India’s smallcap index has recovered above pre-war levels following the US-Israel-Iran conflict, while the Nifty and midcaps still trade below their late-February peaks, highlighting a sharp market divergence. The smallcap gauge has surged 2.3% to 16,051.40, supported by strong domestic participation. The trend reflects shifting equity ownership patterns, though questions remain on whether the rally can sustain or broaden further.
Saurabh Mukherjea, founder of Marcellus Investment Managers, has shifted his personal portfolio to a 50-50 split between Indian and global investments, reflecting a strategic pivot. The firm is reducing domestic consumption exposure and increasing bets on export-oriented businesses, while also building a position in companies set to benefit from rising NPAs in the Indian banking system.
Four companies—Wipro, Cyient, Windlas Biotech, and Aurobindo Pharma—are set to announce or act on share buybacks this month, with Aurobindo’s record date due soon. Buybacks involve companies repurchasing shares to boost value, use surplus cash, or strengthen ownership. Meanwhile, new rules under the Finance Bill 2026 impose a 12% surcharge on buyback-related capital gains for promoters, while other investors remain taxed as per existing norms.
As of March 2026, data shows that 259 stocks were held by more than 100 mutual fund schemes, highlighting broad-based institutional interest. ETMarkets’ analysis reveals that 50 of these stocks have delivered gains of more than 10% since the start of CY26.
Ace investor Mukul Mahavir Agrawal increased his stake in Jammu & Kashmir Bank during the January–March quarter, adding around 25 lakh shares. The lender has seen strong stock gains this year alongside steady operational improvement, supported by rising profitability, improving asset quality and sustained growth in advances and deposits.
Nifty has rebounded 8% in April after a sharp March correction but remains below pre-war levels, signalling cautious recovery. The bounce is driven by short covering and selective buying, while persistent FII outflows, elevated crude prices and geopolitical risks continue to weigh on sentiment despite improving valuations.
Securities and Exchange Board of India has eased norms allowing firms to reduce IPO sizes amid weak market sentiment triggered by the Iran conflict, giving issuers flexibility to navigate volatility and investor caution.
Indian banks are expected to report a steady profit rise in the January-March quarter, four brokers said, aided by credit growth and liquidity buffers, while higher bond yields and forex arbitrage curbs weighed on treasury income.
Markets may be rallying on hopes of peace, but Viking Research’s John Rossomando warns that investors are underestimating geopolitical risks. He cautions that any aggressive move by Iran, such as renewed missile strikes or attacks on shipping, could quickly reverse market optimism and disrupt global trade.
MTAR Technologies shares surged over 10%, extending a sharp rally that has doubled investor wealth in 2026 so far. The spike follows a major Bloom Energy–Oracle deal, strengthening growth visibility. Strong Q3 earnings, rising AI-driven power demand, and its key role in clean energy supply chains further boosted investor sentiment.
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