The Economic Times

Budget: expectations would be that it would be yet another opportunity to deepen reforms by pushing manufacturing competitiveness, improving human capital, modernising tax and trade regimes, and reinforcing investment in emerging technologies that will lay out a roadmap for resilient, inclusive, and innovation-led growth.

The upcoming India-EU summit on January 27 will focus on a joint strategic agenda to deepen cooperation across prosperity, technology, security, and connectivity. Leaders are also set to announce the conclusion of the long-pending free trade agreement, aiming to boost bilateral trade and investment.

West Bengal shows strong control over revenue spending in the current fiscal year. This is a positive sign compared to other states. However, the state's capital expenditure has declined significantly. This trend has continued from the previous fiscal year. The report highlights this mixed fiscal performance.

Mala Gaonkar's SurgoCap Partners experienced a rapid ascent, tripling its assets to $6 billion within three years of its 2023 launch. This marked one of the fastest-growing debuts in hedge fund history, with Gaonkar leveraging data science to invest across various sectors. She emphasizes a small, collaborative team size for idea generation, drawing parallels to Jeff Bezos's wo-pizza-box team concept.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FPIs not only continued their selling spree in the week ended January 23 but also intensified it. The sustained outflows have wiped off Rs 16 trillion in market capitalisation for the week alone, contributing to a 2.5% decline in the Nifty index.

Markets experienced a sharp corrective move, with Nifty ending lower after a volatile week and breaking below key technical levels. India VIX surged, signaling increased risk perception. Despite a potential technical rebound due to oversold conditions, volatility is expected to remain elevated, especially with F&O expiry.

Adani Group companies clarified via stock exchange filings that they are not parties to any US SEC legal proceedings. Reports indicated the SEC sought court approval to serve summons to Gautam Adani and Sagar Adani via email after Indian authorities denied previous requests. The group reiterated no allegations are against the company.

Despite the decline in overall portfolio value during FY26, stock-level performance remains encouraging. More than half of the holdings delivered positive returns, with 11 stocks surging between 25% and 90% within a span of less than 10 months in FY26.

Eight high-potential Indian startups will showcase innovative agri-food and agri-tech solutions at Gulfood 2026 in Dubai, aligning with the government's 'Farm to Foreign' vision. APEDA's BHARATI Pavilion will highlight export-ready ventures, while a Culinary Area will feature live demonstrations of Indian cuisine, underscoring India's rich food heritage and diverse ingredients.

Indian equity markets closed the week on a subdued note, impacted by profit-booking and foreign investor outflows. Global trade concerns and domestic earnings disappointments weighed on sentiment. Analysts suggest caution ahead of the Budget, with Nifty facing resistance and broader markets showing weakness. PSU banks are outperforming private peers.

India is progressing towards fully automated Income Tax Return filing. Significant steps have already been taken to simplify the process. Further enhancements are needed in data reporting and tax laws. While complete automation is achievable for simple returns, complex cases will retain existing frameworks. The tax system is evolving for a better taxpayer experience.

Kotak Mahindra Bank has announced a solid financial performance for the third quarter of fiscal year 2026. The private lender saw its standalone net profit climb 4% year-on-year to Rs 3,446 crore. This growth was supported by a 5% rise in net interest income, reaching Rs 7,565 crore, indicating a healthy expansion in its core lending operations.

Ultratech Cement has announced strong financial results for the third quarter of FY26. The company's profit after tax saw a significant 32% year-on-year increase, reaching Rs 1,792 crore. Net sales also climbed by 22.5% year-on-year to Rs 21,506 crore. These figures exclude the impact of the New Labour Code.

US Treasury Secretary Scott Bessent indicated potential removal of 25% extra tariff on India if its Russian oil purchases continue to decline, calling the outcome a huge success. This comes as the US Congress debates a bill that could impose a 500% duty on countries buying Russian oil, while India maintains its focus on securing affordable energy for its citizens.

Silver has surged past $100 per ounce for the first time, driven by a confluence of factors including a weakening dollar, robust industrial demand for green technologies, and supply constraints. Analysts highlight its evolving role from a safe haven to a critical mineral, with expectations of continued strength amid global economic shifts and geopolitical uncertainties.

2026 Budget household factors: Indian households anticipate the Budget to bring financial relief. Expectations focus on income tax reductions and measures to lower the cost of goods through local production. Citizens also seek employment schemes and affordable housing support. These demands highlight a desire for immediate financial stability and long-term economic strengthening.

In the upcoming week, a host of companies have announced such actions, ranging from high-percentage interim dividends to rights issues at discounted prices. The following slides provide a detailed, day-wise summary based on StockEdge data.

