President's Message
National President’s Message – February 2026
Dear Members,
Greetings from ANMI!
February 2026 marks a decisive
inflection in India’s economic narrative. Growth remains robust, inflation is
contained, fiscal consolidation is progressing, and domestic capital continues
to anchor market stability. In an environment where global uncertainties
persist, India’s macroeconomic discipline and institutional credibility are
reinforcing investor confidence. The evolving balance between policy, markets,
and technology is shaping a more resilient and internally driven capital market
ecosystem.
The Union Budget 2026–27
reinforces fiscal discipline alongside growth. After achieving a fiscal deficit
of 4.4% of GDP in FY26 despite revenue pressures, the government has set a 4.3%
target for FY27. Capital expenditure remains strong at ₹12.2 lakh crore, while
overall expenditure growth is contained at 7.7%. Gross market borrowings are
budgeted at ₹17.2 lakh crore, leading to a brief hardening in yields. The
direction is clear—consolidation without compromising productive investment.
Global conditions remain fluid.
The IMF projects global growth at 3.3% in 2026, though geopolitical tensions,
tariff risks, and technology-cycle volatility remain watchpoints. Domestically,
inflation under the new CPI series stood at 2.75% in January, enabling the RBI
to maintain the repo rate at 5.25% with a neutral stance. While the rupee
experienced some depreciation amid global volatility, India’s forex reserves of
US$724 billion provide a strong external buffer.
High-frequency indicators remain
broadly constructive. Industrial production expanded 7.8% year-on-year, bank
credit grew 14.6%, and GST collections have averaged ₹1.9 lakh crore in FY26.
Rural demand remains firm, and investment activity continues to support growth
momentum.
Market trends highlight a
structural rebalancing in ownership. Foreign portfolio investor ownership in
NSE-listed companies has declined to 16.7%, a 15.5-year low. In contrast,
domestic mutual fund ownership has risen to 11.1%, marking the tenth consecutive
quarterly high. Combined household participation—direct and indirect—now stands
at 18.6%, reflecting sustained financial inclusion of savings and growing
domestic resilience. While primary market fundraising moderated in January,
secondary market activity strengthened, with equity cash turnover reaching a
16-month high. Investor additions remain robust, with 17.7 lakh new investors
added during the month, taking the total registered base to 12.7 crore.
This month’s Insights section
revisits fiscal policy thinking over eight decades—marking 90 years since
Keynes and 250 years since Adam Smith. The evolution of theory and evidence
underscores that fiscal effectiveness depends on credibility, quality of expenditure,
and macroeconomic context. Fiscal policy is most effective when anchored in
discipline and institutional clarity.
February has also been an active
month for ANMI’s advocacy and knowledge initiatives.
I appeared on TV media through
various business news channels and shared ANMI’s views on the STT hikes
proposed in the budget and its implications for intermediaries and market
efficiency.
29th January 2026, Mr. Kamlesh
Shroff, Alternate President, ANMI and other ANMI Members participated in ThePrint
Off the Cuff hosted by ThePrint, contributing to broader policy dialogue.
7th February 2026, Mr. Kamlesh
Shroff, Mr. Mahesh Desai, Director (NC), ANMI, and Mr. Arjun Shah, Chairman
(WR), ANMI, along with esteemed members, attended the CDSL Reimagine
Ideathon organised by Central Depository Services Limited at Taj Lands End,
Mumbai—reflecting the industry’s commitment to innovation and digital
evolution.
9th February 2026, I shared ANMI’s
its views during #AwaazMarket | Brokers’ Appeal to the finance minister,
highlighting practical concerns and constructive suggestions from the broking
community on budget proposals.
16th February 2026, ANMI WIRC
organised a webinar in association with NSE Clearing Limited on the topic “Overview
on SLB – Operations & Settlement.” The session provided members with
operational clarity on securities lending and borrowing mechanisms,
strengthening compliance and market preparedness.
21st February 2026, ANMI Western
Region also successfully organised ANMI Technology Exhibition – StockTech
2026, showcasing technological advancements and innovation shaping the
future of market intermediation.
9th March ANMI has
arranged a special talk programme on RSS @ 100: Long Term Mission in a
Short Termist World with Shri S. Gurumurthy, Writer and Public
Intellectual, Independent Director, RBI & Editor, Thuglak Weekly has
delivered the special address.
These engagements reaffirm ANMI’s
continued role as a constructive bridge between intermediaries, regulators, and
market infrastructure institutions.
February consolidates themes that
have been unfolding since mid-2025. Growth remains steady. Inflation is
contained. Fiscal consolidation proceeds alongside sustained capital
expenditure. Domestic ownership deepens even as foreign participation fluctuates.
Primary markets have moderated, but secondary activity and technological
adoption have intensified.
The balance has shifted—towards
greater internal capacity to absorb volatility. The discipline of growth,
fiscal credibility, and evolving market microstructure will define how India
navigates 2026.
It always seems impossible until it’s done
-Nelson Mandela
Warm regards,
CA K Suresh
National President
ANMI