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Racing Ahead While Struggling to Monetize

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Global Supply Chains at Risk as the U.S. Proposes 25% Tariff on AI Chips

Southeast Asia stands at a fascinating inflection point in the global AI revolution. While hyperscalers pour over $50 billion into regional infrastructure and adoption rates outpace global averages, a troubling paradox emerges from McKinsey’s latest research: companies are moving fast, but they’re not making money from it.

The Paradox

  • Southeast Asia is rapidly adopting AI, with 46% of companies scaling implementations — above global averages.
  • Despite heavy investment (over $50 billion from hyperscalers), 67% of firms report <5% EBIT impact.
  • The issue isn’t technology, but execution and monetization.

The newly released “AI in Southeast Asia: An era of opportunity” report reveals a region sprinting toward an AI-powered future yet stumbling over the chasm between deployment and profitability. This disconnect should concern every C-suite executive, policymaker, and investor betting on Southeast Asia’s digital transformation.

The Adoption Illusion

The headlines look impressive. Nearly half (46%) of Southeast Asian companies have moved beyond AI pilots to scaling implementations, edging ahead of the global average and outperforming most of Asia-Pacific excluding China and India. With 680 million consumers, a population of 380 million under age 35, and mobile penetration reaching 930 million connections, the region appears primed for AI dominance.

Singapore alone hosts over 60 AI centers of excellence. AWS, Google, Alibaba Cloud, and Tencent have collectively committed tens of billions to data centers across Indonesia, Malaysia, Thailand, and Vietnam. The Southeast Asia-Japan Cable 2 went live in 2025, promising the low-latency connectivity that AI applications demand.

Yet beneath this glittering surface lies an uncomfortable truth: 67% of surveyed organizations report that AI has delivered less than 5% impact on their earnings before interest and taxes. 

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This is not a technology problem. It’s an execution crisis.

The Value Capture Gap

The McKinsey research identifies three structural barriers preventing Southeast Asian firms from monetizing their AI investments:

Barriers to Value Capture

  1. Talent shortage — lack of skilled AI professionals.
  2. Integration complexity — legacy IT and fragmented data hinder scalability.
  3. Unclear ROI — companies spend boldly but measure poorly.

First, the talent drought is real and worsening. Twenty percent of respondents cite lack of internal AI expertise as their primary obstacle, not budget constraints, not regulatory concerns, but the simple inability to find people who can make AI work. As Alexandro Seminiano, CTO at Bank of the Philippine Islands, notes: “We need people who understand the business and the context of the data being generated.” 

Second, integration complexity is killing scalability. Sixteen percent of companies struggle to embed AI into existing systems, a problem compounded by legacy IT infrastructure and fragmented data environments that plague the region. AI isn’t plug-and-play; it requires fundamental workflow redesign that most organizations resist.

Third, the ROI remains unclear. Despite 64% of organizations allocating more than 11% of their technology budgets to AI initiatives, the business case for transformation remains murky. Companies are spending boldly but measuring poorly.

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What High Performers Do Differently

The report’s most valuable insights come from studying the outliers, the 8% of Southeast Asian companies that have achieved full-scale AI deployment. These high performers share three distinguishing characteristics:

They redesign workflows fundamentally rather than layering AI onto existing processes. High performers are twice as likely to integrate AI at the core of operations, not the periphery. Grab exemplifies this approach: their merchant AI assistant, deployed to over 1.2 million merchants, has driven 10% business growth by embedding intelligence directly into seller workflows. 

They invest boldly and consistently. High performers are 2.2 times more likely to expect enterprise-wide transformative change from AI, not incremental improvements. This isn’t about pilot projects; it’s about business model reinvention.

They embed rigorous AI governance. Nearly half of high-performing organizations demonstrate senior leadership ownership and commitment to AI initiatives, with formal governance structures that balance innovation with risk management.

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The Agentic AI Wildcard

Perhaps most intriguing is the emergence of agentic AI, autonomous systems that act on behalf of users with minimal human intervention. Ninety percent of surveyed companies plan to experiment with AI agents in 2026, with IT (37%), software engineering (35%), and knowledge management (32%) leading adoption.

