Sbi Funds Management Limited · NSE:SBIFUNDS
Sbi Funds Management — Investor Presentation (March 2026)
58 slides from Sbi Funds Management's investor presentation, March 2026
Slide 1: Economy and Markets March 2026
ECONOMY AND MARKETS March 2026
Slide 2: Artificial intelligence drives global investment cycle
Artificial intelligence drives global investment cycle Tech giants collectively expected to spend at ~US$650bn on AI in 2026 • AI related capital expenditure remains one of the most resilient components of global investment. • These outlays are not only supporting growth within the technology sector
Slide 3: AI investments spill over: PMI recovery, stronger global exports
AI investments spill over: PMI recovery, stronger global exports AI led capex revives global manufacturing 2026 growth expectation sees upward revision for most economies 75 Bloomberg Real GDP For the year 2025 as on: For 2026 as on: 71 expectation (% y-o-y) Jan-25 Apr-25 Dec-25 Dec-25 Feb-26 67 US
Slide 4: US job markets holds for now despite AI concerns
US job markets holds for now despite AI concerns US Nonfarm payroll addition was better than expectation in …though, wage growth moderates and… January; 130k jobs added in Jan 2026 in nonfarm payroll 350 280 8.0 241 237 228 300 225 218 206 250 7.0 175 163 159 156 155 154 134 130 127 200 108 6.0 5.9
Slide 5: Despite growth recovery, US inflation expectations contained for now
Despite growth recovery, US inflation expectations contained for now Despite improving growth prospects, inflation expectations Easing services inflation amidst moderating wage growth helps remain contained for now 7.0 8 6.5 7 6.0 % y-oy 6 5.5 5.0 5 4.5 4 4.0 3 3.5 2 3.0 2.5 1 2.0 0 Jul-24 Jul-19 Ju
Slide 6: With improving growth, monetary easing prospects gets dimmer
With improving growth, monetary easing prospects gets dimmer Rising divergence in global monetary policy cycles: Australia US Fed rate cuts gets pushed out (now first cut fully priced in for ends its two years easing cycle July 2026 vs. March 2026 previously Annual Policy Rate (in %) 2023 2024 2025
Slide 7: AI reshapes the global equity market leadership
AI reshapes the global equity market leadership US semiconductors soar to fresh highs, whereas software names In 2026, digital assets have sold off while industrials, staples, endure steep corrections energy and materials (old economy sectors) fare better • While there is legitimate debate about whe
Slide 8: Resilient growth data sets the stage for steeper yield curve
Resilient growth data sets the stage for steeper yield curve US 30yr-2yr curve continue to steepen • Persistent commodity strength and resilient economic data could lead markets to price in bear-steepening risks. 400 • Rising term premiums may push long-end yields higher even 300 without further cen
Slide 9: US Supreme Court strike down of IEEPA tariffs adds to uncertainty
US Supreme Court strike down of IEEPA tariffs adds to the layer of uncertainty Nation wide announced tariff rate before and after US Supreme Nation wide effective tariff rates: before and after Supreme Court Court ruling ruling • Positive India–US trade deal news faded quickly after the US Supreme C
Slide 10: Global Asset Class Performance: Commodity and EM equities outperform
Global Asset Class Performance: Commodity and EM equities are the outperformer Precious metals is the best performing asset class Year-to-date: EM equity follows • Year-to-date 2026 has witnessed a strong performance in commodities. Precious metals delivered the strongest % change 2024 2025 M-o-M YT
Slide 11: Commodity prices trends: Broad based rise in commodity prices
Commodity prices trends: Broad based rise in commodity prices Commodities rise in 2026; YTD Bloomberg commodity index has Year-to-date, precious metals and industrial metals have been the risen by 10% best performing commodity basket Energy and select agri commodities drive higher commodity prices m
