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The Indian markets are trading weaker following the outbreak of hostilities in the Persian Gulf. This is a continuation of the subdued trend that has persisted since early 2024. The Nifty has fallen 6.65% (in USD terms) over the two-year period from April 2024 to April 2026. During the same period, the S&P 500 delivered a return of 43.16%, while the MSCI EM Index posted returns of 52.99%. Importantly, both these indices are denominated in US dollars.

Many investors are grappling with the uncertainty caused by the West Asia conflict. The objectives are unclear and the mixed messaging from the US administration is keeping Iran, as well as the global economy and markets, on tenterhooks.

Policy Action

• The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 5.25%.

The Indian IT services industry is at a crossroads again, raising questions about how disruptive the next technology wave could be. Interestingly, this is not the first time that the sector has been perceived to be under existential threat; we have been here a few times before.

Happy Holi! The season of colours is upon us. On this happy day, we mark the beginning of spring and the end of winter. May this auspicious day add colour to your lives.

Key Takeaways

Policy continuity: The RBI held the repo rate at 5.25% and retained its “Neutral” stance, reinforcing the December policy framework.

“The patterns repeat, though the details never do.”
—Howard Marks, American investor and co-founder of Oaktree Capital Management

Investors always like to analyse different mutual funds on various parameters before making an investment decision. Two key factors they look at are the potential for return promised by the scheme and the risk profile. While investors can look at the past performance of a fund to analyse the first factor, they need a tool to measure the volatility of a fund. A popular metric used for this purpose is called beta.

Is it really different this time?

There’s a famous line often attributed to Mark Twain – ‘History doesn’t repeat itself, but it often rhymes’.

Extended Internal Rate Of Return (XIRR) and Compound Annual Growth Rate (CAGR) are two important metrics most investors consider while reviewing the performance of their mutual fund investments. Although both metrics are crucial to track performance, they are used in different scenarios. Hence, for any investor, it becomes essential to understand these metrics to track their portfolio performance accurately.