing uncertainties in the Middle East. However, losses were limited due to inflation and global growth concerns.
Hong Kong's Hang Seng Index closed lower amid Middle East uncertainties and concerns about global economic growth. However, some gains were seen after the potential deescalation.
China's Shanghai Composite Index closed lower due to the Middle East conflict and stagflation fears. However, it saw some gains after the US postponed its threat to strike Iran, boosting hopes of a de-escalation.
Source: Websites of respective stock exchanges' *Data as on Mar 26
Global Yield
US Treasury prices fell during the week amid inflationary pressures and geopolitical uncertainties.
Bond prices fell as elevated energy prices reinforced expectations that inflation could remain sticky, delaying potential rate cuts by the US Federal Reserve.
However, yields briefly eased on temporary de-escalation headlines, but quickly rebounded as uncertainty persisted.
The yield on the 10-year benchmark Treasury bond closed at 4.42% on March 26 compared with 4.39% on March 20.
Source: Financial Websites *Data as on Mar 26 ^Data as on Mar 19
Commodities and Currency
Crude oil prices fell to $94.48 per barrel on the NYMEX on week on 26, March 2026 from $98.84 on 20, March 2026 as hopes of diplomatic progress tempered supply-disruption concerns.
Gold prices fell to Rs 1,42,942 per 10 grams in week on 27, March 2026 from Rs 1,47,218 per 10 grams in week on 20, March 2026 dragged down due to strong US dollar index.
Silver prices fell to Rs 2,21,647 per kg on week on 27, March 2026 from Rs 2,32,364 per kg on week on 20, March 2026 mirroring the similar trend in gold due to strong dollar index.
The rupee closed lower against the US dollar in the week ended March 27, pressured by the Middle East conflict, rising energy-supply risks and sustained foreign fund outflows. Additional weakness came from maturing Non-Deliverable Forwards (NDF)-related dollar demand.
*Data as on Mar 26, 2026 Source: Respective commodity exchanges, ibijarates.com
Source: Financial websites
Global Economic
US S&P Global Flash Manufacturing PMI rose to 52.4 in March 2026 compared to 51.6 in February 2026 while the S&P Global Flash Services PMI fell to 51.1 from 51.7 and the S&P Global Flash Composite PMI declined to 51.4 from 51.9.
Eurozone S&P Global Flash Manufacturing PMI rose to 51.4 in March 2026 compared to 50.8 in February 2026 while the S&P Global Flash Services PMI fell to 50.1 from 51.9 and the S&P Global Flash Composite PMI declined to 50.5 from 51.9.
UK S&P Global Flash Manufacturing PMI eased to 51.4 in March 2026 compared to 51.7 in February 2026 while the S&P Global Flash Services PMI fell to 51.2 from 53.9 and the S&P Global Flash Composite PMI fell to 51.0 from 53.7.
UK annual inflation rate steadied at 3% in February 2026, the same as in January 2026 while the annual core inflation rate rose to 3.2% compared to 3.1%.
UK Retail Price Index rose to 3.6% year-on-year in February 2026 compared to 3.8% rise in January 2026.
Japan’s annual inflation eased to 1.3% in February 2026 from 1.5% in the prior month, the lowest since March 2022 while core consumer price index eased to 1.6% from 2%.
Japan S&P Global flash Manufacturing PMI fell to 51.4 in March 2026 from a near four-year high of 53.0 in the previous month while flash services PMI confirmed at 52.8 vs 53.8 and composite PMI came in at 52.50 compared to 53.90.
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