After a year of ups and downs, experts say India's stock market is set for steady growth in 2026.
On December 24, the Sensex slipped 0.14% to 85,408.70 and the Nifty 50 fell to 26,139.70, ending the day in the red. Despite this dip, the indices are trading close to all‑time highs and have risen about 10% year‑to‑date.
Motilal Oswal sees a clearer path forward for 2026, driven by three main factors:
Large‑cap stocks look fairly priced after the recent consolidation. The Nifty‑50’s forward P/E is about 21.5×, just a touch above its long‑term average of 20.8×. Mid‑cap and small‑cap stocks are still pricey, trading roughly 26% and 50% above their historic averages, so investors should pick companies with strong balance sheets and clear earnings visibility.
2025 was a year of consolidation. After hitting record highs in September 2024, the market corrected until early April 2025, partly due to US trade tariffs. Global trade tensions, foreign fund outflows and currency swings kept the market range‑bound. By December, the Nifty reclaimed most of its losses and even set a new high of 26,325.
Mid‑caps managed a modest 6% gain, while small‑caps fell about 6% after strong rallies in 2023‑24. The Reserve Bank of India helped stabilize the market with four repo‑rate cuts totalling 125 basis points, bringing the policy rate to 5.25%, and a 100‑basis‑point CRR cut that improved liquidity.
With earnings becoming clearer, policy support expected from the 2026 budget, and the possibility of resolving US tariff issues, the outlook for Indian equities appears favorable. Investors are advised to stay disciplined, focus on high‑quality businesses, and view market volatility as a chance to build positions in companies aligned with India’s long‑term growth themes.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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Join TelegramYatayat Corporation, a logistics firm from Gujarat, has officially filed its draft prospectus with SEBI, signaling the start of its initial public offering. What the IPO includes Fresh issue of up to 77 lakh new equity shares. Offer for sale of up to 56 lakh shares by promoter Meena Praveen Aggarwal. Total shares on offer could reach up to 1.33 crore. Where the shares will trade The shares are planned to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) once the IPO is completed. Use of the money raised Money from the new shares is expected to be used to pay down existing loans, support working‑capital needs and fund general corporate activities. Company snapshot Yatayat focuses on full‑truck‑load (FTL) transport across major Indian freight corridors. It operates an asset‑light model, owning a small fleet while partnering with many independent truck owners. The firm also offers cross‑border services to Bangladesh and handles part‑load, express, over‑dimensional and multimodal freight through its subsidiary. Recent financial performance Revenue grew to ₹448.13 cr in FY2025, up from ₹348.34 cr in FY2024. Profit after tax rose to ₹30 cr in FY2025, compared with ₹14.95 cr the previous year. Profit margin improved to 6.70% in FY2025. For the quarter ending June 30 2025, revenue was ₹119.68 cr and profit after tax ₹7.83 cr. How to apply Unistone Capital is handling the book‑running for the issue. Investors can apply for the fresh issue or buy the promoter’s shares during the offer period, following standard IPO procedures on the stock exchanges. Key takeaway The IPO gives retail investors a chance to own a piece of a growing logistics player that is expanding its network across India and into Bangladesh, while the company gains capital to reduce debt and fuel further growth. Remember, this is just an overview, not a recommendation. Do your own research and consider your risk tolerance before investing.
SEBI has announced a tweak to the Basic Services Demat Account (BSDA) rules that will make it easier for small investors to qualify and reduce paperwork for depository participants. What the change means Effective from March 31, 2026, the regulator will no longer count Zero Coupon Zero Principal (ZCZP) bonds or delisted securities when calculating the value of a portfolio for BSDA eligibility. In simple terms, these assets will be ignored in the eligibility test. Why it matters for investors Lower compliance burden: Depository participants (DPs) won’t need to include hard‑to‑price securities in their calculations. Clearer eligibility: Investors with holdings under ₹10 lakh can more easily meet the BSDA threshold. Automatic conversion: If you qualify, the DP must convert your regular demat account to a BSDA unless you actively opt out. New quarterly review rule DPs will now reassess every demat account’s BSDA eligibility every quarter, rather than on an ad‑hoc basis. For illiquid securities, the last available closing price will be used, and if market prices are missing, the most recent traded price or NAV will apply. How the valuation works Listed securities: valued at daily closing price or NAV. Unlisted securities (except mutual fund units): face value can be taken. Illiquid securities: use the last closing price. Suspended, delisted, and ZCZP bonds: not considered for BSDA eligibility. Background on BSDA The BSDA was introduced in 2012 to give investors with small portfolios (under ₹10 lakh) a cheaper, simpler demat account option. By removing certain low‑liquidity assets from the eligibility calculation, SEBI aims to further reduce the cost and complexity for these investors. Remember, this is perspective, not prediction. Do your own research and consider your personal financial situation before making any decisions.
Investors often treat all money in the market the same, but fresh cash entering the market behaves differently from money that’s already invested. Understanding this split can help you navigate changing market moods. Why the distinction matters When new investors pour money into stocks, they usually chase recent winners or hot sectors. Existing investors, however, tend to hold on to their positions and react more cautiously. Mixing the two can mask the true direction of the market. How the macro mood influences fresh vs existing money Broad economic sentiment – such as interest‑rate moves, earnings outlooks, or geopolitical events – can shift the market’s tone. In a bullish mood, fresh money often fuels rapid price gains, while in a bearish mood, it may flow into safer assets, leaving existing stock holdings to bear the downside. Practical steps for retail investors Watch inflow data: Look at fund inflow reports to see if fresh money is entering equities or staying in cash. Separate your portfolio: Treat new contributions as a distinct “fresh‑money” bucket and decide whether to invest them in the same stocks as your existing holdings. Align with market mood: In a positive macro environment, consider allocating fresh money to growth stocks. In a negative environment, shift toward defensive sectors or keep cash on the sidelines. Bottom line Distinguishing fresh money from existing funds gives you a clearer picture of market dynamics. By recognizing how macro sentiment affects each, you can make smarter allocation choices and protect your portfolio against sudden swings. Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before acting.