India Capital Growth Fund Limited

Last month Indian equity markets delivered a mixed performance. The BSE Sensex declined by 1.5%, while Mid-Cap and Small-Cap indices gained 1.5% and 4.3%, respectively, reflecting continued investor appetite for select broader-market opportunities. Capital Goods (+3%), Metals (+2%) and Healthcare (+2%) outperformed while FMCG (-4%), Power (-3%) and Oil & Gas (-2%) lagged. Institutional flows remained supportive. Foreign institutional investors were net buyers for the second consecutive month, investing US$2.4bn while domestic institutional investors added a further US$6.1bn of net inflows. The Foreign Currency Non Resident deposit scheme continued to attract overseas capital, adding to the record forex reserves of US$ 740bn. The macroeconomic backdrop remained robust. GDP growth for Q2 FY27 exceeded expectations at 7.8% year-on-year, driven by exports and investment. Inflation stayed within the RBI comfort range, leaving its policy rate unchanged at 5.25%. At the portfolio level, the strongest contributors were Multi Commodity Exchange (+26%), Welspun India (+26%) and Uniparts India (+23%). The main detractors were PI Industries (-14%), PSP Projects (-10%) and GPT Healthcare (-10%).