Growth & Production
India's industrial production in December surged to a two-year high of 7.8%, indicating robust economic activity. Furthermore, India has maintained its
position as the fastest-growing major economy, defying the global slowdown. These positive indicators highlight the country's resilience and strong growth trajectory.
India-EU Trade Deal
The India-EU Free Trade Agreement is poised to boost the competitiveness of Indian exports within the European Union market. Experts are recommending specific stocks for long-term investment, with the deal expected to reduce tariffs on over 90% of goods, including items such as wine and chocolate. EU firms are also optimistic about India's growth potential, seeing the deal as a catalyst for expansion.
Budget 2026 Anticipation
The upcoming Budget 2026 is scheduled to be tabled on Thursday. Expectations are high, with industry leaders urging the government to double infrastructure spending to Rs 3 lakh crore. Tax experts are seeking higher deductions, relief on the 30% tax slab, and clarity on capital gains. Focus areas will likely include tax cuts, customs overhauls, and measures to promote export growth. There is discussion about the potential for joint tax filing for married couples and how the new tax regime could be made more appealing.
Real Estate Outlook
The real estate market shows signs of stabilization, with real estate sentiment stabilizing in Q4 2025 due to strong office demand and a positive funding outlook. Luxury housing sales have reached a four-year high, while tier 2 cities are emerging as new luxury property hubs. In Bengaluru, open spaces on balconies have now come at a higher cost for homebuyers. Reports also indicate rising housing sales in major cities like Bengaluru, Hyderabad, and Chennai, which jumped by 15% in 2025.
Banking Sector Insights
HDFC Bank reported an 11.4% year-on-year increase in net profit to Rs 18,653.75 crore, and its Net Interest Income (NII) grew by 6.4%. Yes Bank saw its net profit surge by 55.4% year-on-year to Rs 952 crore. Axis Bank experienced a profit uptick, with its shares jumping by 4%. The RBI is also launching the Integrated Ombudsman Scheme 2026, with grievance redressal going live from July 1.
Investment Strategies
With gold prices at record highs, SGB investors face a dilemma of whether to sell or hold after 200% gains. Experts are also discussing the benefits of investing in National Savings Certificates (NSC), Fixed Deposits (FD), or Mutual Funds, and how to maximize returns over five years. Recent data showed India's Forex reserves jumped by $14 billion to reach $700 billion, further underlining the country's economic strength. The article also provides guidance on navigating delays in Income Tax refunds.
IPO Market Updates
Bharat Coking Coal's IPO saw strong interest, with a GMP (Grey Market Premium) surging ahead of listing. Shadowfax Technologies IPO's GMP is also showing upward movement before launch, and the issue received considerable subscription. Coca-Cola is planning a $1 billion IPO of its Indian bottling arm, HCCB, in 2026.
RBI and Policy
The Reserve Bank of India (RBI) is setting up an expert panel to revamp the NPS (National Pension System) investment framework. The RBI is also launching the Integrated Ombudsman Scheme 2026, with grievance redressal to go live from July 1. US Ambassador Sergio Gor met with RBI Governor Sanjay Malhotra to discuss areas of cooperation.
