Author: Sumit Rathore

The financial landscape for 2026 is poised to be influenced by a combination of challenges and opportunities, as investors face potential tariffs and foreign fund sell-offs. Central bank actions and prospects of trade deals are anticipated to impact financial assets, particularly in the early months of the year, set against a backdrop of increased market volatility. Experts suggest that investors should adopt a cautious approach as they prepare for the New Year, considering various asset classes and market dynamics.

Investment Strategies for 2026

As the New Year approaches, it is advisable for investors to proceed with caution in the stock market. Leading indices may encounter fluctuations in the initial months of 2026, driven by corporate performance and domestic investment flows. Expectations for a rebound in corporate earnings exist; however, challenges such as limited progress on the India-US trade deal, geopolitical uncertainties, and foreign fund selling could exert pressure on equity markets. Additionally, the weak rupee may contribute to volatility, emphasizing the need for investors to remain informed and agile in their investment choices.

In the domain of fixed deposits (FDs), banks are unlikely to implement significant cuts to interest rates due to the prevailing economic conditions. Although credit demand is on the rise, deposit mobilization remains sluggish. This stability in FD rates may be advantageous for conservative investors seeking safer options. Meanwhile, the cryptocurrency market, which gained traction in 2025, is expected to continue its upward trend in 2026, fueled by increasing institutional demand for digital assets.

Precious Metals and Mutual Funds

Gold and silver are forecasted to maintain their value in 2026, following two years of considerable gains. Factors such as geopolitical tensions, uncertain global markets, and rising industrial demand for silver are likely to sustain elevated prices. Investors may find these precious metals appealing as a hedge against market volatility.

Regarding mutual funds, the industry is projected to achieve a significant milestone, potentially surpassing the $1 trillion mark in assets under management (AUM) by the end of 2026. The growth of passive funds is expected to outstrip that of actively managed funds, mirroring a broader trend in investor preferences. This shift could yield long-term benefits for those considering mutual funds as a stable growth option.

Regulatory Changes and Cybersecurity Measures

The Reserve Bank of India (RBI) is intensifying its focus on cybersecurity and fraud prevention within the banking sector. New regulations mandate that banks secure explicit customer consent for digital banking services, ensuring that customers are fully aware of the services activated on their accounts. Furthermore, banks are required to establish real-time alerts and enhance risk controls to mitigate fraud risks.

In a bid to promote financial inclusion, the RBI has stipulated that basic savings bank deposit accounts must be offered without any fees. This initiative aims to transform no-frills accounts into accessible banking solutions. Additionally, banks need to adopt tighter cybersecurity measures, including submitting core-banking ring-fencing plans to safeguard critical systems against cyber threats.

The insurance sector is also witnessing significant changes, with new regulations expected to shift the focus from solvency-driven capital to risk-based capital. This transition is likely to promote mergers and acquisitions within the industry as relaxed foreign direct investment norms attract new players. Enhanced compliance measures, including the Digital Personal Data Protection Act, will further tighten regulations across banking and financial services, ensuring better protection for consumer data.

Market Outlook and Future Considerations

As 2026 unfolds, financial markets are expected to encounter a blend of challenges and opportunities. Investors must remain vigilant and adaptable, particularly in the face of potential geopolitical tensions and economic uncertainties. The anticipated growth in mutual funds and the stability of fixed deposit rates may provide reassurance to conservative investors.

Moreover, ongoing developments in the cryptocurrency market and sustained demand for precious metals could offer lucrative opportunities for those willing to diversify their portfolios. As regulatory changes evolve, particularly in the banking and insurance sectors, stakeholders will need to stay informed to effectively navigate the changing landscape. Overall, a cautious yet proactive investment strategy will be essential for success in the coming year.

Digihunt is not a financial advisor and this is not investment advice.

