Market Volatility Explained
The stock market experienced a period of volatility, with the Sensex declining over 1,400 points within just two days, and the Nifty 50 falling below 25,200.
This downturn was driven by several factors. Wipro shares saw a significant drop of 9% following the release of their Q3 results, leading to downgrades from Morgan Stanley and concerns about margin risks. ICICI Bank and HDFC Bank shares also experienced profit booking after their Q3 results were announced. The decline in the Bank Nifty for the second consecutive day added to the overall negative sentiment in the market. Investors were advised to carefully analyze these trends and make informed decisions based on expert advice.
Budget 2026 Insights
The upcoming Budget 2026 is a focus for many, with experts offering their expectations. Discussions revolve around the potential phasing out of the old tax regime, and the clarity of tax policies is a key expectation for facilitating business operations. There's anticipation surrounding the possibility of joint tax filing for married couples and the efforts to make the new tax regime more appealing. The real estate industry is calling for tax relief and the stability of policies to aid the sector's growth. Morgan Stanley identified key reforms needed across sectors like auto, telecom, railways, and defense.
Silver's Price Surge
Silver prices have been on the rise, hitting record highs. Hindustan Zinc shares saw a 2% increase as silver prices reached a new benchmark of Rs 3 lakh per kg. Experts are analyzing the factors behind the soaring prices and how investors can best navigate this trend. Silver ETFs jumped by 8% as prices hit record levels, leading to questions about whether investors should book profits or stay invested. The ongoing rise in silver prices also impacted overall market sentiment and investor confidence.
Real Estate Dynamics
India's real estate sector is witnessing significant activity and changing trends. Capital inflows into the sector surged by 25% in 2025, reaching a record $14.3 billion. Real estate sentiment stabilized in Q4 2025, supported by office demand and positive funding outlook. In Delhi-NCR, office occupancy is expected to exceed 80% by 2027. Gurugram saw a substantial Rs 86,588 crore in real estate investments in 2025. These indicators point to a robust and expanding real estate market across the country.
Banking Sector Overview
The banking sector experienced both challenges and successes. Yes Bank's Q3 results showed a net profit surge of 55.4% year-over-year, reaching Rs 952 crore, with net interest income also increasing. HDFC Bank reported a net profit increase of 11.4% year-over-year to Rs 18,653.75 crore. Meanwhile, PNB's net profit rose by 11.6% year-over-year to Rs 5,189.8 crore. Banks faced potential closures for up to four days as employees considered a strike to demand a five-day work week. Karur Vysya Bank launched a capital gains account for tax relief, offering new options for investors.
IPO Market Updates
The IPO market continued to draw attention. The Bharat Coking Coal IPO was oversubscribed, with a grey market premium (GMP) indicating over 50% gains and saw strong interest on its opening day. Avana Electrosystems IPO had a GMP of 27.3% before the launch, showing good traction in the market. The NSE IPO neared regulatory clearance, with Sebi's chief suggesting an NOC may come by the end of the month. The performance and subscription statuses of these IPOs were closely watched by investors.
Income Tax Updates
The Income Tax Department has been in focus due to ITR refund delays. Taxpayers were advised on how to check their refund status and what actions to take if delays occurred. The government's digital payments initiative, DIGIDHAN Mission, showed substantial growth, with a 41% compound annual growth rate as digital payments reached 22,831 crore in fiscal year 2025. Additionally, the new income tax provisions are slated to take effect from April 1 to streamline processes, aiming to create a more efficient system.
Key Sectoral Highlights
Several sectors showed notable developments. India's core industries grew by 3.7% in December 2025, with cement leading the list. Coca-Cola planned a $1 billion IPO for its Indian bottling arm, HCCB, scheduled for 2026. India's appeal to global CEOs as an investment destination doubled, according to PwC. The government introduced a new salary account for government staff offering benefits such as free insurance of up to Rs 2 crore, cheaper loans, and zero-balance accounts. These varied activities indicate growth across many industries.
