Market Review - February 2026
Global markets remained cautious during February amid persistent geopolitical tensions in the Middle East, which continued to influence global risk sentiment.
March 13, 2026
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World Happenings
- Global markets remained cautious during February amid persistent geopolitical tensions in the Middle East, which continued to influence global risk sentiment.
- Investors remained focused on economic data from the United States and parts of Europe as markets assessed inflation trends and the future trajectory of interest rates.
- Technology stocks globally continued to face selling pressure due to concerns surrounding artificial intelligence regulation and elevated valuations across the sector.
- Commodity markets saw consolidation following January's strong rally. Gold and silver prices stabilised as investors booked profits, though precious metals continued to attract safe-haven demand amid ongoing global uncertainty.
- Currency movements and fluctuating commodity prices contributed to intermittent volatility across global financial markets.
Indian Market Overview
- Indian equity markets remained volatile through February as global cues and investor positioning continued to influence sentiment.
- The Nifty 50 traded largely within the 25,000–25,700 range during the month.
- The BSE Sensex moved broadly between 82,000 and 84,000 levels, reflecting cautious investor participation.
- Foreign Portfolio Investors (FPIs) returned as net buyers during the month after a period of sustained selling, providing support to benchmark indices.
- Sector performance remained mixed:
- Information Technology: Continued to remain under pressure due to global technology sector weakness.
- Banking and PSU stocks: Witnessed selective buying supported by expectations of domestic economic growth.
- Metals: Saw interest driven by infrastructure spending and industrial demand outlook.
- Consumer sector: Demand trends remained mixed amid evolving consumption patterns.
- The Indian rupee remained relatively weak against the US dollar during the month, contributing to cautious investor sentiment.
- Gold and silver prices in India mirrored global trends and stabilised following the strong rally witnessed earlier in the year.
Mutual Fund Trends
- The mutual fund industry continued to witness steady investor participation despite market volatility.
- Total industry Assets Under Management (AUM) increased to ₹82.02 lakh crore in February 2026, compared with ₹81.01 lakh crore in January 2026.
- Equity mutual funds recorded net inflows of ₹25,977.91 crore, indicating sustained investor interest in equities despite short-term market fluctuations.
- Hybrid mutual funds recorded net inflows of ₹11,983.37 crore, reflecting investor preference for balanced investment strategies combining equity and debt exposure.
- Multi-asset allocation funds attracted inflows of ₹8,476.26 crore, highlighting the growing investor focus on diversified portfolios across asset classes.
- Systematic Investment Plan (SIP) contributions stood at ₹29,845 crore, compared with ₹31,002 crore in January, largely due to fewer days in the month.
- SIP AUM rose to ₹16.64 lakh crore, reinforcing the growing adoption of disciplined, long-term investing among retail investors.
Takeaway
- February reflected continued market caution amid global uncertainties and sector-specific volatility.
- Despite short-term fluctuations in equity markets, mutual fund inflows and SIP participation remained resilient.
- Investors increasingly focused on diversification and balanced allocation strategies to navigate market volatility.
- Precious metals, hybrid funds, and diversified mutual fund portfolios continued to play an important role in portfolio risk management during uncertain market conditions.
Sources
Association of Mutual Funds in India – Monthly Mutual Fund Industry Data (February 2026)
National Stock Exchange of India – Nifty 50 Market Data
Bombay Stock Exchange – Sensex Market Data
Moneycontrol – Mutual Fund and Market Data
Reuters – Global Market Updates
National Stock Exchange of India – Nifty 50 Market Data
Bombay Stock Exchange – Sensex Market Data
Moneycontrol – Mutual Fund and Market Data
Reuters – Global Market Updates
Ria Jadav
March 13, 2026
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