Fast-moving consumer goods distributors in India are urging the Securities and Exchange Board of India (SEBI) to halt the Initial Public Offerings (IPOs) of loss-making quick-commerce companies. The All India Consumer Products Distributors Federation (AICPDF) contends that these companies present significant risks to small retail investors and the overall retail ecosystem. They are advocating for immediate measures, including a temporary pause on IPO approvals until the ongoing investigations by the Competition Commission of India (CCI) are concluded.

Concerns Over Loss-Making Business Models

The AICPDF has raised serious concerns regarding the financial health of several quick-commerce companies, which are reportedly grappling with substantial cumulative losses and negative cash flows. These firms often depend on continuous injections of private capital to maintain operations, cover consumer subsidies, and develop capital-intensive logistics networks. The federation emphasizes that many of these businesses do not demonstrate proven profitability at the unit level, raising doubts about their long-term sustainability.

Despite these financial hurdles, the valuations of such companies are frequently based on metrics such as gross merchandise value and market share, rather than actual earnings or free cash flow. This trend has been particularly evident in recent IPOs from firms like Zomato and Swiggy, which launched their offerings after enduring years of losses. The AICPDF points out that these IPOs enabled early investors to cash out while the companies continued to report significant financial deficits.

Impact on Small Retail Investors

The AICPDF argues that the current IPO landscape poses a real threat to small retail investors, potentially leaving them with the financial burden as early investors exit. The federation warns that permitting IPOs for structurally loss-making companies could result in unfair risks being transferred to these investors. They stress that India’s capital markets should not serve as exit routes for businesses lacking financial soundness.

Dhairyashil Patil, the National President of AICPDF, has stated that the ongoing financial practices could inflict irreversible harm on both investors and the retail ecosystem. He has urged SEBI to take decisive action to ensure transparency and fairness in the market, highlighting the necessity for regulatory oversight to shield small investors from potential losses.

Ongoing Investigations by the Competition Commission

The AICPDF has submitted formal complaints to the Competition Commission of India, alleging predatory pricing and anti-competitive behaviour by quick-commerce platforms. These complaints are currently under investigation, with the CCI seeking additional evidence to evaluate the claims. The federation argues that proceeding with IPO approvals while these investigations are still active raises serious concerns regarding material disclosure and investor protection.

The AICPDF believes that allowing IPOs during ongoing competition-law investigations could result in regulatory arbitrage, where companies might exploit the circumstance to their advantage at the expense of investors. They urge SEBI to carefully consider the implications of these investigations before approving any new IPOs within the quick-commerce sector.

The Call for Regulatory Action

Given these concerns, the AICPDF is advocating for urgent regulatory action from SEBI. They argue that the current practices in the quick-commerce sector are detrimental not just to small retail investors but also to the livelihoods of millions of kirana store owners across India. The federation emphasizes that predatory pricing, which is funded by investor money, threatens the viability of these small businesses.

Patil reiterated SEBI’s constitutional responsibility to ensure a fair and transparent market environment. He urged the regulator to intervene decisively to protect both investors and the broader retail ecosystem from the risks posed by loss-making quick-commerce companies. The AICPDF’s appeal for a pause on IPO approvals reflects growing concerns about the sustainability of business models that depend heavily on external funding rather than sound financial practices.

Digihunt is not a financial advisor and this is not investment advice.

As Saudi Arabia embarks on its ambitious Vision 2030 initiative, the economic landscape for residents is experiencing substantial changes. With a focus on diversifying the economy, the cost of living is evolving, impacting both citizens and expatriates. While inflation remains modest at around 2.3%, rising housing costs and shifting wage dynamics are creating financial pressures that residents must navigate in one of the Gulf’s most rapidly growing economies.

Inflation Steady but Cost Pressures Persist

Saudi Arabia’s annual inflation rate stands at approximately 2.3% as of mid-2025, reflecting a slight increase from earlier in the year. This rise is largely driven by escalating housing costs and rents, which have surged by about 7%. Conversely, prices for transportation and certain consumer goods have decreased, offering some relief. The Consumer Price Index (CPI) shows significant increases in categories such as housing, water, electricity, gas, and fuel. Given that housing comprises a substantial portion of household expenses, these rising costs significantly impact everyday financial obligations for residents.

