Market Performance Snapshot
Recent data reveals a mixed picture of India's economic performance. D-Mart reported a 13% rise in revenue, reaching Rs 17,612 crore in the December quarter.
Bank loans at Bandhan Bank grew by 10% during the same quarter. Sales at Sobha Ltd. jumped by 52%, driven by increasing housing demand. JNPA container traffic increased by 12.64% in 2025, showing growth in the trade sector. However, the stock market saw foreign portfolio investors (FPIs) withdraw Rs 7,608 crore from equities in January, reflecting some investor caution. Furthermore, the top 10 firms experienced a combined gain of Rs 1.23 lakh crore. Market movements have also been affected by US data and geopolitical events, as reflected in gold and silver price swings, and the impact of the US-Venezuela conflict on India's trade analyzed by GTRI.
Government Policy Impacts
Government policies continue to play a crucial role in shaping the Indian economic landscape. The government is focusing on balanced fertilizer use to prevent misuse. The CBDT is preparing for the transition to the new Income Tax Act of 2026. The government has also urged states to speed up the spending on farm schemes. The Ministry of Power reviewed hydro projects in Jammu & Kashmir. Himachal Pradesh is set to unveil a new industrial policy, indicating the state’s focus on attracting investments. Additionally, Rajasthan is emphasizing its IT and innovation hub with investor-friendly policies. The impending Budget of 2027 is expected to see a 10% increase in capital expenditure (capex), as projected by the L&T CFO.
Sector-Specific Highlights
Several sectors are demonstrating substantial activity and potential. The banking sector saw Bank of Baroda achieve a 15% loan growth in Q3. The insurance sector is under scrutiny, with the Irdai raising concerns about mis-selling practices and releasing a report on the same. The real estate sector is vibrant, with unsold homes rising in the top 7 cities according to an Anarock report. The renewable energy sector is expanding, as KPI Green Energy is developing a 92-MW hybrid power project in Gujarat, while Goldi Solar plans to increase its capacity to 21 GW by FY28. The tea industry is maintaining quality control, with the Tea Board set to test 100% of imports. Meanwhile, India has become the world's largest rice producer, surpassing China.
Investment & Corporate News
Several companies and firms have been making significant moves. Eight firms have received Sebi's nod for IPOs, including RKCPL and Chartered Speed. CIEL HR raised Rs 30 crore pre-IPO. BCCL's IPO opened on January 9. Several companies have also shown growth, including Marico, which expects high revenue growth in Q3. ONGC is running a CCS pilot project, storing CO2 in Gujarat wells, reflecting its focus on sustainability. Furthermore, AM International is targeting a FY27 milestone, spearheaded by Ashwin Muthiah. The successful validation flight at Bhogapuram Airport is another positive development, while Sindhudurg Airport received 24x7 DGCA approval. LIC launched a revival campaign to reactivate lapsed policies, highlighting efforts to boost its business. Onextel secured a NICSI messaging deal, targeting Rs 125 crore in revenue.
Technological & Trade Insights
Technological advancements and international trade are critical factors shaping the Indian economy. India is set to become the top chip producer by 2035, with four firms starting operations in 2026. Efforts are underway to trace and recycle EV batteries through an Aadhaar-based system. AYUSH recognition is being pursued in India's trade pacts. The country is also making progress in acquiring and recycling critical minerals. The US's control of Venezuelan oil presents a $1 billion opportunity for India. Discussions are ongoing between India and the EU regarding trade, with Goyal visiting Brussels. Additionally, the impact of gig work is significant, as seen by Deepinder Goyal's insights, and the proposed 90-day threshold for gig worker social security.
