The Economic Times News

ITC shares fell sharply on Thursday, erasing over Rs 50,000 crore in market value after a steep new cigarette tax spooked investors. The excise hikeon top of GSTmay force price increases of 15% or more, raising risks of volume loss and a shift toward illicit trade, analysts warned.

Jefferies warned that the sharp hike in cigarette excise duty is clearly negative for ITC in the near term, likely hurting volumes and earnings. The brokerage called the move a major negative surprise for the legal cigarette industry, estimating over a 20% rise in effective tax incidence, and said it increases policy uncertainty despite its continued positive stance on ITC.

India is shifting to a pragmatic, interest-based foreign policy for 2026, moving away from rigid alliances. This new global playbook prioritizes economic resilience through diversified trade, energy security via Russian oil purchases, and cautious engagement with China. The strategy aims for flexibility and autonomy, balancing partnerships with national interests in a multipolar world.

Investor focus shifts from momentum to valuation and liquidity amid market churn. Quant Mutual Fund's CIO Sandeep Tandon advises avoiding frothy Q-commerce stocks, favoring undervalued traditional companies. He sees pharmaceuticals as a strong, long-term 'no-brainer' bet with limited downside and significant upside.

Investors faced significant psychological challenges in 2025 due to extreme valuations and uneven market gains. Sandeep Tandon, CIO of Quant Mutual Fund, highlights the importance of emotional control and avoiding the trap of chasing momentum. While 2025 saw record highs, many portfolios suffered, especially in mid and smallcaps.

Adani Power shares rose as much as 7% on Thursday, with brokerages highlighting a long runway for earnings growth driven by a sharp expansion in capacity, rising long-term power purchase agreements and improving cash-flow visibility as Indias baseload power demand strengthens.

After a weak 2025, Indias cement sector enters 2026 facing capacity pressure and pricing challenges, even as long term infrastructure driven demand remains intact.

Shriram Finance shares hit a record high as analysts upgraded target prices following MUFGs landmark investment and a credit rating upgrade, boosting confidence in the companys capital strength and growth outlook.

Apollo Micro Systems shares jumped after its subsidiary won a fresh 150 crore order from a private player, marking the second major contract in two days. Earlier, the company had secured orders worth over 420 crore, including a 419.39 crore contract from Coal India subsidiaries, boosting investor sentiment.

Vodafone Idea shares jumped nearly 10% after regulatory filings showed the telecom operator will receive Rs 5,836 crore from Vodafone Group under a revised liability settlement, while separate reports pointed to fresh government relief on its adjusted gross revenue dues, together offering a rare boost to the debt-laden telco.

Cupid Ltd's shares have surged 34% in 15 sessions, hitting a new all-time high. The FMCG player announced plans for its first overseas manufacturing facility in Saudi Arabia, aiming to boost global expansion. Promoter confidence has also strengthened with a significant reduction in pledged shares.

LIC's 2025 investment performance revealed a stark divide. A significant majority of its portfolio stocks ended the year in the red, with many experiencing substantial declines. However, a notable portion of its holdings also delivered impressive gains. This mixed performance highlights the volatility experienced by India's largest institutional investor during the year.

India is set to become a global growth powerhouse. Its IT sector, digital transformation, and young population will drive this expansion. Improved infrastructure and credit access will further boost the economy. Entrepreneurship will fuel innovation. This positions India for significant economic progress over the next two decades.

Bitcoin is trading between $87,500 and $88,000. Crypto consolidation continues. Bitcoin saw a slight dip in the last 24 hours. Ethereum gained a little. Many major altcoins like XRP and Solana experienced losses. The global crypto market capitalization is near $3 trillion. This follows a period of decline in 2025 for Bitcoin and Ethereum.

Indian government bonds experienced a decline on the initial trading day of 2026. This downturn was driven by anticipated supply pressures from an upcoming debt sale and a projected substantial borrowing schedule for states in the January-March quarter. Traders are preparing for significant auctions. The market is closely watching the impact of this increased debt supply.

India's premium housing market experienced a strong performance in 2025. Capital values rose significantly, especially in under-construction projects. This trend was fueled by robust end-user demand, better infrastructure, and limited supply in prime areas. Experts predict this premium segment will remain buoyant in 2026, supported by wealth growth and improved transparency. Disciplined pricing and supply management are key for stability.

Nifty IT could emerge as a contrarian winner in 2026 as rupee depreciation, AI-led consulting demand and expected Fed rate cuts boost earnings, says Sunil Subramaniam. He also sees strong recovery potential in real estate, GLP-1 driven pharma growth and a renewed private-sector capex cycle shaping market leadership next year.

