Market Performance & Outlook
The Nifty concluded 2025 with a commendable 10% gain, marking its tenth consecutive year of positive returns. Experts are assessing whether this rally
can extend into 2026, a crucial question for investors. The stock market is also showing a positive trend, with the Sensex gaining 450 points, and the Nifty reaching 26,300. Furthermore, the Bank Nifty hit a fresh all-time high, driven by strong Q3 updates. The performance of key stocks, such as ITC, Vodafone Idea, and others, is under close scrutiny. Additionally, Goldman Sachs and JPMorgan expect India’s IPO boom to continue into 2026. The initial public offering (IPO) market is also a focal point, with 2026 anticipated to be a significant year. Moreover, record IPO numbers have positioned India at the forefront globally, with the primary market aiming to raise approximately Rs 4 lakh crore in 2026. ICICI Prudential AMC IPO listed at Rs 2,600 per share, reflecting a 20% premium, thereby presenting another instance of market activity.
Real Estate Dynamics
India's real estate sector is witnessing significant transformations. Premium housing sales surged by 85% in the first half of 2025, buoyed by infrastructure developments which are expected to boost the realty market. Simultaneously, India's REIT market has grown rapidly, reaching Rs 2.3 lakh crore and surpassing Hong Kong in just six years. Net office leasing in the top seven cities hit an all-time high of 55 million sq ft in 2025. Furthermore, India’s retail sector is expected to attract $3.5 billion in investments over the next three years, indicating robust growth in the commercial space. The growth in branded homes is also evident, with a 55% rise over the past five years. New projects are emerging as well, such as the ultra-premium housing project launched in Gurugram on the Dwarka Expressway, with an investment of Rs 1,500 crore. However, housing sales decreased, reaching a 17-quarter low in Q4 2025, alongside a 10% decline in supply.
Tax and Financial Updates
Several crucial tax-related deadlines and updates are drawing attention. December 31 served as the deadline for belated ITR filings, PAN-Aadhaar linking, and GST returns. The new Income Tax Act of 2025 will be implemented from April 1, with a detailed announcement on the changes. For those who filed revised ITRs, ensuring the filing was completed before December 31 was crucial to avoid potential delays in income tax refunds. A key point to remember is the importance of linking PAN with Aadhaar, with clarification on who is exempt, including NRIs, seniors, minors, and joint holders. Freelancers and gig workers are advised to focus on tax planning. Furthermore, the government has kept interest rates on small savings schemes, such as PPF and post office FDs, unchanged for Q4 FY26.
Investment Strategies
Navigating the investment landscape requires careful consideration of various options. Understanding the risks involved in different types of loans is important; the article identifies certain credit types with higher default rates. Investors are advised to evaluate the performance of mutual funds, with the year 2025 showing a diverse range of results among top performers and laggards. The article also touches upon the impact of daily versus monthly SIPs on returns. Moreover, exploring trends in gold and silver prices is crucial, as both metals have shown fluctuations. It’s also noted that India's love for gold persists, influencing wealth creation and portfolio strategies, with insights on what to expect next. Specifically, the gold price hit Rs 1.41 lakh, and silver crossed Rs 2.40 lakh.
Sectoral Developments
Various sectors are undergoing notable developments, including the banking, telecommunications, and manufacturing industries. The government is initiating discussions with the RBI and PSBs regarding potential PSU bank mergers, with expectations for more mega lenders in 2026. Vodafone Idea shares surged 10% after receiving Rs 5,836-crore relief, indicating positive developments in the telecom sector. The electronics components manufacturing sector has gained significant momentum, with the government approving 22 proposals and investments of Rs 41,863 crore. The steel sector is experiencing growth, with stocks jumping 2-4% due to safeguard duties. The FMCG sector also saw price changes, with cigarette and pan masala prices set to rise from February 1 due to a government excise hike. The IPO market remains active, with companies like Zepto filing a Draft Red Herring Prospectus (DRHP) to raise around Rs 11,000 crore.
