CEO Speak March 2026

The month of March has been marked by heightened uncertainty in global financial markets, largely influenced by geopolitical developments in West Asia. Such events tend to create sharp reactions across asset classes, often leading to volatility in equity, currency, and commodity markets. While these developments can be unsettling, it is important for investors to interpret them with perspective rather than panic.

Correction Unlocks Valuation Comfort

Historically, geopolitical tensions have led to temporary disruptions in financial markets. Markets tend to react swiftly to uncertainty, but they also stabilise as clarity emerges. Over time, economic growth, business performance, and policy direction regain focus as the primary drivers of market returns.

Over the past three years, a mix of price correction and consolidation has helped bring market valuations closer to long-term averages, making them more reasonable for investors.

• BSE Small Cap index has corrected from a high of 57,827 in 2024 to around 45,225 in 2026, a decline of nearly 22 per cent from peak levels
• BSE Mid Cap index has moved from a high of 49,701 in 2024 to about 42,138 in 2026, reflecting a correction of nearly 15 per cent from peak levels
• The BSE Sensex, after touching an all-time high of ~86,000 in 2025, is currently around 74,500, representing a correction of roughly 13–14 per cent from peak levels

Source – BSE India. Period under consideration for all three indices is Jan 1, 2024 to March 20, 2026.Past performance may or may not be sustained in the future.

These are healthy adjustments following periods of strong rally and elevated expectations.

India’s Structural Strength Remains Intact

India’s medium- to long-term growth drivers remain stable. Domestic demand, infrastructure development, and policy continuity continue to support the broader economic outlook.

A strengthening earnings cycle continues to provide an important anchor for markets, with Nifty 50 earnings estimated to grow at ~15 per cent CAGR between FY20 and FY27, supported by healthier balance sheets, improved profitability, and sustained economic momentum. This suggests that the recent market consolidation is occurring alongside robust earnings growth, which can help support valuations over the medium to long term.

Earnings trend

Source: MOSL, Bloomberg, Data as on 27 February 2026. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Note: The details provided above is as per the information available in public domain at this moment and subject to change. Please consult your financial advisor for any investment decisions.

For investors, such phases have historically presented opportunities rather than setbacks—making it prudent to stay invested, continue SIPs, and gradually deploy surplus funds through STPs to potentially benefit from volatility-led averaging.

It is important to remember:

• Markets have navigated geopolitical uncertainties or events in the past
• Sharp corrections are often followed by swift recoveries
• Missing the recovery phase can significantly impact long-term returns

The Way Forward for Investors

At HSBC Mutual Fund, we continue to believe and advise that the most effective investment behaviour is often the simplest:

• Stay aligned to your long-term financial goals
• Maintain asset allocation discipline
• Avoid making reactive decisions based on short-term developments

As investors, our strength lies not in predicting every market movement, but in staying committed to a disciplined investment approach.

Remain patient. Remain invested. And most importantly, remain confident in the long-term journey.

Views provided above are personal and based on information in public domain and subject to change. Investors are requested to consult their financial advisor for any investment decisions.

Source: AMFI, BSE, HSBC MF Research. Data as on March end, 2026 or as latest available

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