Altifi Weekly Bulletin: February 2026 (Week 2)
Economy and regulatory updates
- India’s retail inflation rose to 2.75% in January compared with 1.33% in December 2025 on higher food and precious metal prices.
- Moody's Ratings said it expected India's GDP to grow 6.4% next fiscal, the fastest pace among G-20 economies, driven by strong domestic consumption, policy measures and a stable banking system.
- The government announced the launch of an offer for sale (OFS) in state-run Bharat Heavy Electricals Ltd to divest up to 3% equity stake, with an additional 2% available through a green-shoe option.
- The Ministry of Steel signed memoranda of understanding (MoUs) with 55 companies for 85 projects under the third round of the Production Linked Incentive (PLI) scheme for specialty steel.
- The Ministry of Defence has entered into an agreement with Hindustan Aeronautics Ltd to procure eight Dornier 228 aircraft, along with necessary operational equipment, for the Indian Coast Guard at a total cost of Rs 2,312 crore, under the 'Buy (Indian)' category.
- The government of Maharashtra signed MoUs worth over Rs 48,000 crore with different companies across sectors, including automobile and steel, for investments in the Vidarbha region of the state.
- The Gujarat government signed a letter of intent (LoI) with Elon Musk’s Starlink to provide satellite-based internet connectivity across remote and underserved parts of the state.
- Mozambique has launched a new digital e-visa system, allowing travellers from 183 countries, including India, to apply online.
- The Reserve Bank of India (RBI) proposed a revamp of the Kisan Credit Card (KCC) framework that could change how crop loans are assessed, sanctioned and used.
- The RBI issued draft amendment directions aimed at strengthening regulations governing the advertising, marketing and sale of financial products and services by regulated entities, including banks and non-banking financial companies (NBFCs).
Source: MOSPI, RBI
Indian debt market update
- The interbank call money rate ended higher at 5.05% on February 13, compared with 4.45% on February 6.
- Government bond prices ended higher this week with the yield on the 10-year benchmark 6.48% GS 2035 paper closing at 6.68% on February 13 compared with 6.74% on February 6.
- Bond prices were supported by strong demand at the state debt auction, which helped ease immediate supply concerns following the early-week selloff. Gains were further aided by softer US economic data that lifted expectations of Federal Reserve rate cuts, providing support to domestic bonds.
- Additionally, lower-than-expected January inflation triggered short-covering and reinforced expectations that inflation remains contained within the RBI’s target band.
- However, some losses were seen after the RBI refrained from announcing fresh liquidity support in its policy, amid concerns over absorption of record upcoming bond supply.
- Meanwhile, in the weekly debt sale held on February 13, the RBI auctioned new GS 2031 and 7.43% GS 2076 for a total notified amount of Rs 31,000 crore.
Source: CRISIL Fixed Income Database, RBI Weighted Average Yield ^Data as of 6th Feb 2026 vs 30th Jan 2026 vs 2nd Jan 2026 respectively
Source: CRISIL Fixed Income Database; *Weighted Average Yield
Indian equity market updates
- Indian equities ended lower this week, dragged down after robust US jobs data dampened expectations of near-term rate cuts and rising concerns over AI-led disruptions. However, a few gains were seen due to strength in healthcare and auto stocks. The BSE Sensex and Nifty 50 fell 1.14% and 0.87%, respectively.
- Most of the major sectors ended lower with information technology (IT), oil & gas and power losing the most. The BSE IT, BSE Oil & Gas and BSE Power fell 8.04%, 1.93% and 1.46%, respectively.
- The domestic market bought Rs 5,554 crore worth of equities on February 13, 2026, compared with selling of Rs 1,265 crore worth of equities on February 6, 2026.
- Foreign institutional investors bought equities worth Rs 108 crore on February 12, 2026, compared with buying of Rs 1,951 crore on February 6, 2026.
- Domestic mutual funds were net sellers, selling equities worth Rs 5,142 crore on February 9, 2026.
Source: BSE, NSE
Source: SEBI, NSE
Global Equity market summary
- US stocks declined (Dow Jones-1.32% and Nasdaq Composite-1.88%) during the week primarily due to declines in the transportation and technology sectors, as concerns about AI disruption weighed on investor sentiment. The strong non-farm payrolls data for January also sparked speculation that the Federal Reserve may adopt a more cautious approach to rate cuts, contributing to the decline.