Housing: A Major Component of Living Costs

In major urban centers like Riyadh and Jeddah, rental prices continue to rise, fueled by strong demand for residential properties amid rapid urbanization and infrastructure development. To alleviate the burden on tenants, Saudi authorities have announced a five-year freeze on rent increases in Riyadh, aimed at curtailing the rapid escalation of housing costs. For numerous households, especially expatriates who typically pay rent directly, housing remains the largest monthly expense. The cost of renting a one-bedroom apartment can range from SAR 2,000 to SAR 8,000 ($540 to $2,160), with larger units or accommodations in compounds demanding even higher prices. This trend underscores the ongoing challenges residents face in managing their housing budgets.

Everyday Expenses: What Families and Workers Are Paying

Beyond housing, the cost of living in Saudi Arabia varies significantly based on lifestyle and location. For instance, groceries for an individual average around SAR 747 per month (approximately $202), with staple items like rice, eggs, and milk remaining relatively affordable despite price increases in other areas. Utility costs and internet services are generally moderate compared to global standards, with monthly bills typically amounting to hundreds rather than thousands of riyals. Public transportation fares are low, and fuel prices are among the cheapest worldwide, contrasting sharply with many Western cities. Dining out contributes to daily expenses, with local restaurant meals proving quite affordable, while higher-end dining options reflect a broader range of urban lifestyle choices.

Wages vs. Costs: A Growing Disparity in Saudi Arabia

Despite the modest inflation rate, the cost of living is rising faster than wage growth, particularly for expatriates. Recent reports indicate that while overall inflation hovers around 2% to 2.3%, rental costs in key urban areas have escalated at much higher rates, placing added strain on household budgets. Expat salaries have stagnated, with annual raises not keeping pace with the increasing costs of housing, especially in competitive markets like Riyadh. This situation has prompted some foreign professionals to reevaluate their relocation packages and salary expectations, highlighting the growing disparity between wages and living expenses in the Kingdom.

As Saudi Arabia continues to navigate its economic transformation, the interplay between rising costs and stagnant wages remains a critical issue for residents, influencing their financial decisions and lifestyle choices.

Digihunt is not a financial advisor and this is not investment advice.

Railway Minister Ashwini Vaishnaw recently highlighted the significant advancements made in the development of the Vande Bharat sleeper train, showcasing its capabilities during speed trials. The train achieved a remarkable maximum speed of 180 km/h on the Kota-Nagda section of the Indian Railways network, with a demonstration that retained water glasses perfectly balanced throughout the test. This new sleeper variant aims to enhance long-distance travel across India, with plans for a wider rollout in the coming years.

Speed Trials and Testing

The Vande Bharat sleeper train has successfully completed its initial speed trials, reaching an impressive speed of 180 km/h. Railway Minister Ashwini Vaishnaw shared this milestone in a video posted on X (formerly Twitter), where he emphasized the train’s technological advancements. The trials were overseen by the Commissioner of Railway Safety, who monitored performance between the Kota and Nagda sections. A unique test showed that glasses of water remained undisturbed, highlighting the train’s smooth operation at high speeds.

Currently, two prototype rakes of the all-air-conditioned sleeper train are undergoing rigorous testing. Indian Railways is preparing for a significant transformation in long-distance rail travel, with plans to introduce over 200 Vande Bharat sleeper trains in the next few years. This initiative is backed by various manufacturing programs aimed at improving the rail network’s capacity and efficiency.

Manufacturing and Development Plans

The production of the Vande Bharat sleeper train involves collaboration among several key players in the industry. BEML, in partnership with the Integral Coach Factory (ICF), is developing ten sleeper train sets, while Kinet, a joint venture between Indian and Russian firms, is working on another ten sets. Additionally, a consortium consisting of Titagarh Rail Systems and BHEL has been awarded a contract to construct 80 sleeper variants. The ICF is also actively working on an in-house sleeper version of the Vande Bharat train, further diversifying options in this segment.