This represents a quantum leap beyond today’s generative AI applications. Yet scaling agentic systems beyond technical functions will require precisely the custom development and MLOps expertise that the region currently lacks. The companies that solve this capability gap first will dominate the next competitive cycle.

The Geopolitical Advantage and Risk

Southeast Asia enjoys a unique strategic position as the battleground where Chinese and American tech giants compete for influence. AWS’s $9 billion Singapore commitment, Google’s $2 billion Malaysian data center, Alibaba Cloud’s expansion across the region, and Tencent’s Jakarta operations create a competitive ecosystem that benefits local enterprises through choice, pricing pressure, and accelerated innovation.

As Mayank Wadhwa, President of Microsoft ASEAN, observes: “Southeast Asia is not just a consumer of AI; it’s become a massive co creator.” 

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Yet this geopolitical dividend comes with risks. International hyperscalers could inadvertently marginalize local innovation if governments fail to support domestic AI development. With over 1,200 languages spoken across the region, culturally-aware, locally-developed AI systems remain essential for inclusive growth.

The concerning reality: Southeast Asia’s AI start-ups received only $1.7 billion of the $20 billion in venture investment across Asia-Pacific in 2024, representing just 122 of 1,845 AI funding deals. While Q2 2025 saw venture investment jump to $172 million (the highest in three years), the capital gap remains dramatic compared to the scale of infrastructure investment by foreign tech giants.

The Micro, Small, and Medium Enterprise Challenge

The region’s economic backbone, MSMEs that contribute 44.8% to GDP and employ 85% of the workforce, face acute challenges in the AI transition. While platforms like Grab, Sea, and Shopee are democratizing access, smaller enterprises struggle with pricing pressures and capability gaps that threaten to create a two-tier economy of AI haves and have-nots. 

Singapore’s minister for digital development and information, Josephine Teo, emphasizes the importance of leadership: “For AI to truly be transformative, leadership must drive the change. The CEO, C-suite, and board members all play a critical role.”

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The Path Forward

The McKinsey report proposes a collaborative framework across five pillars: enabling trusted data flows, strengthening infrastructure and inclusion, expanding regional talent pipelines, catalyzing sector collaborations, and promoting responsible AI at scale.

These recommendations are sensible but insufficient without confronting hard truths:

Companies must stop confusing activity with progress. Piloting 50 AI projects doesn’t create value; scaling three transformative applications does. The discipline to kill experiments and double down on winners separates leaders from laggards.

Governments must balance openness with strategic autonomy. Attracting hyperscaler investment is necessary but not sufficient. Malaysia’s and Singapore’s investments in sovereign AI infrastructure represent the right instinct, retaining local capability while benefiting from global capital.

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The talent crisis requires radical solutions. Traditional upskilling programs won’t close the gap fast enough. Singapore’s National AI Strategy 2.0 points the way, but the region needs aggressive immigration policies, stronger university-industry partnerships, and incentives for AI practitioners to relocate to Southeast Asia.

Value measurement must improve dramatically. If two-thirds of companies can’t quantify AI’s business impact, they’re measuring the wrong things. High performers obsess over outcome metrics, revenue growth, cost reduction, customer satisfaction, not deployment statistics.

A Region at the Crossroads

Southeast Asia’s AI moment is unfolding against a backdrop of genuine opportunity and legitimate concern. The fundamentals are strong: young populations comfortable with technology, competitive infrastructure investments, and healthy competition among global tech powers creating optionality for local enterprises.

But momentum without execution is just motion. The region’s 73% adoption rate means nothing if it doesn’t translate into the productivity gains, new business models, and inclusive growth that AI promises. 

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As Vivek Lath, McKinsey Partner, frames it: “Leading the AI charge in Southeast Asia requires bold, transformative ambition. It’s about moving beyond isolated use cases to fundamentally reinventing business models with AI at their core.”

The question isn’t whether Southeast Asia will adopt AI, the data shows it already is. The question is whether the region can close the gap between adoption and impact before competitors elsewhere figure out the formula first. With $4.12 trillion in GDP and 4.1% annual growth, Southeast Asia has too much at stake to settle for being fast followers who never capture the value they create.

