Market Volatility Unpacked
The Indian stock market recently exhibited significant volatility. The Sensex experienced a decline of 604 points, marking its worst week since September
2025, with the Nifty falling below 25,700. This downturn followed a period of uncertainty, with factors like the 500% US tariff threat impacting market sentiment. Stocks such as Gokaldas Exports and Avanti Feeds saw plunges of up to 13%. Market experts attribute the decline to these and other global pressures, cautioning investors to stay informed. A contributing factor was the falling silver prices, which plummeted by Rs 10,000 in a single day.
IPOs and Market Activity
Several Initial Public Offerings (IPOs) have recently garnered significant attention. The Modern Diagnostic IPO concluded on its final day, witnessing a rise in GMP (Grey Market Premium). The issue received an overwhelming 376.90x subscription on day 3. Similarly, the Bharat Coking Coal IPO opened with a fully subscribed status within an hour, even though the GMP decreased. The Gabion Technologies IPO also saw high interest, with an 826x subscription rate. Furthermore, the E to E Transportation Infra IPO listed on the NSE SME platform at a 90% premium, reflecting strong investor confidence.
Government Schemes Explained
Several government schemes offer substantial financial benefits. There are at least 6 schemes that provide coverage worth lakhs, requiring annual premiums of less than Rs 100. This highlights the government's commitment to social security and affordable financial solutions. Information and updates of these schemes are consistently made available to the public.
Banking and Finance News
The Reserve Bank of India (RBI) is in the news, particularly for the special ink used in printing the Mahatma Gandhi image on currency notes. Banks across India are also in the spotlight. Several bank holidays were observed or announced, impacting various financial activities. For example, banks were closed between January 5-12. Additionally, BOI Mutual Fund launched a Banking & Financial Services Fund. Furthermore, ICICI Bank announced credit card rule changes, effective January 15.
Real Estate Sector Insights
India's real estate market continues to evolve. Recent reports indicate that the REIT (Real Estate Investment Trust) market in India has reached Rs 2.3 lakh crore, surpassing Hong Kong in just six years. Moreover, a report also found that India's net office leasing in top 7 cities hit an all-time high of 55 million sq ft in 2025. This shows growth in the housing sector and a shift towards premium, branded homes. Overall, the retail boom is projected to attract $3.5 billion in investments over the next 3 years.
Tax and Financial Planning
Several tax-related deadlines and opportunities are worth noting. The December 31 deadline for linking PAN with Aadhaar and filing belated ITR (Income Tax Return) and GST returns have passed. The deadline for filing ITR for AY26 was extended to December 31. This provides more time to file revised and updated returns. There are also insights into the new income tax law, set to roll out from April 2026. ICICI Bank launched the Capital Gains Account Scheme to help taxpayers. Also, the government will announce the Union Budget 2026.
Loan and Investment Insights
Recent data has revealed that India's personal loan growth has hit 35% in 2025, primarily fueled by small-ticket loans. There's also information available on various investment avenues, including Step-Up SIPs (Systematic Investment Plans), which can potentially double retirement savings. Gold ETFs have seen record inflows of $1.25 billion in December. The rise in gold prices are also making headlines and could prove to be an alternative investment option.
Economic Indicators and Forecasts
India's GDP (Gross Domestic Product) is projected to grow at 6.9% in FY27, owing to government reform measures. Dun & Bradstreet has estimated that India's economy is set to experience new growth engines beyond stability, with a projected growth of 6.6% in FY27. Furthermore, crude oil prices are predicted to fall to $50 a barrel by June 2026, which is expected to benefit inflation and the rupee.
Sector-Specific Highlights
The excise duty on cigarettes and pan masala is set to increase from February 1. The housing market faces challenges, with sales dropping to a 17-quarter low in Q4 2025, accompanied by a 10% decline in supply. The focus on AI is increasing; LinkedIn highlighted the 25 fastest-growing jobs in India for 2026. The government continues to have discussions and hold meetings to discuss and address the challenges being faced by AI startups in India.
