What Happened in the Economy & Markets (Taresh Market Update as on 5th Jan 2026)

This weekly update helps us understand what is happening around us, without reacting emotionally or making rushed investment decisions

Let me break it down for you.

1️⃣ Indian Economy – Steady, Not Perfect, But Moving Forward

• Factory and industrial activity improved sharply in November 2025.
  This means companies are producing more goods—good for long-term economic growth.
• Government spending remains high, which supports infrastructure, jobs, and demand.
• GST collections grew, showing that consumption is stable.
• Manufacturing growth slowed slightly in December, which is normal at year-end and not a cause for panic.
• RBI flagged some stress in unsecured retail loans, especially in private banks—this is important for risk control, not for fear.

Simple takeaway:
India’s economy is not overheating, not collapsing either. It is progressing with some speed bumps, which is healthy.

2️⃣ Equity Markets – A Positive Start to 2026

• Indian stock markets rose for the second consecutive week.
• Large companies (Sensex, Nifty) and mid-small companies all moved up.
• The rise was supported by:
  • Good automobile sales
  • Lower crude oil prices (helps inflation)
  • Hope of decent corporate earnings

However, valuations in mid- and small-cap stocks are already on the higher side.

Simple takeaway:
Markets are optimistic, but not cheap. This is not a time for aggressive lump-sum bets—it is a time for discipline.

3️⃣ Sector Snapshot – Who Did Well, Who Didn’t

Did well:

• Metals (due to global demand and China recovery signals)
• Auto (strong vehicle sales)
• Banking and Oil & Gas

Under pressure:

• FMCG (daily-use companies)
• IT (short-term global uncertainty)

Simple takeaway:
Different sectors move at different times. This is exactly why diversification through mutual funds works.

4️⃣ Debt & Interest Rates – What Fixed-Income Investors Should Know

• Government bond yields moved slightly higher.
• RBI actions and state borrowings caused short-term volatility.
• Corporate bond spreads remained stable.

Simple takeaway:
Debt markets are stable but sensitive.
For investors, this means:

• Avoid chasing returns
• Stick to goal-aligned debt funds
• Duration and credit quality matter more than timing

5️⃣ Gold, Oil & Commodities – Cooling Off

• Gold prices corrected after touching record highs.
• Crude oil prices fell, which is good for India’s inflation.
• Commodity movement is largely driven by global events.

Simple takeaway:
Gold remains a portfolio stabiliser, not a trading asset.
Corrections are normal after sharp rallies.

6️⃣ Rupee & Global Markets – Mixed Signals

• The rupee weakened slightly against the US Dollar.
• US markets corrected due to profit-booking.
• Europe was positive; Asia remained cautious.

Simple takeaway:
Global markets are not synchronized. This reinforces why Indian investors should:

• Focus on asset allocation
• Avoid reacting to daily global headlines

7️⃣ Regulatory & Policy Updates – Quiet but Important

• Small savings rates (PPF, Sukanya) are unchanged.
• RBI cautioned against crypto-style stablecoins.
• NPS management fees revised (long-term structural change).
• Gig workers likely to get social security benefits.

Simple takeaway:
Regulatory changes are gradual and thoughtful.
They support long-term financial stability, not short-term excitement.

My Guidance to You as Your Financial Planner

This update reinforces one timeless truth:

Wealth is not built by reacting to weekly news.
Wealth is built by following a plan.

What you should focus on:

✔ Continue SIPs without interruption
✔ Review asset allocation, not market levels
✔ Keep equity for long-term goals only
✔ Use debt for stability, not return chasing
✔ Avoid fear and avoid greed—both destroy wealth

Remember

Markets will always move.
News will always change.
But your goals, timelines, and peace of mind matter more than headlines.

If you are unsure whether your current investments align with your life goals, that is where financial planning begins.

Credentials & Contact

CFP® Taresh Bhatia
CERTIFIED FINANCIAL PLANNER®
Founder – The Richness Academy
Guiding Indian families with structured financial roadmaps

Financial Planning for every life stage —
Designing structured roadmaps where every rupee has direction and purpose

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Disclaimer: The views expressed are for educational purposes only and do not constitute financial, investment, tax, or legal advice. Please consult qualified professionals before making decisions. Mutual fund investments are subject to market risks.

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