Union Budget of India: The upcoming Union Budget is poised to prioritise economic stability and fiscal prudence, benefiting from higher-than-expected growth and lower inflation. Experts anticipate a focus on maintaining sound public finances and securing trade deals with the US and EU to boost exporters amid global uncertainties. While central government fiscal targets are likely to be met, state deficits remain a concern.

The primary market anticipates a quiet week with no mainboard public offerings. Investor focus will shift to SME platforms, featuring five IPOs. Shadowfax Technologies is set for its mainboard listing. SME IPOs from Accretion Nutraveda, Msafe Equipments, Kanishk Aluminium India, and CKK Retail Mart will open. Listing performance is expected to vary.

Bitcoin hovers around $90,000 as investors await the Federal Reserve meeting for a potential market catalyst. Both Bitcoin and Ethereum saw slight dips in the last 24 hours, with major altcoins experiencing more significant declines. The global crypto market capitalization also edged down, reflecting broader macroeconomic influences on digital asset sentiment.

PPFAS Mutual Fund introduces the Parag Parikh Large Cap Fund. This new offering blends active and passive investing for exposure to India's top 100 companies. It aims for cost efficiency similar to passive funds while employing smart execution strategies. The fund benchmarks against the Nifty 100 TRI. Existing flexicap investors can consider this for broad large-cap exposure.

India's defence sector is transforming. A record budget and focus on domestic production are boosting capabilities. Exports are growing, reaching over 100 countries. New technologies and private sector involvement are key. This presents a multi-decade opportunity for investors. The upcoming budget is expected to further enhance capital expenditure and promote exports.

Indian REITs delivered strong returns in 2025. Investors and developers anticipate the Union Budget 2026 for policy and tax reforms. These measures aim to enhance market depth and liquidity. The goal is to attract more investment into India's real estate sector. This will support sustainable growth and investor confidence.

India's real estate sector needs support in Budget 2026. Leaders want incentives for affordable housing and faster infrastructure projects. Reforms can boost demand and rental housing. Land reforms are also key. Action is needed to prevent a widening housing gap and ensure balanced urban development for all.

India's auto sector saw a strong Q3 recovery driven by GST cuts, festive demand, and lean inventories. Broad-based growth in two-wheelers, passenger, and commercial vehicles continued post-festive season. TVS Motor and Maruti Suzuki are highlighted for market share gains and strong growth prospects.

Union Budget 2026 arrives amid escalating climate warnings, water stress, heatwaves, floods, and air pollution. The upcoming budget is likely to focus on executing climate action as an industrial strategy. Expect significant investments in green infrastructure and renewable energy. The budget aims to bridge gaps in adaptation finance and ensure effective implementation. This marks a crucial step towards a multi-trillion dollar green economy for India. Focus will be on water resilience and urban

India's tax-to-GDP ratio stands at 19.6 percent, matching major global economies. This figure, combining central and state collections, exceeds other emerging markets. Advanced economies report higher ratios. Policy reforms are underway to boost collections. The upcoming Income Tax Act 2025 aims to target the informal economy and improve efficiency.

Emerging-market assets and precious metals are experiencing a strong start to 2026, driven by US-Europe tensions that are weakening the dollar and encouraging global diversification. Investors are pouring record cash into emerging-market funds, with Asian technology and Latin American equities leading the rally, as a rotation out of US holdings gains momentum.

Here is a closer look at the additions, stake increases, trims and exits made during the third quarter.

India's economic outlook remains strong despite global uncertainty. Navneet Munot of HDFC AMC highlights policy continuity and sustained reforms. The upcoming Budget is expected to boost domestic investment and earnings. Opportunities exist across sectors, particularly in manufacturing and new-age technologies like AI. The government is urged to incentivize investment in capital markets and R&D.

Markets brace for a volatile week with the Fed's first meeting, U.S.-Europe relations, and major tech earnings from Apple, Microsoft, Meta, and Tesla. Investors will also monitor Japan's economic jitters and a wave of emerging market interest rate decisions, seeking clarity amidst ongoing geopolitical and economic uncertainties.

The Japanese Yen saw significant volatility on Friday. Two sharp upward movements sparked speculation that authorities might have conducted a rate check. This action often signals potential intervention to curb the Yen's decline. Traders remain watchful for further moves by Tokyo to stabilize the currency. Global markets also reacted to geopolitical tensions affecting the US Dollar.

Investors pulled billions from U.S. equity funds amid tariff threats, though President Trump later eased these concerns. While large-cap and small-cap funds saw outflows, sector funds like financials and healthcare attracted new money. Bond fund investments dipped, but investment-grade funds saw increased demand. Money market funds experienced further withdrawals.

