News Overview

The FPI selling in January was seen in BFSI, FMCG, and Consumer stocks; while metals saw heavy FPI buying

Indian stock markets in January 2026 saw risk-off trends, sharp sector divergence, lower valuations, and strong performance from PSU banks and metals.

RBI policy preview: Rate cut debate intensifies as liquidity takes centre stage, with Budget impacts priced in and uncertainty around the Indo-US trade deal.

Markets saw a selective rebound as NIFTY rose 1.09%, led by banks, while volatility stayed high and IT lagged, keeping gains narrow and follow-through weak.

The Union Budget 2026 reinforced fiscal discipline and sustained India’s investment-led growth strategy, with a fiscal deficit target of 4.3% of GDP, capex rising to ₹12.2 lakh crore, and a focus on high-quality, sector-diversified infrastructure spending that included semiconductors, electronics, and pharmaceuticals alongside traditional roads and railways.

In a sense, the Union Budget 2026-27 has been aligned with the larger goal of Viksit Bharat

There was not much in the budget for mutual funds, as most of the expectations did not really materialize

There was a lot of hue and cry over the STT increase, but that would only be a part of the overall capital market implications

There was not much for the people to cheer about on the direct tax front, but then a lot has already been done

Along expected lines, the Union Budget has expanded defence spending and kept the fisc in control