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Global Launch Set for Late February 2026 Ahead of MWC

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Xiaomi 17

Xiaomi’s flagship Xiaomi 17 series, already a major success in China since its staggered 2025 launches, is on the verge of reaching international markets. As of February 15, 2026, reliable tipsters and leaks indicate the Xiaomi 17 (standard model) and Xiaomi 17 Ultra (premium flagship, including Leica Edition) will debut globally in late February 2026, just before the Mobile World Congress (MWC) 2026 kicks off March 2–5 in Barcelona.

Xiaomi 17
Xiaomi 17

Multiple sources, including Yogesh Brar, GSMArena, Gadgets 360, NotebookCheck, and Android Headlines, point to a European unveiling around February 28, with possible simultaneous or near-simultaneous reveals in other regions. Xiaomi has not issued an official announcement, but the consistent timeline across leaks suggests an imminent event—potentially a dedicated launch or press briefing in Europe. This early global rollout contrasts with past patterns where Xiaomi waited longer after China debuts.

China Launch Recap The Xiaomi 17 series launched in China in 2025: the standard Xiaomi 17 and Xiaomi 17 Pro (including Pro Max variant) on September 25, 2025, during founder Lei Jun’s annual speech, with availability starting September 27. The top-tier Xiaomi 17 Ultra followed on December 25, 2025, hitting shelves December 27. Powered by Qualcomm’s Snapdragon 8 Elite Gen 5 (or similar flagship chip), the lineup emphasized photography, battery endurance, and HyperOS 3 on Android 16.

The Xiaomi 17 features a compact design with a 6.36-inch LTPO AMOLED display, triple 50MP cameras, and up to 7,000mAh battery in China. The Ultra stands out with a 6.9-inch LTPO AMOLED, quad-camera setup including a 200MP periscope telephoto with continuous zoom, mechanical ring for controls, and 6,800mAh battery supporting 100W charging.

Global Rollout Timeline Leaks from early February 2026 confirm Xiaomi will bring only the Xiaomi 17 and Xiaomi 17 Ultra (Leica Edition) to global markets, skipping the Pro and Pro Max models which remain China-exclusive. Yogesh Brar reported on February 2 that the pair will launch “ahead of MWC,” with the Leica Edition Ultra targeted by February 28. GSMArena and NotebookCheck corroborated renders and specs for global variants, noting a European event likely in late February.

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India availability is expected in early March 2026, per Brar and Abhishek Yadav, aligning with past Xiaomi patterns. European pricing leaks suggest the Xiaomi 17 starts at around €999 (12GB+512GB), while the Ultra could hit €1,499 (similar config). This positions them directly against Samsung’s Galaxy S26 series (expected March 2026) and Apple’s iPhone lineup.

Key Differences for Global Models Global versions may include adjustments for regional regulations and certifications. A notable change: the Xiaomi 17’s battery could drop to about 6,330mAh (roughly 10% smaller than China’s 7,000mAh), as reported by PhoneArena on February 6. This downgrade, common for Xiaomi flagships due to battery regs or component tweaks, may slightly impact endurance but retains fast charging. Other specs like display, processor, and cameras appear consistent.

The Ultra’s global variant retains its photography focus: 50MP main + 200MP periscope + 50MP ultra-wide, Leica co-engineering, and mechanical zoom ring. Both models emphasize HyperOS 3 features, AI enhancements, and premium builds.

Why the Early Global Push? Xiaomi aims to capitalize on flagship momentum before MWC, where rivals unveil devices. Launching ahead allows hands-on demos, reviews, and pre-orders to build hype. The decision to limit global offerings to two models streamlines distribution and focuses on high-demand variants: the compact Xiaomi 17 for everyday premium users and the Ultra for photography enthusiasts.

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Specs Highlights

  • Xiaomi 17 (Global expected): 6.36-inch LTPO AMOLED, Snapdragon 8 Elite Gen 5, 12GB+ RAM options, triple 50MP cameras, ~6,330mAh battery, HyperOS 3, IP68 rating.
  • Xiaomi 17 Ultra: 6.9-inch LTPO AMOLED, same processor, up to 16GB RAM, quad cameras with 200MP periscope, 6,800mAh battery, 100W wired/50W wireless charging, Leica tuning.