Slide 12: Gold and Silver touches new highs in 2026
Gold and Silver touches new highs in 2026 Silver has outperformed gold by almost 70 % pt cumulatively The Three Historical Gold Cycles- 1971–80 (12x), 2002–12 (6x), since 2023 2019–Present (4x) 420 81% rise in gold 120 1977-80 370 1971-75 387% 2002-12: 2019-25: Jan 2022=100 100 320 350% 516% 300% 80
Slide 13: Valuation appears stretched: Precious metals could be more volatile in 2026
Valuation appears stretched: Precious metals could be more volatile in 2026 Gold and Real yield relation – asymmetric since Russia Ukraine Gold to Silver ratio now at neutral: With Silver at US$ 77 per ounce and gold near US$ 5000 per ounce 100 120 Latest: -30bps, Gold is expensive % y-o-y change in
Slide 14: Dollar stays sideways, softening bias remains for 2026
Dollar stays sideways, softening bias remains for 2026 Dollar sees a strong start in 2025, weakens in Q2 and then • If there is a theme across EM underpinning the strong stabilizes July onwards performance, it is the dollar weakness. • For the very near future, USD weakness from Trump’s trade policy
Slide 15: India Economic Activity
INDIA ECONOMIC ACTIVITY MANAGEMENT LIMITED
Slide 16: India's Q3 FY26 real growth moderates; but nominal improves
India’s Q3 FY26 real growth moderates ; but nominal improves Source: MOSPI, SBIFM Research
Slide 17: Key highlights from new GDP series
Key highlights from new GDP series • MOSPI released a new GDP series (base 2022–23) with major methodological upgrades, including expanded deflators and double deflation for manufacturing. • As per the new series, India’s Real GDP grew 7.8% in Q3 FY26, moderating from Q2 (8.4%) but slightly above ex
Slide 18: High frequency data heatmap
High frequency data heatmap Bank credit, and consumption-oriented data holds up (corporate wage, auto sales, tractor sales, consumer sentiment) %y-o-y Jan-00 FY24 FY25 1HFY26 Oct-25 Nov-25 Dec-25 Jan-26 GST collections (Rs. Billion) 11.7 9.4 9.8 4.6 -4.0 1.3 2.0 Overall Macro Bank Credit (Rs. Tn) 19
Slide 19: India's growth trajectory remains positive (2/2)
India’s growth trajectory remains positive (2/2) Steel and cement consumptions at healthy levels. Earnings commentary suggest improving orders for industrial companies %y-o-y Jan-00 FY24 FY25 1HFY26 Oct-25 Nov-25 Dec-25 Jan-26 Manufacturing PMI* 57.2 57.4 58.4 59.2 56.6 55.0 55.4 Services PMI* 60.3
Slide 20: Growth support #1: Easy monetary and regulatory conditions lead to private credit revival
Growth support #1: Easy monetary and regulatory conditions lead to private credit revival Bank credit growth is improving Broad-based pick-up in bank lending 20.2 21 % CAGR May'25 Dec-25 % pt change 15.0 14.5 14.5 12.5 16 Bank Credit 9.0 14.5 5.5 11.5 11.0 10.4 10.3 10.0 10.0 9.5 Non-Food Credit 8.8
Slide 21: #2: GST rate rationalisation benefitted auto sales
#2: GST rate rationalisation benefitted auto sales; tractor and commercial vehicle sales also recover Domestic passenger vehicle and two-wheeler sales see a sharp Tractors sales also see a meaningful recovery rise 30 26.5 21.0 20.5 40 18.0 32 15.7 FY26 (%y-o-y) 20 10.2 30 10.2 7.6 18 19 20 10 8 10 1
Slide 22: #3: Boost to consumption with lower inflation and easing rates
#3: Boost to consumption with lower inflation, improved affordability and easing interest rates Corporate wage growth sees a marginal improvement in Consumer sentiment is improving December quarter 20 135 15 120 105 96 10 100 90 93 5 75 0 60 -5 45 45 Jun-21 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Slide 23: #4: Export sector will see a level playing field on tariffs
#4: Export sector will see a level playing field on tariffs India’s export growth significantly underperformed its emerging Electronic sectors maintained healthy growth despite tariff uncertainty; market peers in 2025 Textiles, gems and jewellery could see a recovery now Exports (2025 % y-o-y) 36.7