These developments are part of a larger strategy by Indian Railways to modernize its long-distance travel offerings. The introduction of the sleeper train is expected to provide passengers with a more comfortable and efficient travel experience, catering to the growing demand for overnight services.

Innovative Features of the Sleeper Train

The Vande Bharat sleeper train emphasizes passenger comfort and safety. The first two prototypes consist of 16 coaches, including 11 air-conditioned three-tier coaches, four air-conditioned two-tier coaches, and one air-conditioned first-class coach. Although the train is designed for semi-high-speed services, it can operate at speeds up to 160 km/h, with testing conducted at 180 km/h. Actual operating speeds will depend on track conditions across the Indian Railways network.

The sleeper coaches feature design elements inspired by European rolling stock, providing cushioned berths for added comfort. Amenities include low-intensity night lighting, audio announcements with visual displays, and CCTV surveillance for passenger safety. Advanced bio-vacuum toilets, accessible facilities for persons with disabilities, and shower cubicles are also included in the AC First Class coach.

Safety is a priority, incorporating indigenous KAVACH anti-collision technology and regenerative braking systems to enhance energy efficiency. Each coach comes equipped with fully sealed gangways, automatic interconnecting doors, individual reading lamps, charging sockets, and foldable refreshment tables. Furthermore, a Centralized Coach Monitoring System and emergency communication facilities will enhance the travel experience for passengers.

Digihunt is not a financial advisor and this is not investment advice.

The Reserve Bank of India (RBI) has implemented significant reductions in its key interest rates throughout 2025, totaling a decrease of 1.25 percent across four of its six monetary policy reviews. Newly appointed Governor Sanjay Malhotra referred to this period as a “rare Goldilocks period” for the Indian economy, marked by record-low inflation and robust growth exceeding 8 percent. However, he cautioned that while inflation is currently under control, it is anticipated to rise closer to the RBI’s target of 4 percent in the future.

Key Rate Cuts and Economic Growth

Under Governor Malhotra’s guidance, the RBI commenced rate cuts beginning in February to stimulate economic growth. The most significant reduction occurred in June, featuring a 0.50 percent cut attributed to favorable inflationary conditions. This proactive stance has been recognized for supporting the economy amid global challenges such as US tariffs and geopolitical transitions. Despite the encouraging growth figures, Malhotra noted that growth rates may moderate in the forthcoming months and inflation could align with the RBI’s target. The central bank’s policies are primarily directed by real GDP, accounting for inflation levels to ensure that monetary policy adapts to actual economic scenarios.

Regulatory Relaxations and Financial Stability

Throughout the year, the RBI has introduced various regulatory relaxations to enhance liquidity and support banks. These initiatives included enabling banks to finance corporate acquisitions abroad and revising previous regulations that limited certain banking activities. Malhotra highlighted that while maintaining financial stability remains crucial, it is vital that regulations do not obstruct economic growth. The central bank’s commitment to preserving adequate liquidity has helped alleviate the effects of narrowing net interest margins on banks. Furthermore, the RBI has shifted its focus towards customer-centricity, aiming for quicker resolution of consumer and business challenges.

Challenges and Currency Management

As the RBI celebrated its 90th anniversary in 2025, it encountered notable challenges, especially regarding the depreciation of the Indian rupee, which surpassed the 90 to a dollar mark. In response, the central bank sold over $38 billion in foreign exchange to stabilize the currency. Governor Malhotra pointed to the RBI’s robust foreign exchange reserves, exceeding $690 billion, as a buffer against market volatility. However, experts remain cautious regarding the future trajectory of the rupee, indicating that effective currency management will continue to be a vital focus for the central bank.

Looking Ahead: Economic Outlook for 2026

As 2025 comes to a close, the RBI’s strategies for 2026 will be closely scrutinized. Governor Malhotra has expressed optimism that inflation will remain low and manageable, with policy rates expected to remain low for an extended duration. The central bank’s capacity to navigate economic challenges while promoting growth will be pivotal in the coming year. With ongoing endeavors to streamline regulations and enhance financial stability, the RBI is poised to foster an environment conducive to economic expansion, even as it faces external pressures and domestic hurdles.