Market Impact and CompetitionThe global Xiaomi 17 series enters a crowded premium segment. With aggressive pricing (under Samsung/Apple equivalents), strong cameras, and massive batteries, they challenge Galaxy S26 and iPhone 18 models. The Ultra’s Leica partnership and zoom prowess position it as a direct rival to Galaxy S Ultra and iPhone Pro Max in photography.

As MWC nears, expect official invites, teasers, or renders soon. Pre-orders could start immediately post-launch in select markets.

Xiaomi’s 17 series global debut in late February 2026 promises flagship performance at competitive prices. With leaks aligning on timing and specs, anticipation builds for what could be one of 2026’s strongest Android challengers.

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Corporate revenues jump most in six quarters on GST push

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Corporate revenues jump most in six quarters on GST push
Mumbai: Corporate revenues in the three months to December surged the most in six quarters, undergirding double-digit profit growth for India Inc for six months in a row, as the biggest goods and services tax (GST) reforms since the 2017 nationwide adoption of a uniform levy drove sales higher in sectors such as automotive, energy, metals and financials.

Buoyancy in these large-weighting sectors helped offset the one-time financial impact of India’s revamped labour codes on the $280-billion technology outsourcing and communications businesses that collectively have significant weights on the Nifty 50 – just after the financials.

2026-02-16 062321Agencies

Momentum Seen in FY27
Analysts expect India’s corporate earnings to maintain their world-leading, double-digit growth rates in FY27 too, as bespoke trade deals on either side of the Atlantic seaboard buoy New Delhi’s export prospects in two of the world’s largest consuming blocs. In the third quarter, for a common sample of 3,723 companies considered by ETIG, revenue and net profit rose 9.8% and 13.5%, respectively. The growth rates were 8.1% for revenue and 14.5% for net profit in the second quarter ended September 2025.

“Earnings growth for the companies under coverage at 16% year-on-year was in line with our estimates, largely driven by metals, oil and gas, and banking and finance sectors,” said Gautam Duggad, institutional research head, Motilal Oswal Financial Services citing that Nifty 50 companies delivered 7% profit growth.
ETIG’s aggregate sample excludes the numbers of Tata Motors PV because the company had significant exceptional gains of Rs 82,616 crore in the September quarter due to the demerger of the commercial vehicles business.
This resulted in net profit of Rs 76,248 crore, forming 15% of the sample’s profit for the second quarter, thereby skewing the base. Including Tata Motors PV numbers to the total sample, net profit growth in the December 2025 quarter drops to 11.1% and that in the previous quarter jumps to 33.7%. Revenue growth, too, falls to 8.5% and 7.7%, in that order. According to Feroze Azeez, joint CEO, Anand Rathi Wealth, broader market profit growth was better than that of the benchmark Nifty 50 companies.
Size Doesn’t Matter
“This divergence suggests that earnings traction is shifting toward mid- and small-cap companies, supported by sectoral rotation, operating leverage benefits, and relatively lower base effects,” Azeez said. The sample’s operating margin contracted 60 basis points year-on-year to 17.8%. It remained flat at 15.4% after excluding banks and finance companies, reflecting that the lending sector continued to show pressure on net interest margins (NIM), or their core profitability.

One basis point is a hundredth of a percentage point. Azeez believes that India Inc’s margin outlook appears selectively constructive, with resilience in capital-intensive and financial sectors.

“Globally linked and consumption-driven segments may experience gradual normalisation rather than sharp expansion,” he added.

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Sectorally, the performance was rather mixed. “The energy sector benefited from relatively low and stable crude oil prices, while better loan growth and stable asset quality underpinned the strength in financials,” said Antu Eapen Thomas, research analyst, Geojit Investments.

On the downside, communication services and consumer discretionary were the major laggards amid one-time provisions related to the new labour codes, Thomas said.

Better & Brighter
The outlook appears to be brighter.

Duggad believes that earnings momentum will strengthen further, supported by a low base in FY25 and improving business fundamentals. “The resolution of the India-US trade deal removes a significant overhang and positions India among the most competitive exporters relative to key emerging market peers,” he said.