Slide 24: #5: 2026 Union budget focuses on infrastructure spend
#5: 2026 Union budget focuses on infrastructure spend and incentivizing private capex Centre’s pace of fiscal consolidation is moderating Infrastructure oriented spend budgeted to rise 18% in FY27 Rs. Billion % y-o-y 9.2 10.0 FY25 FY26BE FY26RE FY27BE FY26RE FY27BE Power 777 865 864 1,021 11 18 9.0
Slide 25: #6: Reflationary cycle is supportive for growth-oriented companies
#6: Reflationary cycle is supportive for growth-oriented companies Domestic metal prices see a sharp rise Rise in global commodity prices puts upward pressure on WPI; Could lead to better pricing power for corporates 80 20 40 %y-o-y 30 60 15 40 20 10 10 20 5 0 - 0 -10 -20 -5 -20 -40 -10 -30 Jul-15 J
Slide 26: Real estate momentum underwhelms expectations
Real estate momentum underwhelms expectations Real Estate launches and sales growth is underwhelming till Fall in home loan rates improves affordability, developers still September 2025; sees some improvement though positive on outlook 200 12.00 (%) % y-o-y (3mma) 11.00 150 10.00 100 Rates below pre
Slide 27: Software exports crucial for India's external balances
Software exports are crucial for India’s external balances - could AI disruptions threaten this strength? Rising software exports helped offset India’s trade deficit Software services exports continuously delivered positive y-o-y growth since 2000s 40 35.1 35.1 4.9 31.8 31.0 35 4.6 5.0 29.7 28.8 4.4
Slide 28: Positive outlook on FY27 growth backed by policy thrust and credit revival
Positive outlook on FY27 growth backed by policy thrust and credit revival • Several factors are driving growth recovery in India: • Monetary and regulatory easing is now translating into stronger private credit growth • GST rate rationalisation has supported consumer India’s growth expected at 7.3-
Slide 29: Equity Market
EQUITY MARKET MANAGEMENT LIMITED
Slide 30: Global equity market snapshot: February 2026
Global equity market snapshot: February 2026 Performance in February 2026 (local currency returns) YTD performance (local currency returns) Performance in February 2026 (US$ returns) YTD performance (US$ returns) Source: Bloomberg, SBIFM Research
Slide 31: Indian equity market snapshot: February 2026
Indian equity market snapshot: February 2026 Indian equity market performance in February 2026 (local currency YTD performance (local currency returns) returns 15 9.0 7.0 6.2 5.7 5.3 4.9 4.3 4.1 10 % m-o-m 0.02 0.01 2.1 1.6 1.5 1.4 0.4 5 0 -5 -0.3 -0.6 -0.6 -1.2 -10 -15 -20 IT -18.7 -25 CAP GOODS NI
Slide 32: Liquidity: FIIs sold Indian equities for two years in succession
Liquidity: FIIs sold Indian equities for two years in succession; Nascent signs of turnaround in Feb FIIs see marginal recovery in February 2026 DIIs support to Indian equity market 40 29 90 100 25 23 30 21 90 20 19 18 16 80 14 63 20 11 70 2.6 9 3.8 8 8 10 7 60 3 3 3 50 2 36 1 1 0 40 22 30 17 16 -1
Slide 33: MF flows: SIP flows flat in January 2026
MF flows: SIP flows flat in January 2026 Equity inflows moderate in January 2026 compared to a month Debt inflow of INR 753bn in Jan’26 (vs. INR 26bn inflow in Q3FY26 ago and outflow of INR 11bn in Q2FY26) Monthly SIP inflow flat m-o-m in January Equity and debt AUM broadly flat m-o-m Source: CMIE E
Slide 34: NIFTY PAT growth continues to be weak
10 30 40 20 50 0 -20 -10 20 40 60 80 0 -40 -20 100 120 Sep-14 6 Sep-14 5 Dec-14 2 Dec-14 -6 Mar-15 -5 Mar-15 -12 Jun-15 5 Jun-15 -2 Sep-15 1 Sep-15 0 Dec-15 5 Dec-15 -7 Mar-16 15 Mar-16 1 Jun-16 8 Jun-16 -3 Sep-16 11 Sep-16 -3 Dec-16 9 Dec-16 7 Mar-17 3 Mar-17 7 Jun-17 -7 Jun-17 -6 Sep-17 18 Sep-17
Slide 35: Q3 FY26 earnings review: Broad based recovery
Q3 FY26 earnings’ review: Broad based recovery • The Q3FY26 corporate earnings scorecard saw an improvement, with an improvement in sectoral breadth of earnings growth. • NIFTY PAT growth was 7.5% y-o-y in Q3FY26 (vs. 2% in the previous quarter). Even as Capital goods, Auto, Metals and O&G have reco
