Market & Growth
India's economic landscape presents a dynamic picture, with various sectors experiencing notable activity. CBRE reported a 25% surge in capital inflows
into the real estate sector, reaching a record $14.3 billion in 2025. This, along with a 16% rise in industrial and warehousing demand, points to robust growth. Simultaneously, the digital payments sector continues its upward trajectory, with a 41% compound annual growth rate (CAGR), as digital payments hit 22,831 crore in FY25, as stated by the government. Moody's forecasts India to grow at 7.3% in FY26, and SBI Research projects that India will become an upper-middle-income country by 2030, achieving a $5-trillion economy in two years. Also, India's core industries grew by 3.7% in December 2025, with cement leading the list.
Real Estate Trends
The real estate market in India is showing signs of both expansion and transformation. Luxury housing sales reached a four-year high, indicating a shift towards high-end properties. Gurugram saw a massive influx of real estate investments, totaling Rs 86,588 crore in 2025, as RERA cleared 131 projects. Reports also suggest that office occupancy in Delhi-NCR is expected to surpass 80% by 2027. Additionally, a new order could significantly affect the possession of properties in Bengaluru. The real estate sentiment stabilized in Q4 2025, driven by office demand and a positive funding outlook.
Stock Market Dynamics
The stock market has displayed volatility, with the Sensex experiencing significant fluctuations. The market witnessed both surges and declines, with the Sensex initially gaining 800 points before shedding over 1,400 points in two days, and later, 1,065 points. Market movements impacted bank stocks, and the PSU Bank Index dropped by 1.2%. Investors were advised to remain cautious amidst the swings. HDFC Bank reported an 11.4% year-on-year increase in net profit. The stock market is also reacting to the upcoming budget.
Budget 2026 Outlook
The upcoming Budget 2026 is a focus, with several expectations and predictions shaping the economic outlook. Experts believe the government may target a fiscal deficit of 4.3% and push for medium-term debt consolidation. Discussions include potential deductions for home loans and health insurance under the new tax regime. The real estate industry is calling for tax relief and policy stability. Moreover, there is speculation on whether joint taxation for married couples will become a reality. Key reforms are expected across sectors like auto, telecom, railways, and defense, according to Morgan Stanley.
Banking and Finance
Several developments within the banking and financial sectors are noteworthy. ICICI Bank reported a 4% year-on-year decrease in net profit. However, Yes Bank saw a 55.4% year-on-year surge in net profit. Karur Vysya Bank launched a Capital Gains Account for tax relief. The Reserve Bank of India (RBI) is implementing the Integrated Ombudsman Scheme 2026, with grievance redressal set to launch from July 1. Good news for central staff with new salary accounts combining loans, insurance, and card benefits. Also, there are discussions on the potential phasing out of the old tax regime.
IPO and Investments
The IPO market is active, with significant interest in offerings such as Bharat Coking Coal. The Bharat Coking Coal IPO was oversubscribed by 43.82x, with a GMP of 46%. Avana Electrosystems IPO saw a GMP of 22%. Several railway stocks are in focus ahead of Budget 2026. Senco Gold plans to acquire a 68% stake in Melorra's parent, AJPL, for Rs 68 crore. The SEBI Chief hints at an NOC for the NSE IPO by the end of the month. Coca-Cola plans a $1 billion IPO of its Indian bottling arm, HCCB, in 2026.
Commodities and Rates
Bullion markets are experiencing notable movements. Silver prices have crossed Rs 3 lakh, with gold reaching a fresh record high. Silver ETFs jumped 8% as prices hit record levels, leading investors to consider profit-booking strategies. The white metal has hit a fresh global high. Silver and gold prices are influenced by global market trends and are showing strong performance. Rates in various cities were updated. Further, global events are impacting these trends. The rupee slid to a record low of 91.19 against the dollar.
Other Economic News
Additional economic updates encompass various sectors. Moody's sees insurance demand rising. Petrol and diesel prices were announced for January 22. The government extended the Atal Pension Yojana by five years. Discussions continue regarding government initiatives and policies impacting different industries. Several companies like Sun Pharma and IKEA are planning major investments. Also, DA hikes are being discussed for employees.