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According to Geojit’s Thomas, the GST rationalisation implemented in late 2025 has supported disposable income, providing an additional boost to consumption. “Nifty 50 earnings growth is projected at 5-6% for FY26, accelerating to 12-15% in FY27,” he said. Anand Rathi’s Azeez expects a meaningful recovery in FY27 following consolidation in FY26. “In the coming quarters, opportunities are expected to emerge in sectors such as capital expenditure and infrastructure, supported by sustained government spending and a revival in private capital expenditure,” he said.

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Workers’ rights reforms prompt a third of employers to curb hiring

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According to the charity Autistica, only around 30% of working-age autistic people are in employment, and they face the largest pay gap of all disability groups.

More than a third of UK employers are planning to scale back permanent hiring as a result of the government’s new workers’ rights reforms, according to a survey by the Chartered Institute of Personnel and Development (CIPD).

The poll of 2,000 businesses found that 37 per cent intend to reduce recruitment of new permanent staff once the changes take effect, while more than half expect an increase in workplace conflict.

Employers warned that the new Employment Rights Act, which introduces expanded protections including day-one statutory sick pay, easier trade union recognition and a shorter qualification period for unfair dismissal claims, could act as a “further handbrake on job creation”.

Government estimates suggest the legislation will cost businesses around £1bn annually. However, the CIPD said the official analysis may underestimate the true impact, particularly the additional time and administrative burden placed on HR departments to implement the reforms.

Ben Willmott, head of public policy at the CIPD, said the changes risked compounding pressures already faced by employers following last year’s £24bn rise in employer national insurance contributions.

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“There is a real risk that these measures will act as a further brake on recruitment,” he said, urging ministers to consult meaningfully with business and consider compromises where appropriate.

The survey found that 55 per cent of employers anticipate more disputes once the reforms are in place. Businesses cited concerns over the reduction in the unfair dismissal qualifying period, from two years to six months, alongside new rights for zero-hours workers and enhanced powers for trade unions.

Under the act, unions will gain improved access to workplaces for recruitment and organising activity, while employees will benefit from expanded “day one” rights.

James Cockett, senior labour market economist at the CIPD, said the findings diverged sharply from government expectations. Whitehall’s impact assessment predicted that greater union engagement could reduce conflict, yet only 4 per cent of employers surveyed believed disputes would decline.

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The CIPD noted that most UK businesses, particularly the 1.4 million micro and small employers, do not formally recognise trade unions. In that context, it argued, it is unclear how expanded union rights would materially reduce workplace tensions.

The Trades Union Congress (TUC) has welcomed the reforms, describing them as the most significant upgrade to workers’ rights in a generation and arguing they will improve dignity and wellbeing at work.

Business groups, including the Confederation of British Industry (CBI) and the British Chambers of Commerce, have previously expressed reservations, particularly around guaranteed hours contracts, seasonal work and industrial action thresholds.

The CIPD warned that some elements of the legislation could have unintended consequences. Changes to unfair dismissal, statutory sick pay and zero-hours contracts may lead some employers to rely more heavily on temporary or contract labour rather than permanent hires, potentially increasing employment insecurity.

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As businesses weigh the costs of compliance against economic uncertainty, the survey suggests the government faces a delicate balancing act between strengthening worker protections and sustaining job growth.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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Letizia to face pre-Christmas trial over alleged insider trading

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Letizia to face pre-Christmas trial over alleged insider trading

Cottesloe accountant Vittorio ‘Vic’ Letizia is set for a three week pre-Christmas trial over his alleged insider trading in Genesis Minerals shares.

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Audinate Group Limited (AUDGF) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Aidan Williams
Co-Founder, CEO & Director

My name is Aidan Williams. I’m Co-Founder and CEO at Audinate. With me is Chris Rollinson, our Chief Financial Officer. In the first part of the call today, we’ll be talking through the investor presentation that accompanied our financial statements, both of which were lodged with the ASX earlier today. [Operator Instructions]

I’d like to start by recapping Audinate’s first half highlights before we move on to covering key operational and financial metrics and then look ahead for the remainder of the financial year. Later in the presentation, I’ll be briefly covering the relationship between AI, Audinate’s products and technology and the broader AV industry as a whole.