Slide 36: Earnings revisions marginally fell in February
Earnings revisions marginally fell in February Earnings Upgrades to downgrades ratio marginally fell in Financial Year to Date, EPS projection sees marginal downgrade February 90% -6.6 FY26 (Till Feb) 80% FY25 -3.3 70% Earnings upgrade -1.3 FY24 60% downgrade- % chg -4.9 FY23 50% 1.5 FY22 40% -2.4 F
Slide 37: Earnings projections ~9% in FY26
Earnings projections ~9% in FY26 Earnings expected to recover in FY26 Sectoral breakup of NIFTY earnings outlook EPS Change 1,011 1,059 1,089 1,200 40 No. of FY2 FY21- FY22- FY23- FY24- FY25- FY26- FY27- FY25-28 1,000 Cos. 0-21 22 23 24 25 26 27 28 (CAGR) 822 30 743 800 Nifty 20.0% 35.7% 5.9% 29.5%
Slide 38: Equity valuations corrected marginally but remain moderately expensive
Equity valuations corrected marginally but remain moderately expensive in absolute terms Sensex trailing PE ratio stood at 23.3 in Feb’26 vs. 23.9 in Jan’26 Earnings yield to bond yield spread has corrected 34.0 Current : 23.3 4.0% Current : -2.36% 30.0 Average : 20.4 2.0% Average : -2.18% Percentil
Slide 39: Polarization remains low, favorable towards large caps
Polarization remains low, remains favorable towards large caps Market capitalization/GDP expensive vs. history at 97th percentile Mid caps and small caps: Market polarization remains favourable reading towards large caps 200 Current: 139 57% Current : 39.9% 55% Average : 47.5% Average: 80 53% 150 Pe
Slide 40: Equity market sentiment moving up
Equity market sentiment moving up Equity sentiment remains above zero & moves up Equity sentiment remains above zero 100% 2.50 80% 2.00 Zone of Complacency => SELL 80% Zone of Complacency => SELL 60% 1.50 60% 40% 1.00 R² = 0.3227 12m fwd returns 20% 40% 0.50 0.00 0% 20% Dec-06 Apr-09 Apr-15 Apr-21 F
Slide 41: Equity Outlook: Focus on large caps, bottom-up stock selection
Equity Outlook: Focus on large caps, bottom-up stock selection, and sectors resilient to margin pressure • Indian equities entered 2026 with elevated volatility. Markets fell in January (Nifty −3.1%, Sensex −3.5%) and remained largely flat in February, with a marginal Nifty decrease of 0.6% y-o-y. •
Slide 42: Fixed Income Market
FIXED INCOME MARKET MANAGEMENT LIMITED
Slide 43: Global Bond Market Snapshot: Global bond yields fell in February 2026
Global Bond Market Snapshot: Global bond yields fell in February 2026 All developed market and majority of emerging markets’ 10yr government bond yields moderated m-o-m in February 2026 m-o-m change FYTD change 10 Year Gsec Yield (% mth end) 2024 end 2025 end Jan-26 Feb-26 (in bps) (in bps) Develope
Slide 44: Indian rates market see upward pressure in yields YTD
Indian rates market see upward pressure in yields YTD- particularly in money market segment Interest rates in India have been rising across segment YTD; This rise is visible in money market rates, shorter tenor government securities (G-sec) yields, and corporate bond yields m-o-m FYTD change (in Rat
Slide 45: Indian G-sec yields curve steepened significantly
Indian G-sec yields curve steepened significantly G-Sec yields rallied during Jan-May 2025, but worsened there since post the June 2025 policy (impact of a tight demand supply and weaker rupee) Yield (%) 3 Month 6 month 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 15 Year 3
Slide 46: Simultaneous expansion of private and government credit creates tight dynamic
Simultaneous expansion of private and government credit creates tight demand-supply dynamic Visible steepening in G-sec yield curve in the last year Similarly corporate bond yield curve steepens with rising private sector credit 7.50 7.80 India G-Sec yield (%) 7.00 7.60 6.50 7.40 6.00 7.20 5.50 7.00
Slide 47: Reduced bank participation in SLR securities drives up CD spreads
