India’s $5.2 trillion stock market is facing fresh headwinds after regulators moved to curb speculative activity, heightening investor concerns over subdued earnings growth and uneven foreign inflows, Bloomberg reported on Monday. The Reserve Bank of India has tightened rules on bank lending to proprietary traders and stock brokers, a measure aimed at limiting leveraged trading. ADVERTISEMENTThe combined steps risk tempering trading volumes and risk appetite at a time when investors are grappling with modest corporate profit growth, pressure on software stocks and relatively elevated valuations, according to the report. “There will be short-term impact but in the long-term, the blow-up risk goes down.”Shares of market infrastructure companies declined on Monday. The tightening is “a prudent step toward reinforcing systemic stability,” said Ajay Kejriwal, executive director at Choice International Ltd, reported Bloomberg.

Source: The Telegraph February 16, 2026 12:03 UTC