Budget 2026 Preview
The upcoming Union Budget 2026, slated to be presented on February 1st, is generating significant expectations. Industry leaders are urging for an increase
in infrastructure spending, aiming for a figure of Rs 3 lakh crore. Experts are also hoping for tax relief measures, including higher deductions and adjustments to the 30% tax slab, aiming to make the new tax regime more attractive. The budget process and its key aspects are under scrutiny, with experts and taxpayers alike anticipating shifts in tax policies and potential revisions to the old tax regime, which could influence home loan and health insurance deductions. Furthermore, the Economic Survey 2026, which will be tabled on Thursday, is also keenly awaited.
Market Reactions & Trends
The Indian stock market has shown volatility, with the Sensex experiencing fluctuations, ultimately closing higher. The oil and gas sector saw a surge, and the Nifty neared the 25,350 mark. Corporate results, such as those from HDFC Bank, ICICI Bank, and Yes Bank, were released, impacting market dynamics. Banking sector performances were mixed, with some showing profit increases while others experienced declines. Silver and gold prices were also affected, with record highs witnessed in the bullion market. Market analysts continue to recommend long-term investments in certain stocks, particularly those related to the India-EU trade deal. The performance of several IPOs, including Bharat Coking Coal and Shadowfax Technologies, have been closely monitored, with grey market premiums indicating investor sentiment.
Banking Sector Insights
Several major banks have unveiled their quarterly results, offering insights into their financial health. HDFC Bank reported a net profit increase of 11.4% year-over-year to Rs 18,653.75 crore, and a 6.4% rise in Net Interest Income (NII). ICICI Bank's net profit dipped 4% year-over-year, reaching Rs 11,317.86 crore. PNB saw a rise in net profit, growing 11.6% year-over-year to Rs 5,189.8 crore. Yes Bank experienced a surge in net profit, with a 55.4% year-over-year increase, reaching Rs 952 crore, and a 10.9% rise in NII. These results offer a view of the current landscape of the banking sector.
Real Estate Dynamics
The real estate market shows several trends. In 2025, housing sales in cities such as Bengaluru, Hyderabad, and Chennai saw a 15% increase. There's a noticeable shift, with luxury housing sales reaching a 4-year high. Meanwhile, the sector is also experiencing challenges, as indicated by reports on the 'Death of the 3BHK Dream'. The increasing costs in specific locations, like Bengaluru, have led to citywide discussions. Recent reports indicate the stabilization of real estate sentiment in Q4 2025, supported by office demand and funding prospects. Moreover, the planning of a new KHB township near Kengeri and the legal disputes related to projects such as the Grand Venice Project in Greater Noida further paint a comprehensive picture of the real estate sector.
Trade Deal Implications
The India-EU Free Trade Agreement is poised to boost the competitiveness of Indian exports within the EU market, according to the Confederation of Indian Industry (CII). The deal is expected to cut tariffs on over 90% of goods. Experts recommend specific stocks for long-term investment, expecting increased trading opportunities. Moreover, EU firms express optimism about India's growth and anticipate the trade agreement to boost their expansion in the country. This trade deal could substantially influence the Indian market by making certain products cheaper, providing new prospects for Indian exporters.
IPO and Market Activity
The IPO market is active, with significant developments involving companies like Shadowfax Technologies and Bharat Coking Coal. The Grey Market Premium (GMP) for these IPOs has shown fluctuations, reflecting market sentiment. SEBI's approval of the NSE IPO is expected soon. The recent Bharat Coking Coal IPO received strong subscription levels, and its listing is highly anticipated. Furthermore, the PhonePe IPO is in progress, with Walmart planning to decrease its stake and Microsoft and Tiger Global preparing to exit. The fluctuations in GMPs of recent IPOs indicate market enthusiasm and investment trends.
Tax and Financial Updates
Several tax-related updates are relevant. New income tax rules will take effect on April 1st. Taxpayers are advised to understand the processes for claiming refunds, as well as addressing any potential delays. Financial experts offer advice regarding Sukanya Samriddhi Yojana, an 11-year milestone. Furthermore, changes are expected in the upcoming Union Budget 2026, which may see alterations in tax regimes, including the possibility of joint taxation for married couples and changes that could affect home loan and health insurance deductions.
