Market Overview
The Indian stock market concluded 2025 on a high note, with the Nifty posting its tenth consecutive year of gains, marking a 10% increase. The Sensex closed
its final session with a gain of 546 points. The primary market is also expected to be robust in 2026, with an estimated Rs 4 lakh crore expected through Initial Public Offerings. Goldman Sachs and JPMorgan anticipate the IPO boom to continue into 2026. However, various factors are influencing market dynamics. The rise in excise duty on cigarettes and pan masala, from February 1, is expected to impact related stocks. Additionally, the industrial output reached a two-year high of 6.7% in November 2025, fueled by manufacturing boosts and GST cuts. The RBI has also noted double-digit growth and reduced Non-Performing Assets (NPAs) for Indian banks in 2024–25.
Sectoral Insights
Several sectors are demonstrating dynamic growth. The real estate market in India is experiencing a surge, with premium housing sales up by 85% in the first half of 2025. The net office leasing in India’s top 7 cities hit an all-time high of 55 million sq ft in 2025. Furthermore, the retail sector is projected to attract $3.5 billion in investments over the next 3 years. The defense sector is also showing strong performance, with stocks like BEL, and Garden Reach, gaining up to 45% year-to-date. In contrast, IT stocks experienced a downturn due to the scrapping of the H-1B lottery in the US. The government is also providing support for exporters, with Rs 4,531 crore announced in support. Home loan rates are also playing a crucial role, with rate cuts boosting housing affordability in India in 2025.
Financial Instruments
Several financial instruments are offering investment avenues. Post Office Fixed Deposits are offering an interest rate of 7.5%, and the article provides an analysis of how Rs 1 lakh can grow in 2 years. The government has maintained the interest rates on small savings schemes, including PPF, Post Office FD, and SSY, for the fourth quarter of FY26. There is also discussion around digital gold investments, cautioning investors on unregulated digital gold. Regarding loans, India's personal loan growth reached 35% in 2025, driven by small-ticket loans. Furthermore, the article highlights that the riskiest loan in India has the highest default rate. Also, in the context of the stock market, Kotak Mahindra Bank has set January 14, 2026, as the record date for a stock split.
Taxation and Policy
The government has implemented several changes regarding taxation. The new Income Tax Act 2025 will be effective from April 1. There are deadlines for various tax-related activities, including linking PAN with Aadhaar, filing belated ITR, and GST returns, with December 31 as the key date. The income tax department is also issuing alerts about delayed refunds. For the financial year 2025-26, the deadline for revised ITR is also December 31. Additionally, the government has clarified the rules for re-employed government employees and their eligibility for gratuity under NPS. The article also provides information on the recent excise duty increase on cigarettes and pan masala.
Emerging Technologies
AI adoption is expected to significantly impact the job market in 2026. The adoption of AI is predicted to strongly impact jobs in 2026, with an expert stating that various roles would be at risk. This shift could impact employment patterns across different sectors. Moreover, there is an anticipation of how Americans are now buying homes using AI, raising questions about the feasibility of similar methods in India. Furthermore, India’s AI push is expected to add $1.7 trillion to the economy by 2035, according to the government.
Real Estate Dynamics
The real estate market shows dynamism across different regions. In Gurugram, AIPL launched a Rs 1,500-crore ultra-premium housing project on the Dwarka Expressway. Navi Mumbai is emerging as a corporate hub due to infrastructure and GCC influx. In Bengaluru, plot owners are facing challenges in selling or building on their BDA plots. There is also an analysis of housing sales, which fell to a 17-quarter low in Q4 2025, with a 10% decline in supply.
Market Fluctuations
Several market fluctuations have been observed. Silver prices fell sharply by Rs 15,000 on the last trading session of 2025 but recovered later, with an overall bullish outlook. Gold prices hit fresh all-time highs and silver surged past Rs 2.5 lakh. The article also covered the daily vs. monthly SIP returns, providing insights into investment strategies. Furthermore, the rising prices of gold and silver are making the headlines. The article also includes details about the recent decline of ITC stock to a 21-month low due to block deals and tariff rises.
IPO Market Overview
The IPO market is active, with several IPOs making headlines. KSH International IPO’s GMP remained at zero. The Shyam Dhani Industries IPO also had its allotment on the last day, with a GMP of 100%. ICICI Prudential AMC’s IPO listed at Rs 2,600 per share, at a 20% premium. Additionally, Zepto, the quick commerce firm, filed a DRHP with SEBI to raise about Rs 11,000 crore. Apollo Techno Industries IPO received 50.63x subscription on its last day. The market is also looking towards the primary market, which is expecting a significant volume in 2026 after the IPO frenzy.
