IPO Market Dynamics
India's primary market is poised for a significant year, with an estimated Rs 4 lakh crore in 2026. Sanjeev Bikhchandani has highlighted India's potential
as a strong global IPO hub for startups. The Bharat Coking Coal IPO opened on January 9, and the Modern Diagnostic IPO saw strong interest, with both issues receiving substantial subscriptions. Several IPOs are currently active, attracting considerable investor attention. For instance, the Gabion Technologies IPO witnessed an impressive subscription rate, exceeding 200 times. E to E Transportation Infra IPO also performed well. These IPOs reflect the robust interest in the Indian market.
Economic Growth Outlook
Multiple forecasts point towards a strong growth trajectory for the Indian economy. India's GDP is estimated to grow by 7.4% in FY2025-26, despite global challenges, according to government estimates. India Ratings projects a 6.9% GDP growth in FY27, driven by government reform measures. Dun & Bradstreet anticipates that the Indian economy is set for new growth engines beyond stability, predicting a 6.6% growth in FY27. These figures indicate a positive outlook for the Indian economy, supported by various policy initiatives and economic reforms.
Sectoral Performance Review
Certain sectors within the Indian market have shown notable performance, while others faced challenges. IT stocks experienced a decline of up to 3% after Infosys raised entry-level salaries, according to reports. The real estate sector, on the other hand, is experiencing a boom, with India's retail sector expected to attract $3.5 billion in the next 3 years. The shift towards premium and branded homes is also noticeable. In the financial sector, Indian Gold ETFs saw record-high monthly inflows of $1.25 billion in December. The market’s performance is diverse, with varying levels of growth and challenges across different segments.
Regulatory & Policy Updates
Several regulatory and policy changes are impacting the Indian market. The Union Budget 2026 date is set for a Sunday, according to sources. The new income tax law is scheduled to roll out from April 2026, which will bring changes for taxpayers. Furthermore, the MCA extended the FY25 annual filings deadline to January 31 without late fees. The government's initiatives and legislative decisions significantly influence the market's trajectory. The tax implications of new policies, along with critical dates, must be considered by investors and businesses to make informed decisions.
Investment Strategies & Trends
Investors are embracing different strategies and trends to maximize returns. Karur Vysya Bank launched a Capital Gains Account for tax relief. The increasing use of AI in home buying is also becoming apparent. The focus on branded homes and a surge in gold ETF investments indicate shifts in investment preferences. Moreover, experts are discussing the role of AIFs in NPS, and understanding how to deal with income tax refunds. These developments highlight the evolving landscape of investment strategies and the importance of adapting to new trends and options.