Turning to Slide 3. It’s pleasing to see 12% growth in U.S. and Australian dollar revenue over the prior period. We’ve seen strong bookings in the first half, supporting achievement of our full year FY ’26 outlook. We’ve also continued to maintain strong gross margin percentage of 82.6%, and that’s consistent, and it’s been driven by favorable product mix shift between hardware and high-margin software products.

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Operationally, we have continued to execute with strong results in key operating metrics. Design wins, that is the number of manufacturers signing up to use Dante technology for the first time, is up 8% over the prior period with 66 design wins over that period. The Dante product ecosystem continues to grow with a further 344 Dante products coming to market during the half. This brings the total of Dante-enabled products on the market to just under 5,000, and that’s coming from over 516 manufacturers. Each new design win and product coming to market is a leading indicator of

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Disney sends cease-and-desist to ByteDance over AI-generated videos

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Disney sends cease-and-desist to ByteDance over AI-generated videos


Disney sends cease-and-desist to ByteDance over AI-generated videos

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End of rate cuts, ample liquidity: Why short-end yields above 7% look attractive, says Devang Shah

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End of rate cuts, ample liquidity: Why short-end yields above 7% look attractive, says Devang Shah
With the Reserve Bank of India (RBI) widely seen at the end of its rate-cut cycle and liquidity conditions remaining comfortable, fixed income investors may need to recalibrate their strategy.

In this edition of ETMarkets Smart Talk, Devang Shah, Head of Fixed Income at Axis Mutual Fund, argues that the easy money from duration plays is largely behind us, making the short end of the yield curve far more compelling at this stage.

With 1–2 year AAA corporate bond yields available above 7% and a low probability of further rate hikes, Shah believes accrual-oriented strategies in the short to medium segment offer a better risk-reward balance than aggressive long-duration bets.

Short-term yields fall on surplus liquidity
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Bond yields are diverging, with short-term rates falling due to liquidity while long-term rates rise, signaling the end of the current rate-cut cycle. Institutions are locking in long-term funds, anticipating future rate increases, as the market prices in a potential shift to higher rates.


He also shares his outlook on the 10-year G-Sec, potential Bloomberg index-driven inflows, and how retail investors should position their debt portfolios in 2026. Edited Excerpts

Q) Did RBI policy outcome at this point in time largely meet expectations soon after the Budget?

A) By and large, the RBI policy outcome was in line with market expectations. The central bank had already taken several measures in December and January, so the absence of rate cuts or additional liquidity measures did not come as a surprise.


That said, some sections of the market were expecting incremental liquidity support, and its absence led to a modest rise in yields of around 8–10 basis points.
Q) Do you believe India is entering a structurally stronger macro phase compared to the past few years?
A) Over the last two to three years, and particularly over the past 12 months, there has been a clear and coordinated thrust on both capex and consumption growth.
Policymakers have worked in sync through GST measures, RBI monetary actions, credit impulse, liquidity infusion, and rate cuts to address growth uncertainty arising from tariffs.

With the trade deal coming through, we believe growth is well supported, and FY27 growth could be around 7%, indicating a structurally stronger macro backdrop.

Q) If we are entering a growth phase which means there is a possibility of rise in inflation. If growth accelerates meaningfully in the second half, could that change the RBI’s rate trajectory?

A) RBI typically evaluates three key parameters—inflation, growth, and the external sector—while deciding its rate trajectory. With growth support from the trade deal and reduced vulnerability for the rupee, inflation will remain the key variable to watch.

At this stage, based on high frequency indicators, it is too early to see a meaningful uptick in inflation, and unless there is significant commodity led inflation, we believe RBI is likely to remain on pause for most of calendar year 2026.

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Q) How meaningful could potential inclusion in Bloomberg indices be for Indian bonds?
A) Once Indian bonds are included in the Bloomberg Global Aggregate Index, we estimate potential foreign inflows of around $20–25 billion. This is meaningful and could translate into a 10–15 basis points rally in government bond yields.

