India Markets Strengthen as PSU Banks Lead Rally; Global Equities Rebound

India Markets Strengthen as PSU Banks Lead Rally; Global Equities Rebound

1. GLOBAL MARKET SUMMARY

• US Market Overnight: S&P 500, Nasdaq, Dow Jones closed with gains as global equities rebounded following last week’s selloff
• European Markets: FTSE, DAX, CAC 40 edged higher on Monday as tech jitters eased, with investors assessing earnings and deals
• Asian Markets: Regional markets showed mixed performance with focus on trade developments

2. KEY HEADLINES & EVENTS (Last 16-17 hours)

Government Announcements (India)

• US-India Trade Framework: Trade agreement expected to open doors for US auto imports while right-hand-drive rules limit options; US order on lowering India tariff to 18% expected this week, according to Commerce Minister Piyush Goyal
• EPFO UPI Integration: Employees’ Provident Fund Organisation to launch new app with UPI-based PF withdrawals by March-end

Company Results & Announcements (India)

Q3 Earnings Results:

• SBI (State Bank of India): Shares jumped 7% after reporting strong Q3 earnings with net profit rising 25% to ₹21,030 crore, beating estimates on higher fee income and lower provisions. Brokerages including Jefferies and Motilal Oswal raised price targets to ₹1,300
• Kalyan Jewellers: Shares surged 10% to ₹417.75 (upper circuit) after reporting a 90.36% jump in Q3 net profit to ₹416.29 crore. JM Financial set a ₹750 price target citing robust same-store sales growth
• Zydus Life Sciences: Shares gained up to 5% after Q3 revenue rose 30% to Rs 6,865 crore
• C K K Retail Mart: Listed on February 6, 2026, at issue price of ₹163, currently trading at ₹179.70 (10.25% gain)

Board Meetings & Corporate Actions:

• Religare Broking: Appointed Vijay Kumar Goel as Managing Director as the broking firm focuses on scaling its core broking business and expanding wealth product distribution offerings
• IDBI Bank: Shares fell 4% amid updates on strategic disinvestment, with Kotak Mahindra Bank staying away from stake sale; Fairfax Financial and Emirates NBD emerging as bidders. Government and LIC plan to sell combined 60.7% stake in lender as part of privatisation programme
• NCLT Merger Approval: NCLT approved merger scheme of Adani Group’s Ambuja Cements and Sanghi Industries

Market Structure & Institutional Activity:

• MFs vs FIIs: Domestic mutual funds continued gaining ground over FIIs in December 2025, narrowing the ownership gap to 5.50%. Record MF inflows, persistent SIP investments and declining foreign holdings signal structural shift toward domestic institutional dominance
• DII Holdings: Domestic institutional investors emerged as dominant force in Nifty50, with holdings rising to 24.8% as of December 2025 - an all-time high. FIIs reduced exposure amid Rs 1.6 lakh crore sales, while promoter stakes fell to record low
• Groww Market Share: India’s active demat accounts grew modestly in January 2026 with total accounts rising by about 3.02 lakh to 45.11 million. Groww led account additions with 3.53 lakh new clients, boosting market share to 27.66%
• Promoter Pledges: 9 Nifty500 stocks showed rising promoter pledges in Q3FY26, which can indicate financial stress or need for liquidity

Sector & Stock-Specific Movements:

• PSU Banks: SBI, Bank of India among other PSU bank shares rose up to 8% amid strong buying; PSU Bank index surged 3.34% during session
• Defence & Manufacturing: HAL, Azad Engineering gained up to 5% on US-India trade framework
• Gems & Jewelry: Goldiam and other stocks rallied up to 17% as trade framework indicates US to remove reciprocal tariff on gems and diamond exports
• Smallcaps with FII Interest: 9 low-debt smallcap stocks with rising FII ownership rallied up to 165% in FY26, with 2 turning multibaggers

Global News & Events

• European Markets: European shares edged higher on Monday tracking a rebound in global equities following a selloff last week, with investors assessing earnings from Italian lender UniCredit and developments on deals front
• Commodity Markets:
  • Gold: April gold futures trading around Rs 1,57,490 on MCX, down 18% from peak of Rs 1,93,096. On COMEX, gold rate hovered around $5,049.30 an ounce, gaining $70 or 1.40% intraday
  • Central Bank Gold Buying: Central banks’ gold buying fell 21% in 2025, slipping under 1,000 tonnes
  • Gold/Silver ETFs: Gold and silver ETFs surged up to 9% as precious metals extended rebound
• US Economic Data: US jobs data in focus this week as policy reset fuels commodity volatility

