Market Movements
The Indian financial markets have recently shown significant activity, particularly in precious metals. Silver ETFs experienced a surge, with gains reaching
up to 10%, while gold ETFs also saw increases, rising over 3%, driven by record bullion prices. Simultaneously, gold prices in India reached new highs, with 22K and 24K rates climbing. Silver also hit the Rs 4 lakh mark for the first time in India, reflecting strong market demand. This surge coincided with a volatile session in the Sensex, which ended 320 points higher, and the Nifty, which stayed above 25,150. These movements suggest a dynamic market environment influenced by global prices and investor sentiment.
Budget 2026 Outlook
Expectations are high for the Union Budget 2026, which will be tabled on February 1st. Experts predict potential changes to the new tax regime, including possible home loan and health insurance deductions. There is speculation that the old tax regime may be phased out. Financial analysts are also anticipating tax clarity and faster dispute resolution. Moreover, discussions are underway about joint tax filing for married couples. Budget discussions are expected to bring clarity on various tax aspects, and will focus on tax cuts, customs overhauls, and export growth. The Union Budget 2026 will be presented by Finance Minister Nirmala Sitharaman, representing her ninth budget.
Trade Deal Impact
The India-EU Free Trade Agreement (FTA) is poised to boost the competitiveness of Indian exports within the European Union market. This trade deal is anticipated to lead to lower tariffs on more than 90% of goods. Items such as cars, wine, and chocolate are expected to become cheaper for Indian consumers. EU firms are optimistic about growth in India, expecting the FTA to unlock a new phase of expansion. The agreement is also expected to benefit specific regions, such as Andhra Pradesh and Telangana, enhancing their trade prospects.
Banking and Finance
The financial sector showed noteworthy developments, with PNB reporting a 11.6% year-over-year rise in net profit, reaching Rs 5,189.8 crore. Yes Bank's net profit surged 55.4% YoY to Rs 952 crore. HDFC Bank saw a net profit increase of 11.4% YoY to Rs 18,653.75 crore. The RBI is also launching an Integrated Ombudsman Scheme 2026, with grievance redressal going live from July 1. Employees from various banks are also demanding a five-day workweek, potentially leading to a four-day shutdown. Banks may also face issues like refund delays, which require specific steps to resolve. Other updates in this domain include the setting up of an expert panel by the PFRDA to revamp the NPS investment framework.
Investment Strategies
Various investment opportunities are also being actively discussed. The performance of Sukanya Samriddhi Yojana (SSY) is under scrutiny, highlighting its returns. The current gold market is creating a dilemma for SGB investors, who must decide whether to sell or hold their assets, especially after seeing 200% gains. Discussions are ongoing regarding the most profitable investment options, such as National Savings Certificates (NSC), Fixed Deposits (FD), or mutual funds, and their growth potential over five years. Experts suggest focusing on tax-efficient investments and analyzing the difference between PF and EPS when planning for retirement.
IPO and Market News
The IPO market is currently active. The Bharat Coking Coal IPO is showing strong interest, with high subscription rates, as is Avana Electrosystems IPO. Shadowfax Technologies is preparing for its IPO, with grey market premiums (GMP) rising. Updates on the IPO listing date and allotment status are being closely followed. Several companies, including Coca-Cola, are planning IPOs in the near future. Additionally, there are discussions on potential stock market investments, including recommendations by experts for long-term investments in the India-EU trade deal context. Overall market trends include a positive outlook, with the Sensex and Nifty showing growth.
