Banking Sector Overview
The Indian banking sector displayed robust performance. The Reserve Bank of India (RBI) reported that stronger fundamentals, evidenced by a double-digit
growth rate and declining Non-Performing Assets (NPAs), strengthened Indian banks during 2024–25. Moreover, HDFC Bank adjusted its debit card lounge access rules, effective from January 11. Karur Vysya Bank launched a Capital Gains Account Scheme to offer tax relief to taxpayers, as well as ICICI Bank. It is also important to note that bank employees planned a nationwide strike on January 27 due to their demand for a 5-day work week.
Stock Market Dynamics
The stock market in India experienced volatility. The Sensex closed about 250 points lower following a tumultuous session, with the Nifty falling below 25,750 points. Various stocks, like HCL Tech, saw share price declines after their third-quarter results. Additionally, in January, FIIs withdrew over Rs 11,700 crore, and factors behind this selling were analyzed. The Metropolitan Stock Exchange is set to commence trading soon, potentially ending the BSE–NSE duopoly, as per reports. Also, the NSE IPO neared regulatory clearance, with the SEBI chief signaling a No Objection Certificate (NOC) was possibly coming later in the month.
Real Estate Trends
The Indian real estate sector showed significant activity and shifting trends. The Delhi-NCR region saw a 39% quarter-on-quarter increase in housing launches during the fourth quarter of 2025, with the mid-segment leading the supply. Indian homebuyers were observed to be increasingly moving towards premium and branded homes as the 2026 outlook strengthened. Additionally, the value of India's REIT market is predicted to rise to $25 billion by 2030, compared to $18 billion in 2025. Also, a new order in Bengaluru changed the rules regarding possession of flats, and the government introduced a new flat scheme in an NCR city after Makar Sankranti.
Budget 2026 Outlook
Expectations are high for the 2026 budget, with various industries and stakeholders offering their insights. Real estate industry representatives called for tax relief and stable policies. The CII suggested a phased privatization roadmap for public sector enterprises. Tax clarity and faster dispute resolution were listed by KPMG to ease business operations. The budget, slated to be presented by FM Nirmala Sitharaman at 11 AM on February 1, is expected to address several key areas, with focus on healthcare, insurance, and the pharma sectors. There are possibilities that joint tax filing for married couples may be introduced.
Investment Opportunities
Multiple investment options and schemes are available. Several small savings schemes were available, and their interest rates were highlighted. Gold and silver hit record highs, prompting discussions on whether investors should expect more upside. Premature redemption of Sovereign Gold Bonds (SGBs) provided substantial returns, with an investment of Rs 1 lakh turning into Rs 2.9 lakh. An account scheme that pays interest every day at the full repo rate. Also, there was news regarding gift mutual fund units to children without capital gains tax.
Personal Finance Insights
Individuals had multiple options for personal finance. Freelancers could secure personal loans, even without salary slips. The EPFO offered the possibility of withdrawing up to 100% of PF money. The Income Tax Department tracks online spending and digital activity to some extent, and this was examined. Some people received tax notices, which the ITAT gave relief, for unexplained property purchases. Also, there was information on how to open a savings account that pays you interest every day at the full repo rate.