Gold and silver began 2026 on a mixed note, with gold trading flat while silver extended its strong rally. Gold February futures inched up 0.06% on MCX, whereas silver March futures rose 0.86%, continuing last years sharp surge driven by tight supply, strong demand and supportive interest rates.

Vodafone Idea shares experienced sharp volatility following a government relief package. While the announcement provided a significant financial breather by deferring payments, it failed to address concerns about the company's ability to secure fresh bank funding, leading to investor disappointment and a stock decline.

Sovereign wealth and public pension funds channelled a record share of capital into the United States in 2025, while emerging markets saw a sharp decline in inflows despite strong performance.

Tobacco stocks like ITC and Godfrey Phillips saw significant drops on Thursday. This follows the finance ministry's notification of an additional excise duty on tobacco products. The new levies, effective February 1, will be applied over and above the GST rate. This change replaces the existing compensation cess. Companies may need to increase prices due to these higher taxes.

Berkshire Hathaway shares edged lower as Warren Buffett prepared to hand over the chief executive role to Greg Abel, marking a historic leadership transition while highlighting the companys unmatched long term investment record.

A tough year for Indian equities has triggered investor FOMO, but market veteran Devina Mehra argues that weak sentiment, not regret, should guide portfolio decisions. The focus, she says, must be on reassessment, quality investments and intelligent global diversification.

Indian stock markets, Nifty and Sensex, started 2026 with gains for a second day. Auto, bank, and IT stocks saw significant increases. However, major FMCG companies experienced sharp drops, limiting the overall market rise. The Sensex opened higher by 220 points, and the Nifty 50 also climbed. This marks a positive start to the trading year.

Despite Nifty's decade-long winning streak, 2026 targets of 29,000 face significant hurdles. Experts warn of potential derailment from a delayed US-India trade deal, global geopolitical chaos, and an AI bubble burst. Earnings-valuation mismatches, crude oil spikes, rupee depreciation, and an equity supply glut also pose substantial risks to the rally.

Hyundai Motor India announced a marginal vehicle price hike from January 2026 to offset rising input costs. While near-term technical indicators show mild pressure, strong long-term trends, stable valuations, and rising foreign investor interest continue to support the stocks broader growth outlook.

IndiGo closed 2025 with strong passenger growth, expanded domestic and international networks, new long-haul routes, and major aircraft orders. With A321XLR induction, wider global alliances, and improved connectivity, the airline enters 2026 positioned for sustained international expansion and operational scale.

Indian government bonds are poised for a cautious start to the New Year, anticipating fresh debt supply and state borrowing schedules. The benchmark 10-year yield is expected to trade within a narrow band as traders assess demand-supply dynamics. Despite a third consecutive annual decline in yields, appetite for increased debt issuance remains a key concern.

Indian rupee traders are navigating a cautious New Year outlook. The Reserve Bank of India's strong intervention in December significantly influenced the currency's movement, overshadowing underlying market signals. Expecting a subdued trading session with limited price discovery, the rupee is poised for a largely flat opening.

Indian equities are poised for 2026 with Nifty projected between 28,000-29,000, emphasizing stock selection over index momentum. While gold offers portfolio stability, investors should be cautious of overvalued sectors like defence and railways. A disciplined approach focusing on fundamentals and long-term compounding is key for wealth creation.

India's strong growth and domestic liquidity support a well-priced equity market. However, retail debt allocation has declined, prompting a strategic reset. Northern Arc Investment Managers emphasizes credit solutions, focusing on high-quality and private credit. The firm sees significant opportunity in India's private credit market, especially for MSMEs, expecting resilient performance and risk-adjusted returns.

An uptrend signal is generated when the RSI crosses above 50 from below.

IREDA shares are poised for attention following a robust business update for the December quarter. The state-run lender reported significant year-on-year growth in loan sanctions, disbursements, and its outstanding loan book. This follows a strong September quarter performance, which saw a substantial increase in net profit and revenue.

Vodafone Idea shares will be in focus on January 1, 2026. The company will receive Rs 5,836 crore from its promoter group, Vodafone Group. This follows an amendment to an agreement concerning contingent liabilities. Vodafone Group Promoters will release Rs 2,307 crore over the next year. The remaining amount will be secured through a share-based mechanism.

The RBI said that household borrowing patterns have changed with non-housing retail loans, largely taken for consumption, accounting for 55.3% of total household borrowing from financial institutions as of September 2025.