Digihunt is not a financial advisor and this is not investment advice.

After a year characterized by uneven growth, India’s consumption landscape is beginning to show signs of improvement, though the pace remains cautious. Business leaders are optimistic that demand will pick up by 2026, spurred by expected GST reductions, income tax benefits, and low inflation. However, concerns linger about the sustainability of this demand without corresponding increases in consumer income. Moreover, the rupee’s depreciation poses risks for import-dependent companies, which may lead to price hikes. Although some short-term gains from GST reductions are noticeable, executives are cautious about the long-term implications.

Current Consumption Trends

As India continues to recover economically, consumption is gradually gaining traction. Business executives are hopeful that a mix of factors, including GST cuts and monetary easing, will provide consumers with more disposable income. Nevertheless, they warn that these measures might not be enough to sustain demand in the long term. Attention is directed toward how these fiscal policies can result in increased consumer spending, particularly as inflation remains a concern. Companies are bracing for possible price increases, especially in sectors heavily affected by import costs and currency fluctuations.

Impact of Currency Fluctuations

Currency volatility presents a significant challenge for many businesses. Sandeep Sehgal from Panasonic Life Solutions India underscored the importance of intensifying localization efforts and optimizing costs to manage profit margins effectively. The rupee’s depreciation, coupled with rising commodity costs, is expected to drive up prices for essential goods. For instance, Kamal Nandi from Godrej Enterprises Group predicted a 5%-7% increase in air conditioner prices and a 3%-5% rise for refrigerators due to changes in energy efficiency regulations. These adjustments illustrate the broader challenges faced by companies in maintaining profitability while responding to market demands.

Short-Term Gains from GST Revisions

Recent GST revisions have offered a temporary boost to consumption, particularly in specific product categories. Angshu Mallick from AWL Agri Business highlighted that the reduction in GST has made products like margarine and soya nuggets more affordable, thereby fueling demand in these segments. However, industry leaders stress that while these changes are beneficial in the short term, they do not eliminate the need for consistent income growth among consumers. NS Satish from Haier Appliances India pointed out that long-term consumption growth will depend on factors such as employment stability and access to credit.

Future Outlook for Consumption

Looking forward, the outlook for consumption in India appears cautiously optimistic. Akhil Jain from fashion retailer Madame indicated that stable inflation, lower interest rates, and targeted tax relief could gradually uplift consumer sentiment, especially in urban areas. The ongoing digital transformation and a trend toward premium products are expected to further propel growth in the fast-moving consumer goods (FMCG) sector. As Sudhir Sitapati from Godrej Consumer Products emphasized, an increase in disposable income among consumers could become a catalyst for growth, paving the way for a stronger economic recovery in the coming years.

Digihunt is not a financial advisor and this is not investment advice.

Greg Abel is set to succeed the legendary Warren Buffett as the new leader of Berkshire Hathaway this week, marking a major transition for the investment powerhouse. Buffett, widely recognized as the world’s best investor, transformed Berkshire from a struggling textile firm into a massive conglomerate, with shares now valued at over $750,000. Even with an estimated wealth of around $150 billion, Buffett has donated over $60 billion in the last twenty years. As Abel steps into this crucial role, investors are closely watching how he will tackle the challenges of steering a company that has recently faced difficulties in sustaining its remarkable growth.

Abel’s Leadership Style and Changes Ahead

Since 2018, Greg Abel has been overseeing Berkshire’s non-insurance operations, and his leadership approach is expected to differ notably from Buffett’s. Analysts anticipate that while some modifications will occur, a complete overhaul of the company’s decentralized structure is unlikely. Abel is known for being more hands-on, holding company leaders accountable while challenging their performance assessments. Recently, he made significant changes, including appointing Adam Johnson, CEO of NetJets, to oversee all consumer, service, and retail businesses. This decision effectively creates a new division within Berkshire, enabling Abel to concentrate on manufacturing, utility, and railroad sectors.