Investors are shifting focus to AI profit potential and interest rate paths amid a packed earnings week featuring tech giants like Apple and Microsoft. The Federal Reserve's upcoming meeting will also be closely watched for rate decisions and discussions on its independence. Geopolitical tensions, though easing, remain a wildcard.

Silver prices have surged past one hundred dollars an ounce. This surge is fueled by retail investor and momentum-driven buying. Physical markets for the metal are experiencing tightness. Analysts warn of a potential major correction. Gold has also hit a record high. Industrial demand is under pressure. This situation presents a dynamic market for investors.

India-EU FTA: European Union's Vice-President Kaja Kallas is in New Delhi for a visit that could see a long-awaited free trade agreement finalized. This pact, dubbed 'the mother of all deals,' aims to boost trade between India and the 27-member bloc. A new security and defence partnership is also set to be signed, signaling a significant reset in bilateral ties.

U.S. stocks experienced a mixed close on Friday, with the Dow Jones Industrial Average falling due to Intel's sharp decline on a weak outlook. Despite geopolitical concerns and a volatile week, investors remain confident in the robust American economy. The upcoming show-me season for tech earnings, particularly from the Magnificent Seven, will be crucial for justifying current stock valuations.

IndiGo's shares fell on Friday following a significant drop in quarterly profit. Brokerages offered mixed views, citing short-term challenges like rising costs and currency issues. However, many remain positive about the airline's long-term growth potential. Analysts project potential upside for the stock in the coming year, despite some caution regarding immediate future earnings.

Securities and Exchange Board of India has given the green light to thirteen companies for their Initial Public Offerings. Firms like Sify Infinit Spaces and Commtel Networks are among those that received Sebi's final observations. This clearance allows these companies to move forward with their plans to raise capital through the stock market.

Adani Group stocks saw a sharp decline on Friday. This followed news that the US SEC is seeking court permission to email summons to founder Gautam Adani and nephew Sagar Adani. Allegations involve fraud and a bribery plot. The group's market value dropped by over $9 billion. Investors are advised to wait for clarity.

The Reserve Bank of India has announced three liquidity-boosting measures, including open market operations and a dollar-rupee swap, totaling approximately 1.92 lakh crore. These actions aim to enhance system liquidity and support the transmission of previous rate cuts. Experts anticipate further liquidity injections in the coming months.

IndusInd Bank's net profit plummeted 91% to 128 crore in the third quarter due to deteriorating asset quality and increased provisions. Despite this sharp decline, the bank returned to profitability after a significant loss in the previous quarter, which was impacted by microloan provisions and derivative misreporting issues.

The Indian rupee hit a record low of 91.97 against the dollar on Friday, driven by equity selling and importer demand. Reports of potential US regulatory summons to billionaire Gautam Adani in connection with alleged bribery and fraud significantly impacted the currency's retreat. Foreign investors have divested over $3 billion from Indian markets this month.

Indian stock markets ended a difficult week with a significant drop on Friday. The rupee hit new record lows, and global tensions fueled investor caution. Shares of Adani Group companies saw a sharp decline. Broader markets also experienced substantial losses. Investors are concerned about global uncertainty and potential conflicts.

Videotelephony firm Zoom, telecom giant T-Mobile and low-cost airline Southwest Airlines are among the latest global companies considering the establishment of global capability centres (GCCs) in India, said people aware of the matter, adding that they are in talks with several states toward this end.

India will be the partner country at Gulfood 2026 in Dubai. Over 160 exhibitors from 25 states will present processed foods, frozen products, and pulses. This participation aims to boost India's agri exports. The event aligns with opportunities from the India-UAE Comprehensive Economic Partnership Agreement.

Silver and gold prices climbed on Friday, driven by strong safe-haven demand amid ongoing geopolitical uncertainty and expectations of easier US monetary policy. In the domestic retail market, silver rose 6.42% to 3,18,960 per kg, while gold gained 3% to 1,55,428 per 10 gm.

The government has approved wage revisions for public sector general insurance employees and Nabard staff, with a 12.41% hike for insurers effective August 2022. Pension revisions for RBI and Nabard retirees have also been sanctioned, enhancing benefits for thousands of former employees and their families.

India's private sector activity rebounded in January, with the HSBC Flash Composite Output Index rising to 59.5, driven by faster growth in new orders and output. Business sentiment improved, reaching a three-month high, as both manufacturing and services sectors saw accelerated growth. Hiring resumed, and input prices rose at their fastest pace in four months.