Indian stocks are set to move higher in 2026, driven mainly by stronger company earnings rather than cheap prices.
After a year of flat performance, corporate profits are starting to improve. Better domestic demand, lower taxes from GST changes and companies using their assets more efficiently are all helping earnings rise.
Big companies (the Nifty 50) are trading near their long‑term average price‑to‑earnings ratio. With earnings expected to grow about 12% next year, these stocks look fairly priced and could benefit from the earnings bounce.
Mid‑ and small‑cap stocks are still priced higher than their historic averages. Mid‑caps have a modest earnings premium, while small‑caps are about 50% above normal. Investors should look for the strongest companies and avoid those with weak profit outlooks.
The final trade agreement with the United States may not be signed until March. This could keep sentiment cautious, especially for exporters, but India’s recent deals with the UK, Oman and New Zealand should help cushion the impact.
A peace settlement would calm global energy and commodity markets, keeping oil prices steady. This would support India’s inflation outlook and lower input costs for businesses.
Foreign institutional investors are likely to come back if Indian earnings stay strong, the rupee stays stable and the Indian budget shows higher capital spending. A softer monetary stance in the US and Europe would also help.
In 2025, Indian tech firms missed out on the early AI hardware boom. In 2026, AI spending is shifting to software and services, areas where Indian IT companies are strong. This could give the sector a boost.
Overall, the Indian market in 2026 is likely to be driven by earnings growth. Large‑caps are better positioned, while SMID investors need to be selective. Keep an eye on policy support, global trade developments and the evolving AI landscape.
Remember, this is just an overview, not a prediction. Do your own research or consult a financial adviser before making any decisions.
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Join TelegramIndia saw an unprecedented wave of initial public offerings in 2025, raising nearly Rs 1.95 trillion and giving banks a record $417 million in underwriting fees. Record IPO Activity in 2025 Companies listed on Indian exchanges pulled in about Rs 1.95 trillion, beating the previous year’s high of Rs 1.73 trillion. The jump was driven by more retail investors, steady demand from institutions, and rules that made it easier for firms to go public. Bank Earnings Reach New High Strong deal flow stopped years of fee‑cutting wars and let banks charge higher commissions. On average, banks earned 1.86% of the deal value, up from 1.67% a year earlier. Axis Bank topped the list with $34.3 million in fees. Citi earned $27.1 million. JM Financial collected $25.6 million. JPMorgan made $22.6 million. Motilal Oswal Financial Services saw its fee income grow almost fourfold. Other notable earners included Morgan Stanley and State Bank of India. Why Fees Are Still Low by Global Standards Even with the record haul, Indian underwriting fees remain cheaper than many markets. For example, the typical fee in Hong Kong sits around 1.5%, while India’s average is now about 1.86%. What Might Happen Next? Analysts expect fee percentages to edge higher if more standardized IPOs hit the market this year. A steady pipeline could also reduce the need for aggressive discounting, helping keep pricing discipline intact. Remember, this is perspective, not prediction. Do your own research before making any investment decisions.
India’s National Stock Exchange (NSE) is gearing up to submit its draft prospectus for a public listing by the end of March. Why the IPO Matters The NSE is valued at about $55 billion, making it one of the largest IPOs the country has ever seen. A successful listing could bring new investment opportunities for retail and institutional investors alike. Current Progress The exchange is in talks with investment banks and law firms to finalize the prospectus and test investor demand. Formal appointments will follow once SEBI, the market regulator, gives a no‑objection certificate. Regulatory Hurdles The NSE has been trying to go public since 2016. A pending Supreme Court case and SEBI’s investigation into its co‑location facilities have delayed the process. Last year, the exchange offered a settlement of about ₹13.9 billion, which SEBI is still reviewing. Shareholder Landscape More than 177,000 shareholders currently hold unlisted NSE shares. Major institutional owners include Life Insurance Corporation of India, State Bank of India, Temasek Holdings, Morgan Stanley and the Canada Pension Plan Investment Board. Before the IPO, unlisted shares trade at roughly ₹2,000 each. What Investors Should Watch How many shares will actually be offered – the company has not disclosed the exact percentage. Whether the IPO pricing will be attractive compared with the listed rival, BSE Ltd, which trades around ₹2,800 per share. Potential priority given to long‑term institutional holders during the share‑sale process. Bottom Line If the NSE clears SEBI’s final hurdle and files the prospectus as planned, retail investors could gain exposure to a market‑leader that has never been listed before. Keep an eye on the official filing and any pricing guidance that follows. Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.
The much‑awaited listing of Bharat Coking Coal may be pushed back by a few days because the stock exchanges will be closed on Jan 15 for elections in Maharashtra. Why the listing could slip The IPO opened on Jan 9 and was set to close on Jan 13. Allotment was expected on Jan 14, with refunds and share credit scheduled for Jan 15. Since Jan 15 is a settlement holiday, those post‑allotment steps are likely to move to Jan 16, which means the actual listing could shift from Jan 16 to Jan 17 or even Jan 19, pending official confirmation. Strong demand despite the possible delay Investor enthusiasm remains high. The Rs 1,071 crore issue was fully subscribed within 30 minutes on day one and more than 25 times oversubscribed by the end of day two. Retail and non‑institutional investors led the bidding, showing confidence in the company’s valuation. In the grey market, the shares traded at a premium of about Rs 11 (≈46% above the top issue price of Rs 23), hinting at expected listing gains even in a volatile market. About Bharat Coking Coal Largest producer of coking coal in India and sole major domestic supplier of prime coking coal. Controls roughly 21.5% of India’s total coking coal reserves (≈7.91 billion tonnes). Accounts for about 58.5% of domestic coking coal production in FY25. Operates 34 mines in Jharkhand and West Bengal, close to major steel plants. Subsidiary of Coal India, the world’s biggest coal producer. Financial snapshot and valuation view FY25 revenue: ~Rs 14,401 crore. Consolidated profit: ~Rs 1,240 crore. Debt‑free and cash‑generative. Analysts price the upper band (Rs 23) at about 8.6 × FY25 earnings or an EV/EBITDA of 6.4 × post‑issue capital. Brokerages generally recommend subscribing mainly for potential listing gains, noting that the valuation appears fairly priced given the company’s market share and reserve base. Key takeaway Even if the listing is delayed by a few days, strong subscription levels and a solid financial profile suggest the IPO could still deliver healthy returns for investors. Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.