Market Medley

  India's ambition to become a premier global financial centre is rapidly turning into reality with the evolution of the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). Designed as India's gateway to global financial markets, the IFSC at GIFT City is fast becoming a preferred jurisdiction for international financial operations, blending global best practices with India's economic strengths .

The Reserve Bank of India has issued a new circular (RBI/2026-27/14, dated April 20, 2026), superseding its earlier directive of April 1, 2026. The previous communication stands withdrawn with immediate effect.

  Fund category Equity allocation Rewards Risks Selection Equity Savings 30–40% Moderate risk, defensive, smoother NAV; Lower equity component limits long‑term growth; not suitable when strategy is to increase equity exposure . Not Selected: Equity exposure is only ~30–40%, so it won’t meaningfully participate in equity upside

  Executive Summary:  The data clearly supports  moving from a ‘conservative’ to a ‘moderately aggressive’ stance . While the absolute bottom may not be in, the risk-reward ratio has turned favorably for long-term, disciplined investors. The combination of fair valuations, extreme pessimism (VIX), and robust structural flows (DIIs/SIPs) creates a classic "wall of worry" setup.

  As expected, the Reserve Bank of India (RBI) has retained its dovish stance on liquidity. By stating it “will continue to be proactive in liquidity management,” the central bank signaled a soft policy approach rather than a hard one. Currently, liquidity is so abundant that overnight rates are trading well below the repo rate. Interestingly, the RBI also expressed concern that commercial paper (CP) and certificate of deposit (CD) rates remain elevated, highlighting pockets of tightness even amid surplus liquidity.

  The Chairman of the Securities and Exchange Board of India (SEBI) – Mr. Tuhin Kanta Pandey, at the IVCA Conclave 2026 held last week, outlined SEBI’s evolving agenda for India’s Alternative Investment Fund (AIF) ecosystem. The address highlighted both the rapid growth of the AIF industry and SEBI’s approach to strengthening governance while facilitating ease of doing business.