- However, some gains were seen as investors rotated into defensive and value stocks.
- Britain’s FTSE index closed 0.32% higher largely fuelled by the surge in banking stocks following the Bank of England's hint at potential interest rate cuts if inflation continues to decline. The upward trend was further bolstered by increases in homebuilder, mining and energy stocks. However, some losses were recorded due to profit-taking amid a cautious global market sentiment.
- Asian equities closed higher this week. Japan's Nikkei ended 4.96% higher this week driven by strong earnings reports and optimism following Prime Minister Sanae Takaichi's election win. The market also welcomed expectations of pro-growth policies and continued economic stimulus, which boosted investor sentiment. However, a few losses were seen as the index was dragged down by profit booking following overnight losses on Wall Street.
- Hong Kong's Hang Seng Index ended 0.03% higher this week, driven by gains in financials and consumer stocks. A positive flow of funds, buoyed by Japan's election results, helped offset lingering concerns over the technology sector ahead of the Lunar New Year break. The Hang Seng Index was also dragged down by technology stocks, after China's market regulator summoned major online platforms over ticketing irregularities, adding to the sector's woes.
- China's Shanghai Composite Index closed 0.41% higher this week, boosted by gains in the communications sector. Furthermore, optimism over artificial intelligence (AI) provided additional support after Chinese Premier Li Qiang called for broader technological innovation and AI adoption. However, some negative momentum emerged as trading thinned ahead of the long Lunar New Year holiday.
Source: Websites of respective stock exchanges; *Data as on Feb 12
Global Yield
- US Treasuries initially traded in a tight range during the week as investors awaited key US jobs data for January.
- US Treasury prices rose later during the week after US retail sales data for December came in below market expectations. Fears of a possible partial US government shutdown also boosted the safe-haven appeal of US Treasuries.
- However, gains were capped after US jobs data for January came in better than expected. Market participants also exercised caution and remained on the sidelines as they awaited US retail inflation data for January.
- The yield on the 10-year benchmark Treasury bond end at 4.09% on February 12 compared with 4.22% on February 6.
Source: Financial Websites *As of Feb 12
Commodities and Currency
- Crude oil prices fell to $ 62.84 per barrels on the NYMEX on week on 12, February 2026 from $ 63.55 on 6, February 2026 due to heightened geopolitical tensions after the US advised vessels to steer clear of Iranian waters near the Strait of Hormuz, raising concerns over potential supply disruptions.
- Gold prices ended higher this week boosted by safe-haven demand followed by stronger-than-expected US jobs data.
- Silver prices ended lower this week, due to profit booking amid escalating geopolitical tensions.
- The rupee closed lower against the US dollar this week, pressured by persistent dollar demand from corporates and importers, geopolitical uncertainties and strong dollar index. However, brief gains were seen due to foreign fund inflows and RBI-led liquidity infusion.
*Data as on Feb 12, 2026 Source: Respective Commodity exchanges ibjarates.com
Source: Financial Websites
Global Economic
- US Retail Sales increased 2.4% in December 2025, compared to a 3.3% rise in November 2025.
- The US economy added 130,000 payrolls in January 2026, compared to a revised 48,000 rise in December 2025.
- US unemployment rate ticked down to 4.3% in January 2026 compared to 4.4% in December 2025.
- The UK economy expanded by 1.0% year-on-year in the fourth quarter of 2025, compared to downwardly revised 1.2% growth in the third quarter of 2025.
- UK Industrial Production increased 0.5% in December 2025 compared to 2.3% rise in November 2025 while manufacturing production rose by 0.5% from a downwardly revised 1.3% gain.
- The UK trade deficit narrowed to £4.34 billion in December 2025, down compared to a downwardly revised £5.56 billion in November 2025.
- China annual inflation eased sharply to 0.2% in January 2026 compared to 0.8% rise in December 2025.
- China producer prices dropped 1.4% year-on-year in January 2026, compared to a 1.9% fall in December 2025.
- Japan producer prices rose 2.3% year-on-year in January 2026, compared to a 2.4% increase in December 2025.
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