India Capital Growth Fund Limited

In June 2026, Indian equity markets performed strongly, with the Sensex up 2.3%, and the mid- and small-cap indices rising 1.5% and 5.3%. Sector performance was mixed: Banks and Realty led (+6% each), followed by Healthcare (+5%), while IT (-9%), Metals (-8%) and Power (-9%). Domestic institutional investors provided key support with net inflows of US$9bn, comfortably offsetting foreign outflows of US$3bn. The Rupee appreciated 0.8% against the US Dollar. In a significant policy move to deepen domestic capital markets and strengthen external balances, the government removed withholding and capital gains taxes on foreign investments in government securities, boosting the appeal of Indian fixed income to global investors. Inflation remained benign, with May CPI at 3.9% (April: 3.5%), within the Reserve Bank of India's target range and reinforcing expectations of an accommodative policy stance. At the portfolio level, the strongest positive contributors were CarTrade Technologies (+55%), Gokaldas Exports (+26%) and Aether Industries (+24%). Key detractors included Persistent Systems (-17%), Atlanta Electricals (-8%) and Triveni Turbine (-7%).