Reduced bank participation in SLR securities and increased CD issuances drive up CD spreads Banks participation in SLR securities decline as incremental Certificate of Deposits (CD) issuances rise funds are directed towards loan growth 5,135 4,668 6,624 6,000 Incremental demand by Commercial Banks 7
Slide 48: CPs and Corporate bond issuances are tepid
CPs and Corporate bond issuances are tepid due to attractive bank loan rates vs. market rates Commercial Papers (CP) issuances are muted; Rise by only ~3% Corporate bond issuances moderate; Outstanding credit disbursed via y-o-y (vs. 18.4%) Corporate Bond (NCDs) moderated from 15.5% y-o-y growth to
Slide 49: SDL supply rises; FYTD26 SDL gross issuances 23% higher
SDL supply rises; FYTD26 SDL gross issuances are 23% higher y-o-y SDL issuances elevated; At 88% of their indicated calendar Yet, SDL spreads contained amount in FYTD 26 132 500 123 200 LTA since 2006: 55 bps 450 10 year avg. 56 bps 105100 103 105 180 400 97 97 92 5 year avg. 48 bps 89 88 84 90 90 8
Slide 50: Inflation outlook signals for status quo on policy rates
Inflation outlook signals for status quo on policy rates CPI trajectory shows gradual upward movement; January headline CPI at 2.75% y-o-y (vs. 1.3% in December 2025) % y-o-y Old Wt New Wt Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 CPI 100.0 100.0 2.1 1.6 2.1 1.4 0.3 0.7 1.3 2.75 CPI: F
Slide 51: Monetary policy likely headed for a long pause
Monetary policy likely headed for a long pause– liquidity actions at the fore • The Monetary Policy Committee kept the repo rate unchanged at 5.25% at its latest meeting in February 2026. The stance remains at neutral. • The CPI trajectory shows a gradual upward movement. Even after the release of t
Slide 52: Banking system liquidity is tight due to FX outflows
Banking system liquidity is tight due to FX outflows despite massive liquidity infusion RBI provided massive liquidity support since December 2024 Durable liquidity remains low despite RBI liquidity measures due to increased intervention in FX market Liquidity management measures by RBI since Done t
Slide 53: External sector: Balance of Payment dynamics may provide relief
External sector: Balance of Payment (BoP) dynamics may provide some relief to liquidity A potential BOP surplus could ease external pressures and FII flows see a turnaround on easing tariff concerns and earnings provide some support to domestic liquidity conditions uptick 45 50 40 Balance of Payment
Slide 54: Indian G-sec valuations: neutral
Indian G-sec valuations: neutral G-sec spread vs. equity turns neutral Real rate turns positive G-sec spread can stay compressed in the period of monetary easing India vs. US yield adjusted for inflation in line with long term trend 10.0 1000 -65bps 800 Latest Rank: 63 percentile 9.0 5bps 8.0 40bps
Slide 55: FIIs are net buyers of Indian government bonds
FIIs are net buyers of Indian government bonds in January and February 2026 India witnessed Debt inflows in 2025 and beginning 2026 FII flows in EM bonds are muted despite healthy inflation adjusted returns; as risk premium vs. DM bonds is largely erased 10 year G-sec Real Rate (%, 12M FX EM FII Deb
Slide 56: Debt Outlook: Prioritize accrual over directional duration bets
Debt Outlook: Prioritize accrual over directional duration bets • Interest rates in India have risen across segments—money markets, G secs, and corporate bonds—with a notable steepening of the yield curve. This is driven by the simultaneous expansion of private sector credit and government borrowing
Slide 57: Disclaimer
Disclaimer This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed
Slide 58: Contact Details
Contact Details SBI Funds Management Limited Call: 1800 425 5425 (A joint venture between SBI and AMUNDI) SMS: “SBIMF” to 7065611100 Corporate Office: 9th Floor, Crescenzo, Email: customer.delight@sbimf.com C-38 & 39, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 Visit us @ www.face
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