Sector Updates

IRDAI Distribution Reforms: Structural Reset in Distribution Economics

Textiles Sector Report Tailwinds Converging for a Multi-year Upcycle

Asset Management Companies Sector Update Fragmentation increasing in the AMC sector

Power Sector Update Transmission: PWGR leads near-term execution visibility

Consumer Durables Sector Update RAC leads rebound, margins remain muted

India’s CPI inflation rose to a 20-month high of 4.8% in August from 4.5% in July, driven by delayed monsoon showers and supply disruptions due to the West Asia war. Meanwhile, WPI inflation also surged to 9.9%, marking its second-highest print in 29 months, amid a fresh hardening in energy costs.

Nomura shifted its RBI repo rate call from a hold to two 25 bps hikes in October and December, taking the rate to 5.75%, citing rising food and oil prices and stronger underlying inflation. It expects headline inflation to rise to ~5.7% in September from 4.8% in August, while core inflation stays around 4.2%.

The domestic chemical pricing environment continued to firm up through August and into September 2026, with almost every chemical tracked, posting a sequential gain alongside a sharp year-on-year increase. Much of the recent price strength is attributable to the West-Asia conflict, firmer crude, and...

Retail and agriculture supported NBFC credit growth: Retail loans accelerated to 21.4% YoY from 13.7% a year ago, led by gold loans (+68.5% YoY), consumer durables (+51.5%), vehicle loans (+15.1%) and housing (+11.9%), while agriculture credit accelerated to 18.0% YoY from 5.4% a year ago. Services growth moderated and industry remained subdued: Services credit grew 15.2% YoY vs 24.5% a year ago, despite strong commercial real estate growth of 22.3% YoY. While Industrial credit grew 7.4% YoY, with infrastructure credit at 6.2% YoY, reflecting continued moderation in the segment....

During Aug-26, Indian HRC prices increased by 7.5% MoM to Rs62,000/tonne, backed by strong seasonal recovery creating a multi-year high. Chinese HRC prices increase by 1% MoM to $500/tonne, driven by increase in raw material prices. In Jul-26, Indian steel production increased by 2.1% MoM to 14.4mn tonnes. Estimated Chinese steel output decreased by 8.1% MoM to 77mn tonnes, while estimated global steel production...

The Defence Acquisition Council (DAC) is India's apex body for approving capital acquisition proposals for the Indian armed forces. Chaired by the Raksha Mantri (Defence Minister), the DAC's primary function is to accord Acceptance of Necessity (AoN);

Information Technology Sector Report BPO to intelligent solutions, the next growth chapter

Indian HRC: Indian HRC prices increased by 3.8% WoW to Rs 62,000/tonne, reaching multi-year high. Driven by improving demand expectations from infra and auto sectors coupled with rising raw material costs and reported inventory replenishment in the channel. Billet-Ex-Raipur: Billet prices decreased by 1.8% WoW to Rs 41,800/tonne, amid subdued market activity and lower buying interest in the semi-finished steel segment. HRC-Patra Spread: Primary HRC-Patra spread increased by Rs2,650...

India's automotive sector sustained its strong momentum through August 2026, with wholesale volumes posting healthy double-digit growth across most segments as dealers-built inventory ahead of the festive season.

Sector Update - FCNR (B) Deposit Mobilisation Update

Automobiles Monthly Update Festive Stocking Fuels Auto Volumes

In our monthly Hotels update, we have summarized key events of the domestic hotel industry, new hotels signing/addition by key players during the month and pricing trend of key cities in August, 2026. We have analyzed pricing of 171 hotels with ~33,000 keys across 8 cities to understand the trend over last 24 months (Exhibit 1-8). ADR on MoM witnessed gradual recovery, aided by higher ADR across the industry around Independence Day weekend. Further, the industry is gearing up for travel related to festive and weddings season ahead, apart from pick up in corporate travel and increased MICE activities. The management commentary post Q1FY27 result was...

We prefer Bajaj Auto and TVS Motors in 2W, and M&M (non-coverage) as a play in the PV/LCV/Tractor segment. We also like Ashok Leyland and Tata Motors (non-coverage) in the CV space, followed by a close watch on Eicher (VECV) for any market share gains.

Cement Sector Update Cement prices holding till now, but macros worsening

Consumer Durables Sector Update UltraTech W&C expansion barely cements an impact

Banking non-food credit growth remained strong in Jul'26, with gross bank credit rising 19.3% YoY and 2.6% MoM to Rs220.8tn, while non-food credit grew 19.1% YoY. Growth remained broad-based across key segments, with agriculture credit expanding 17.0% YoY, industrial credit accelerating to 20.0% YoY and services credit rising 22.9% YoY. Within industry, growth was led by MSMEs (+22.6% YoY) and Medium Industries (+30.5% YoY), while services growth was supported by NBFCs (+35.7% YoY) and trade (+19.8% YoY). Retail credit remained healthy at 16.2% YoY, driven by vehicle loans (+18.8% YoY) and continued strong growth in gold loans...