Real Estate Rebounds
India's real estate market showcased several key trends. The REIT market surged, surpassing Hong Kong's in just six years and hitting Rs 2.3 lakh crore.
Moreover, the retail sector is projected to attract $3.5 billion in the coming three years. Premium housing sales also increased significantly, with an 85% rise in the first half of 2025. Initiatives like the Ghaziabad mega flat sale offering discounts of up to 25% and infrastructure pushes are also playing a crucial role.
IPO Market's Outlook
The IPO market experienced a significant boom, positioning India at the global forefront. The primary market is expected to witness around Rs 4 lakh crore in 2026. Goldman Sachs and JPMorgan expect this record IPO boom to continue in 2026. The year 2026 is seen as a major test for India's primary market following the IPO frenzy of the previous year.
Financial Sector Insights
Banks demonstrated strength, with double-digit growth and falling NPAs in 2024-25, according to the RBI. Personal loan growth hit 35% in 2025, driven by small-ticket loans. In the realm of tax, the New Income Tax Act 2025 will become effective from April 1. Also, the government announced Rs 4,531-crore support for exporters.
Market & Investment Trends
The Nifty ended 2025 up 10%, marking its tenth consecutive year of gains, but it's important to understand if this rally will continue in 2026. The RBI is expected to stop using Rs 500 notes in ATMs by March 2026. The stock market saw significant movement; for example, Vodafone Idea shares surged 10% after the telco got Rs 5,836-crore relief.
Sector-Specific Analysis
The power sector is expected to recover in 2026, with Jefferies bullish on the sector. The auto sector experienced a high, with robust sales in December 2025 for passenger vehicles, two-wheelers, and CVs. AIPL launched a Rs 1,500-crore ultra-premium housing project on the Dwarka Expressway in Gurugram, while commercial assets in NCR are also attracting global capital.
Other Economic Aspects
The government is expecting India's AI push to add $1.7 trillion to the economy by 2035. The wellness housing segment in India is projected to reach $7.7 billion by 2030. Furthermore, India’s GST collection rose 6.1% YoY to Rs 1.74 lakh crore in December 2025. Also, the country overtook Japan to become the world’s fourth-largest economy, eyeing the third spot by 2030.
