IPO Market's Boom
India's primary market experienced an unprecedented IPO frenzy. Record IPO numbers propelled India to the top globally. With experts anticipating a staggering
Rs 4 lakh crore in 2026, Goldman Sachs and JPMorgan expect this trend to continue. Several companies like Zepto have filed for IPOs. ICICI Prudential AMC's IPO listed at Rs 2,600 per share, showcasing the market's robust investor interest. The success of the IPO market is reshaping the financial landscape, making it a pivotal area to watch in the coming year. This surge in IPOs reflects not only the growth of various sectors but also the increasing investor confidence in the Indian economy's potential.
Real Estate Dynamics
The real estate sector in India is undergoing substantial growth, with premium housing sales surging by 85% in the first half of 2025. Infrastructure developments are further boosting the demand for real estate. India's REIT market has also reached a substantial Rs 2.3 lakh crore, surpassing Hong Kong in just six years. Moreover, a report indicates that the retail boom in India is expected to attract $3.5 billion in investments over the next three years. This surge underscores the sector's resilience and its crucial role in the overall economic expansion. The trend highlights the positive sentiment and the strong potential for returns in the real estate market.
Banking and Finance
In 2025, India witnessed a 35% surge in personal loan growth, largely driven by small-ticket loans. Furthermore, Indian banks have shown resilience, marked by double-digit growth and falling non-performing assets (NPAs) during 2024-25. Some banks, such as Union Bank of India, have reduced home, vehicle, and personal loan rates. With the implementation of the new income tax act effective from April 1, 2025, freelancers and gig workers need to prepare for essential tax planning. The RBI's actions, such as postponing Phase 2 of the Continuous Clearing System, influence the banking operations. Banks are also initiating discussions with the RBI and PSBs regarding potential mergers in 2026.
Market Outlook and Stocks
The Nifty ended 2025 up 10%, marking its tenth consecutive year of gains, and the question remains whether the rally will continue in 2026. The Sensex closed its final session of 2025 with an increase of 546 points, while the Nifty closed above 26,100. Motilal Oswal has named 10 long-term stock picks for 2026, showing the focus on long-term investment strategies. Several stocks, including defense stocks, have shown impressive growth, with some zooming up to 45% YTD. Moreover, the performance of the stock market and various sectors indicates the overall health and growth trajectory of the Indian economy.
Sector-Specific Highlights
In November 2025, industrial output reached a two-year high of 6.7%, driven by a boost in manufacturing and GST cuts. The government has announced Rs 4,531-crore support for exporters. The wellness housing segment in India is expected to reach $7.7 billion by 2030, highlighting the growing focus on health and well-being. Additionally, the retail sector is witnessing a boom, attracting substantial investment, and the real estate sector is experiencing growth due to infrastructure development. These sector-specific trends reflect the diverse nature of India's economic growth, driven by manufacturing, exports, healthcare, and retail.
Taxation and Regulations
The government announced the new income tax act effective from April 1, 2025, to bring changes in the taxation system. The deadline for PAN-Aadhaar linking was December 31. The focus on tax planning for freelancers and gig workers highlighted upcoming shifts in tax regulations. Moreover, excise duties on cigarettes and other tobacco products are set to increase from February 1, influencing consumer behavior. With the new tax year approaching, taxpayers must keep themselves updated on essential tax planning and the upcoming changes in the regulations. The government is also working towards streamlining and simplifying various tax procedures.
