Market’s Performance
The Nifty concluded 2025 on a positive note, marking its tenth consecutive year of gains with a 10% rise. The Sensex also experienced a similar upward
trajectory. Simultaneously, the market observed that the final session of 2025 concluded with the Sensex up by 546 points, and the Nifty surpassing 26,100 points. Several stocks, including JSW Steel, saw gains, with JSW Steel rising by 5%. This performance reflects the prevailing optimism in the market, even amidst global economic uncertainties. Furthermore, Goldman Sachs and JPMorgan anticipate the IPO boom in India to continue into 2026.
IPO Market Surge
2025 witnessed a surge in IPO activity, positioning India at the forefront globally. The primary market is projected to reach Rs 4 lakh crore in 2026, underlining substantial investor interest. Several companies, such as Zepto, are gearing up for IPOs. The quick commerce firm Zepto filed a DRHP with SEBI, aiming to raise around Rs 11,000 crore. Additionally, ICICI Prudential AMC's IPO was listed at a premium, adding to the buzz in the primary market. This influx of IPOs indicates robust confidence in the Indian market's growth potential and investment opportunities.
Taxation Updates
Taxpayers should be aware of important deadlines, with December 31 being a crucial date for several tax-related activities. This includes the deadline for belated ITR filing, PAN-Aadhaar linking, and GST returns. The New Income Tax Act of 2025 will be effective from April 1, introducing new guidelines for taxpayers. Individuals were also encouraged to file revised ITRs by December 31, 2025. Additionally, the government clarified rules regarding gratuity for re-employed government employees. These updates reflect the government's ongoing efforts to streamline and update the tax system.
Sectoral Movements
Several sectors displayed significant activity. Defence stocks, including BEL and Garden Reach, showed considerable growth, with gains up to 45% year-to-date. In the steel industry, stocks like Tata Steel and JSW Steel saw gains ranging from 2% to 4% due to safeguard duties. The banking sector also performed well, with double-digit growth and falling NPAs strengthening Indian banks in 2024–25. Moreover, the government is initiating discussions with RBI and PSBs regarding potential PSU bank mergers in 2026, indicating strategic shifts within the financial landscape.
Interest Rate Changes
Several financial institutions adjusted their interest rates. Union Bank of India reduced home, vehicle, and personal loan rates. Post Office FD offered an interest rate of 7.5%, showcasing investment opportunities for savers. These changes highlight the evolving financial environment and provide individuals with varying options to manage their finances effectively. Moreover, home loan interest rates were also subject to competitive comparisons among the top lenders during December 2025.
Market Volatility & Outlook
The market experienced fluctuations, as seen by the sharp fall in silver prices by Rs 15,000 on the final trading session of 2025. Gold prices also experienced volatility. However, the long-term outlook for silver remained bullish, according to analysts. The overall market scenario suggests a mix of opportunities and risks, indicating the need for careful financial planning and informed decision-making for investors. The article also mentioned concerns about the riskiest loan type in India, which has the highest default rate.