Q) Given lower inflation and strong growth, what is your recommended duration strategy for investors today?
A) We believe a large part of the rate cycle is behind us and do not anticipate further rate cuts. RBI has also been proactive in managing liquidity.

Yields at the short end of the curve have moved up, with 1–2-year AAA assets available above 7% in an environment where the probability of rate hikes is very low. In this backdrop, we prefer the short end of the curve, with an emphasis on accrual oriented strategies.

Q) Do you think that there is room for a potential tactical entry for long bond investing this year? What conditions would signal that opportunity?

A) At this point, as we are at the end of the rate cut cycle, we advise investors to stay positioned at the short end of the curve. However, if government bonds sell off meaningfully and the 10 year G Sec moves towards 7%, or long bonds trade in the 7.60–7.70 range, that could present a tactical entry opportunity.

Until then, given the large government borrowing programme starting April, a cautious stance remains appropriate.

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Q) How should retail investors approach long-duration funds in this environment?
A) Given our base case of no further rate cuts and ample liquidity, we continue to prefer the short to medium term segment of the curve. Retail investors should consider remaining invested in short to medium duration funds rather than taking aggressive duration calls at this stage.

Q) Would you prefer sovereign bonds, SDLs, or corporate bonds in the current phase?

A) In the current phase, our preference is towards corporate bonds up to 2–3 years and SDLs in the 8–12-year segment. The large SDL supply announced has led to a meaningful widening of spreads, which offers an attractive risk reward opportunity for medium term investors.

Q) How does the higher borrowing number influence your outlook for the 10-year G-Sec?
A) While RBI is likely to remain supportive through liquidity management and periodic OMOs, the supply pipeline is quite large.

Given that we are at the end of the rate cycle, we expect the 10 year G Sec to trade in the 6.60–6.80% range till March 2026. Beyond that, if growth strengthens and inflation begins to trend higher, the 10 year yield could move into the 6.80–7% band.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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Mitsui Kinzoku shares surge to record high on strong guidance

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OncoRes raises $27m for breast cancer tool

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OncoRes raises $27m for breast cancer tool

The WA company behind an imaging device which can reduce the number of repeat surgeries for breast cancer patients has received $27 million in a private funding round to support its push to US FDA approval.

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Caravan site taken over by Ty Gwyn with plans to make it region’s ‘most sought-after’

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Fishpool Holiday Park set to reopen at end of April

New Caravans At Fishpool Holiday Park

New caravans at Fishpool Holiday Park(Image: Local Democracy Reporting Service)

A holiday firm has taken the reins at a Cheshire caravan park with plans to turn it into a major destination.

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Fishpool Farm Caravan Park in Delamare has been acquired by Ty Gwyn, which is based in North Wales.

The company has also announced plans to invest in the site and create what it said would be one of the region’s ‘most sought-after’ destinations for lodges, static caravans and touring caravans and motor homes.

The new owners have renamed it Fishpool Holiday Park and said it would reopen towards the end of April following a programme of ‘infrastructure works’ and the delivery of a mix of new ‘luxury’ lodges and caravans.

The company said it would have caravans and lodges for rent and sale, while continuing to offer facilities for tourers on a seasonal and nightly basis. Some of the lodges will be solar-enabled and there will be EV charging points.

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Work is already underway including groundworks, drainage and landscaping with the first of the new caravan stock having been delivered.

Rhodri Owen, a director of Ty Gwyn, said: “We are looking forward to welcoming new holiday makers to Fishpool Holiday Park after the completion of our programme of works which are already well underway.

“We believe that the new site will provide aspirational holiday makers and their dogs with a wonderful base for their holiday with the choice of holiday lodges and caravans and pitches for touring caravans.”

He added: “The holiday park is set in five acres, close to the pretty village of Tarporley and with Chester just a few miles further away. We are also fortunate to be on the doorstep of Delamere Forest, one of the region’s most popular leisure destinations, offering something for all ages.”

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An application had previously been lodged with Cheshire West and Chester Council to convert Fishpool Farm Caravan Park from a site which currently has touring and static caravans, along with glamping pods, into a site purely for statics.

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