Economic Growth Outlook
India's economy is poised for robust expansion, according to recent forecasts. India Ratings predicts a GDP growth of 6.9% in Fiscal Year 2027, while the
government's initial estimates point to 7.4% growth for Fiscal Year 2026. This positive outlook underscores the nation's resilience and potential for sustained economic progress, despite global challenges. The anticipation of government reform measures is a contributing factor to the upward trajectory. This expansion is projected to come from various sectors beyond mere stability.
Market & Investment Trends
The Indian stock market has shown fluctuations, with some stocks experiencing significant gains and others facing declines. For example, Titan shares recently scaled a new 52-week high, while Hindustan Zinc saw a dip. Sector-specific analysis reveals that the Nifty Metal index was affected, down 2.5%, and silver prices also experienced volatility. The real estate sector continues to attract investment, with India's REIT market reaching Rs 2.3 lakh crore, surpassing Hong Kong in just six years. Moreover, the retail boom is expected to draw $3.5 billion in investments within the next three years.
Tax & Financial Deadlines
Several crucial deadlines impact taxpayers, including those related to Income Tax Returns (ITR). December 31 marked the deadline for belated ITR filings, PAN-Aadhaar linking, and GST returns. For the Assessment Year 2025-26, the deadline for revised ITR filings was also December 31. It's essential for taxpayers to submit investment proofs on time. Regarding ITR filing, a considerable number of returns were processed: 22.4 lakh updated returns and 26 lakh revised returns were filed up to December 31. The new Income Tax Law will be introduced in April 2026.
Banking & Finance Updates
The banking sector is experiencing positive trends, with Indian banks strengthened by double-digit growth and falling NPAs in 2024-25, according to the RBI. ICICI Bank has launched a Capital Gains Account Scheme to assist taxpayers in claiming exemptions and earning interest. Interest rates on 3-year fixed deposits are being compared across top banks. Consumers are looking at ways to enhance returns beyond conventional Fixed Deposits. The Reserve Bank of India (RBI) is also setting the redemption price for the SGB 2020-21 Series IX early exit, delivering over 150% return. Bank employees are planning a nationwide strike on January 27, raising concerns about a 5-day work week.
Sectoral Performance & IPOs
Multiple Initial Public Offerings (IPOs) have recently been a focus. The Shyam Dhani IPO received significant subscriptions, and the Modern Diagnostic IPO saw its GMP rise. The Bharat Coking Coal IPO is also in the spotlight. Moreover, E to E Transportation Infra IPO listed on the NSE SME platform at a 90% premium. The recent boom in IPOs has placed India in a leading position globally, with the primary market aiming for Rs 4 lakh crore in 2026. The performance of specific company stocks varies, with Senco Gold shares surging 14% due to a strong Q3 update and a positive Q4 outlook.
Real Estate & Home Finance
The real estate market shows several important dynamics. Housing sales fell to a 17-quarter low in Q4 2025, with a 10% decrease in supply. At the same time, the Delhi-NCR region experienced a 39% quarter-on-quarter increase in housing launches in Q4 2025. Homebuyers are shifting towards premium, branded homes as the 2026 outlook remains strong. Home loan interest rates are being compared across top lenders. Furthermore, reports suggest that home loan rate cuts are boosting housing affordability in India in 2025. In the Mumbai region, Rohit Sharma's wife, Ritika Sajdeh, purchased an apartment for Rs 26.30 crore.
Miscellaneous Financial Insights
Several additional financial updates have emerged. The Income Tax Department is tracking online spending and digital activity, although not all aspects are monitored. If money is transferred to the wrong UPI ID, there are steps to take to try and recover it. Experts are exploring the role of Alternative Investment Funds (AIFs) in the National Pension System (NPS). There is an increase in the number of Indians seeking returns beyond just their salary income, as ITR-2 and ITR-3 filings increase, according to ClearTax data. The prices of cigarettes and pan masala are set to increase from February 1 due to excise duty hikes. Also, the Rupee recently rose by 31 paise, closing below the 90-mark at 89.87 against the US Dollar.