3. WHAT TO WATCH TODAY

Scheduled Corporate Events (Board Meetings & Results):

• Automobile Products Ltd: Quarterly Results & Rights issue (Board Meeting)
• Samkrg Pistons: Quarterly Results (Board Meeting)
• Sintercom India: Quarterly Results (Board Meeting)
• Suprajit Engineering: Quarterly Results & Interim Dividend (Board Meeting)
• Happy Forgings: Quarterly Results (Board Meeting)
• Prime Industries: EGM
• Zeal Aqua: POM
• Sun Pharma Advanced: EGM
• Kotia Enterprises: EGM
• IIFL Finance: POM

Open IPOs:

• Aye Finance Ltd: Mainline IPO, Issue Price ₹129, Issue Size ₹1,010.00 Cr, Lot Size 116 shares, Open Date: 09 Feb 26, Close Date: 11 Feb 26
• Biopol Chemicals: SME IPO, Issue Price ₹108, Issue Size ₹31.26 Cr, Lot Size 1200 shares, Open Date: 06 Feb 26, Close Date: 10 Feb 26
• Fractal Analytics Ltd: Mainline IPO, Issue Price ₹900, Issue Size ₹2,833.90 Cr, Lot Size 16 shares, Open Date: 09 Feb 26, Close Date: 11 Feb 26
• PAN HR Solution Ltd: SME IPO, Issue Price ₹78, Issue Size ₹17.04 Cr, Lot Size 1600 shares, Open Date: 06 Feb 26, Close Date: 10 Feb 26

Upcoming IPOs:

• Marushika Technology Ltd: SME IPO, Issue Price ₹117, Issue Size ₹53.94 Cr, Lot Size 1200 shares, Open Date: 12 Feb 26, Close Date: 16 Feb 26

Corporate Actions (Upcoming):

• Bonus:

  • DELPHI WORLD: 2:1 bonus, Ex-Bonus Date: 13-02-2026
  • Axita Cotton: 1:10 bonus, Ex-Bonus Date: 13-02-2026
  • Bazel International: 1:1 bonus, Ex-Bonus Date: 18-02-2026

• Splits:

  • DELPHI WORLD: Split from 10 to 2, Ex-Split Date: 13-02-2026
  • QNIFTY: Split from 10 to 1, Ex-Split Date: 13-02-2026
  • Titan Biotech: Split from 10 to 2, Ex-Split Date: 20-02-2026

• Dividend:

  • Aarti Drugs: 20% dividend, Ex-Div Date: 09-02-2026
  • Prithvi Exchange: 15% dividend, Ex-Div Date: 09-02-2026
  • Bharat Dynamics: 90% dividend, Ex-Div Date: 09-02-2026
  • Power Grid Corp: 32.5% dividend, Ex-Div Date: 09-02-2026
  • Container Corp: 68% dividend, Ex-Div Date: 09-02-2026

Expected Economic Data:

• US Jobs Data: In focus this week as policy reset fuels commodity volatility
• US Tariff Decision: US order on lowering India tariff to 18% expected this week

4. SUMMARY

Indian markets extended gains for a second consecutive session with Sensex adding 485 points and Nifty closing above 25,850, led by PSU banks (up 3.34%), metals, and pharma stocks. Smallcap index surged 2.65%. The positive sentiment was driven by the US-India trade framework, with defence stocks like HAL and Azad Engineering gaining up to 5%, and gems/jewelry stocks like Goldiam rallying up to 17% on news of US reciprocal tariff removal. On the earnings front, SBI and Kalyan Jewellers delivered strong Q3 results with SBI’s net profit rising 25% to ₹21,030 crore and Kalyan Jewellers’ profit jumping 90.36%, both triggering bullish brokerage calls. Institutional ownership patterns continued to shift toward domestic investors, with DII holdings in Nifty50 reaching a record high of 24.8% while MF-FII ownership gap narrowed to 5.50%. In corporate developments, Religare Broking appointed a new Managing Director, IDBI Bank’s stake sale process advanced with Fairfax and Emirates NBD in the fray (Kotak opted out), and NCLT approved Adani Group’s Ambuja Cements-Sanghi Industries merger. Globally, European markets rebounded from last week’s selloff as tech jitters eased, while gold recovered intraday on COMEX despite being down 18% from peak on MCX. Key events to watch include multiple Q3 results announcements, four open IPOs including Fractal Analytics, upcoming corporate actions (bonus, splits, dividends), and US jobs data later in the week.

Details for information purposes only. Don’t treat this as financial advice.