Budget 2026 Preview
The 2026 Union Budget is on the horizon, with several key expectations being voiced by industry experts. A primary focus is likely to be on tax-related
adjustments, with discussions centered on potential higher deductions and relief within the 30% tax slab. Experts are also advocating for tax clarity and a more efficient dispute resolution process to enhance the ease of doing business. There's anticipation that the new tax regime could incorporate home loan and health insurance deductions to make it more attractive to taxpayers. The government's fiscal approach will be crucial, potentially influencing the economic landscape and providing some relief for taxpayers.
Infrastructure Focus
Industry leaders are urging the government to double infrastructure spending, aiming to reach Rs 3 lakh crore. This emphasis underlines the need for extensive investments in infrastructure. This increased spending is viewed as critical for fostering economic growth and bolstering various sectors, including real estate and manufacturing. The government’s commitment to infrastructure development is a key area of focus for the 2026 budget. This proactive approach aims to stimulate broader economic expansion.
Trade Deal Impact
The India-EU Free Trade Agreement (FTA) is poised to bring significant changes, potentially reducing costs for Indians across various sectors, from cars to olive oil. The FTA’s scope is broad, expected to encompass all sectors, leading to tariff reductions and improved market access for Indian businesses. This agreement is anticipated to be a catalyst for economic growth. The FTA is seen as a strategic move to strengthen India's global trade relations and boost its economic competitiveness.
Real Estate Trends
Luxury housing sales have reached a 4-year high, reflecting a preference for high-end properties among Indian buyers. Tier 2 cities are emerging as new luxury property hubs, indicating a shift in real estate dynamics. The sentiment within the real estate market is stabilizing, with the office demand and funding outlook contributing to confidence. Reports indicate a 15% jump in housing sales in Bengaluru, Hyderabad, and Chennai in 2025, demonstrating strong market activity.
Precious Metals Surge
Gold and silver prices have recently hit fresh highs in India. Silver has crossed the Rs 4 lakh mark, and gold prices also continue to surge, influencing investor decisions. Experts are debating whether to sell or hold their gold investments, particularly those who have seen gains of 200%. The rising prices of gold and silver are reflecting global trends and influencing investment strategies in the current financial climate. The movement in prices suggests a shift in investor sentiment, reflecting concerns about inflation and economic uncertainty.
IPO Market Activity
The IPO market is experiencing activity with the Shadowfax Technologies IPO, and Bharat Coking Coal IPO. SEBI's IPO nod and the activity in the Grey Market Premium (GMP) for several IPOs, including Avana Electrosystems, indicate an active environment. The GMP for Bharat Coking Coal surged ahead of its listing, suggesting significant investor interest. These developments reflect a dynamic market, with investors closely watching the performance of new listings and their potential for gains.
Banking Sector Update
ICICI Bank's Q3 results showed a 4% YoY decline in net profit, while PNB's net profit rose 11.6% YoY. Yes Bank's Q3 results saw a 55.4% YoY surge in net profit. Bank employees have called for strikes demanding a five-day work week, which may lead to bank closures for four days. The results and the potential strike actions highlight the changing financial landscape. These developments reveal evolving trends. The banking sector’s performance and the implications of potential industrial action are key factors to watch.
