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According to PL Asset Management, the asset management arm of PL Capital Group (Prabhudas Lilladher), while global markets reacted sharply to disruptions in energy supply and shifting monetary policy expectations, Indian equities showed relative stability, underpinned by strong domestic macroeconomic fundamentals, robust liquidity conditions, and continued institutional participation. It highlights that resilient macro and supportive domestic liquidity has cushioned India against any geopolitical headwinds.

However, PL Asset Management warns that India's macro picture could turn adverse as a confluence of risks — rising crude prices, a weaker rupee, slower global growth, disrupted logistics chains, and tighter global financial conditions — could together widen the fiscal deficit, slow GDP growth, and erode the macro tailwinds currently supporting market confidence. The firm notes that this scenario demands vigilance, not complacency.

Escalating geopolitical tensions, particularly US–Israel strikes on Iran in late February, have raised concerns around potential disruptions in the Strait of Hormuz—a critical artery handling nearly 20% of global oil supply—thereby heightening risks to India’s current account and inflation trajectory through elevated crude prices.

PL Asset Management highlights that India’s growth momentum continues to remain robust, with Q3 GDP expanding by 7.8% and full-year FY26 growth projected at 7.6%, supported by healthy private consumption growth of 8.7% and a sharp 13.3% expansion in manufacturing.

It expects the India–US tariff reduction, the progress on the India–EU FTA, and the government’s Rs.12.2 lakh crore infrastructure push under Budget 2026 to boost export competitiveness, unlock new growth avenues, and accelerate the domestic capex cycle, reinforcing India’s medium-term growth outlook.

On inflation, PL Asset Management notes that it remains comfortably within the RBI's tolerance band, providing policymakers with room to manoeuvre. In fixed income markets, bond yields have edged higher, with the 10-year G-Sec hovering around 6.70%, largely influenced by global yield movements and elevated supply expectations.

Importantly, it notes that the recent market corrections have created a more favorable valuation backdrop, with the Nifty trading at a 5.6% discount to its five-year average PE, enhancing the medium-term risk-reward for investors. FIIs recorded net outflows of Rs.6,640 crore, strong countervailing inflows from DIIs to the tune of Rs.38,423 crore, along with sustained SIP participation, have helped anchor equity markets.

Mr. Siddharth Vora, Head - Quant Investment Strategies & Fund Manager, PL Asset Management said, “The global environment is transitioning into a high-uncertainty, liquidity-constrained regime, driven by geopolitical risks and persistent energy disruptions. Elevated crude prices are expected to keep inflation sticky and interest rates higher for longer, creating pressure on earnings, fiscal balances, and currency stability, with the rupee remaining vulnerable. While valuations may appear reasonable on the surface, rising input, energy, and financing costs pose a meaningful risk to earnings, increasing the likelihood of valuation compression. Market sentiment remains fragile, with flows and liquidity conditions playing a critical role in near-term direction. As a result, markets are likely to remain event-driven and volatile, reacting sharply to developments in geopolitics and energy prices. In this environment, disciplined risk management and selective positioning become essential. A preference for large caps, along with factors such as value, quality, and low volatility, is likely to be more resilient. Sectorally, metals, energy, pharma, industrials, autos, and PSU financials appear relatively better placed, supported by domestic and cyclical drivers. Gold continues to serve as an important hedge in portfolios. Despite near-term volatility, such corrections typically create opportunities for calibrated, value-driven allocation for long-term investors.”

Despite a challenging global backdrop, PL Asset Management has continued to deliver consistent outperformance across its portfolio strategies. The firm's disciplined, data-driven investment approach — built to navigate volatility rather than react to it — has enabled it to generate meaningful alpha through one of the market's most turbulent periods in recent memory.

AQUA Outperforms Benchmark with Strong Alpha and Consistent Top-Quartile Rankings

AQUA – February 2026 Performance Highlights

* Strong Monthly Outperformance:
AQUA delivered +2.31% in February 2026, significantly outperforming the BSE 500 TRI (+0.45%).

* Consistent Top-Quartile Performance:
Maintained Quartile-1 rankings across PMS and mutual fund peer universes over 1-, 3-, 6-, and 12-month periods.

* Robust Long-Term Alpha:
Since inception, AQUA has delivered 22.44% annualised returns, compared to 15.65% for the benchmark, generating a 6.79% alpha.

What Drove Outperformance

 Market Cap Allocation – Balanced Exposure with Downside Control

* Large Cap (49%) and Mid Cap (33%) exposure contributed positively, with both segments outperforming during the month. Limited Small Cap exposure (~9%) helped avoid volatility-driven drawdowns.

* ~8% Cash allocation provided stability and reduced downside participation

Factor Positioning – Value Leadership with Stability

 * Value factor (+5.54%) was the strongest contributor to performance. Low Volatility exposure supported portfolio resilience during market turbulence. Underweight to Quality (–1.81%) further enhanced relative outperformance

Sector Allocation – Effective Cyclical Positioning

 * Overweight sectors (alpha contributors):
Metals, PSU Banks, Auto, Energy, Industrials
Benefited from domestic capex, infrastructure spending, and credit growth

* Underweight sectors (alpha protection):
IT, Consumer Staples
IT corrected sharply (~–20%), making underweight positioning a key alpha driver

MADP Continues to Navigate Market Cycles Effectively

 MADP – February 2026 Performance Highlights

* Steady Outperformance:
MADP delivered +0.67% in February 2026, outperforming its benchmark return of +0.58%.

* Consistent Top-Quartile Performance:
Maintained Quartile-1 rankings across PMS and mutual fund peer universes over the 1-, 3-, 6-, 9-, and 12-month periods.

* Strong Long-Term Returns:
Over the past three years, MADP has delivered 17.48% annualised returns, outperforming the benchmark return of 13.89%.

 What Drove Performance

 Gold Allocation – Return Driver & Risk Cushion

* Gold (+8.32% in February) was a key contributor to returns. ~34% allocation to Gold provided effective diversification during a period of macro and geopolitical uncertainty.Helped cushion portfolio volatility and reduce equity-driven drawdowns

Diversified Equity Exposure – Balanced Participation

Equity allocation remained well-diversified across market caps:

* Large Cap: 34%

* Mid Cap: 13%

* Small Cap: 19%

* Enabled participation in growth opportunities while maintaining diversification across segments.

Dynamic Multi-Asset Framework – Adaptive Allocation

* Timely rebalancing across equity and gold ensured alignment with evolving macro signals. Enabled the portfolio to balance return generation with risk control

Risk & Stability Advantage

* MADP Volatility: 7.95%
* 28% lower than Nifty 50 (10.98%)
*  45% lower than standalone Gold (14.34%)

* Demonstrates superior risk-adjusted performance, delivering a smoother return profile compared to individual asset classes

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