Real Estate Dynamics
The real estate market in India is experiencing notable changes, with a significant rise in branded homes. Over the past five years, there has been a 55%
surge in the popularity of branded homes across the country. Simultaneously, the Delhi-NCR region saw a 39% quarter-on-quarter increase in housing launches in the fourth quarter of 2025, with mid-segment properties leading the supply. This indicates a strong demand for housing, especially in key areas. Furthermore, a new flat scheme is anticipated in an NCR city after Makar Sankranti, potentially offering relief to homebuyers. Additionally, the real estate industry is calling for tax relief and stable policies in the upcoming Budget 2026. Buyer sentiment in some areas has been affected, as seen in Pune, where a 3BHK unit, initially priced at Rs 1.80 crore, is projected to hit Rs 2.15 crore the following month.
Market Volatility and Trends
The stock market has displayed fluctuations, with the Sensex experiencing a volatile session. The Sensex ended 250 points lower, and the Nifty fell below 25,750. Over a six-day period, the market lost Rs 18.5 lakh crore, with the Sensex down 2,700 points and the Nifty falling by 3%. However, after Sergio Gor's remarks, the Bank Nifty rebounded by 650 points from its daily low, reclaiming the 59,500 mark. Inflows into midcap and smallcap stocks reached record levels in 2025, despite muted scheme returns. Additionally, FIIs pulled out over Rs 11,700 crore in January, signaling shifts in investor behavior. Meanwhile, the NSE IPO neared regulatory clearance, with the SEBI chief indicating that the NOC was likely within the month.
Budget 2026 Insights
The upcoming Budget 2026 is a focus of attention, with significant expectations within the financial sector. The Union Finance Minister, Nirmala Sitharaman, is scheduled to present the budget at 11 AM on February 1. The real estate industry is particularly looking forward to tax relief and stable policies. The CII suggests a phased privatization roadmap for public sector enterprises within the budget. Additionally, the budget may introduce joint tax filing for married couples, simplifying tax processes. The government is also set to hike excise duties on items like cigarettes and pan masala from February 1, after a seven-year freeze, impacting consumer spending. Expectations from the budget include clarity on tax provisions and faster dispute resolution to facilitate business operations.
Banking Sector Updates
The banking sector is undergoing changes, with several updates impacting consumers. Banks are expected to remain closed for multiple days from January 14-18, as per the state-wise list released. Some banks are implementing changes to their services, such as HDFC Bank, which has altered debit card lounge access rules, effective from January 10. Moreover, double-digit growth and falling NPAs are strengthening Indian banks during 2024-25, as revealed by the RBI. Several banks are introducing new schemes and services. For instance, Karur Vysya Bank launched a Capital Gains Account for tax relief, and ICICI Bank launched a similar scheme to aid taxpayers in claiming exemptions and earning interest. Furthermore, IDFC First Bank decreased interest rates on savings accounts by 200 bps, impacting savings returns.
Investment Avenues
Investment options are expanding, with emerging opportunities for investors. A Wealth Company launched a Gold ETF Fund of Fund for 2026 investors. There's also the option of gifting mutual fund units to children without incurring capital gains tax. Gold and silver prices reached record highs. The article also presents a list of small savings schemes and their interest rates. Simultaneously, the market is offering a chance for those looking for safe returns. Additionally, the article discusses the potential of copper as an investment, alongside established options like gold and silver. The REIT market value is expected to rise to $25 billion by 2030, which could interest real estate investors. Investors are also watching the IPO markets, with Bharat Coking Coal and Gabion Technologies IPOs opening during this period.
Digital Payments and Tax
Digital payments are significantly impacting the financial landscape. The DIGIDHAN Mission saw a 41% CAGR, with digital payments reaching Rs 22,831 crore in FY25, according to government data. The rise in digital transactions shows the increasing adoption of digital financial tools. On the tax front, significant changes are coming for taxpayers, with a new income tax law set to roll out from April 2026. This includes streamlining of provisions, affecting how income tax is calculated and filed. The Income Tax Department is also focusing on simplifying processes and clarifying provisions, including the reasons for refund delays and how to check the status. The deadline for filing updated and revised returns was December 31, with 22.4 lakh updated returns and 26 lakh revised returns filed by then.