Despite anticipated adjustments, Buffett will continue to play an active role as chairman, offering guidance and support to Abel. The decentralized model that has been key to Berkshire’s success is expected to remain intact. Abel’s management style may resonate positively with investors, particularly if it leads to improved performance while maintaining the company’s established culture.

Challenges in Finding New Acquisitions

Berkshire Hathaway has encountered challenges in making significant acquisitions in recent years, a situation attributed to its vast size. The recent $9.7 billion acquisition of OxyChem is considered inadequate to meaningfully affect the company’s profitability. Analysts highlight that as Berkshire expands, identifying new and substantial investment opportunities becomes increasingly complex. Investors are keen to see how Abel will navigate this challenge and whether he will lean toward a more traditional leadership style.

A critical concern for Abel will be managing Berkshire’s sizable cash reserves, currently at $382 billion. Traditionally, the company has preferred reinvesting profits over distributing dividends. However, if Abel fails to find productive opportunities for this cash, shareholders might advocate for dividends or stock buybacks to enhance share value. For now, Buffett’s considerable voting power affords Abel some leeway from immediate pressure regarding these important decisions.

Future Outlook for Berkshire Hathaway

Berkshire Hathaway’s diverse portfolio, which includes a variety of utilities and insurance companies, positions the company well for future growth. Its subsidiaries generally perform well during economic upturns, yielding consistent profits. Analysts are optimistic that many of these businesses can thrive independently and continue to succeed under Abel’s leadership. Chris Ballard, managing director at Check Capital, conveyed confidence about Berkshire’s future, asserting that the company is well-prepared to navigate this transition.

As Abel takes charge, there are ongoing discussions regarding potential changes in company leadership following the recent exit of Todd Combs, the investment manager and CEO of Geico. With Vice Chairman Ajit Jain, a crucial figure in the insurance division, now 74, the future leadership landscape at Berkshire may undergo evolution. However, many shareholders, including Ballard, view these changes as part of a natural progression rather than as a source of concern. As the company embarks on this new chapter, investors are eager to see how Abel will influence Berkshire Hathaway’s direction moving forward.

Disclaimer: Digihunt is not a financial advisor and this is not investment advice.

Shankh Airlines is poised to commence its flight operations in January, intending to connect Lucknow with major cities such as Delhi and Mumbai. The airline will initially operate with a fleet of three Airbus aircraft and aims to expand its services throughout Uttar Pradesh. Chairman Shravan Kumar Vishwakarma envisions making air travel more accessible for middle-class passengers and first-time flyers, challenging the perception that flying is a luxury. With aspirations for international flights by 2028 or 2029, Shankh Airlines marks a significant development in the aviation sector.

Initial Operations and Fleet Expansion

Shankh Airlines plans to begin its services in the first half of January with three Airbus aircraft in its initial fleet. The focus will be on connecting Lucknow to key metropolitan areas, including Delhi and Mumbai. According to Chairman Shravan Kumar Vishwakarma, the airline will also serve multiple destinations across Uttar Pradesh during this initial phase. He mentioned plans for fleet expansion, with two additional aircraft expected to join within the next month and a half. Vishwakarma expressed a vision of extending coverage across the entire country, with international operations anticipated by 2028 or 2029.

Vision for Accessible Air Travel

Vishwakarma emphasized that Shankh Airlines aims to make air travel feasible for middle-class individuals and first-time flyers. He insists that flying should not be seen as a luxury, but rather as a common mode of transportation, akin to buses or tempos. The airline’s mission is to shift the perception of air travel, enhancing its inclusivity. Reflecting on his journey, he shared that the inspiration to enter the aviation sector emerged about four years ago. He invested time in understanding the requisite processes, regulations, and requirements to establish an airline. What started as a mere idea has evolved into a real venture.

Background and Entrepreneurial Journey

Shravan Kumar Vishwakarma hails from a modest middle-class background where dreaming big was often deemed unrealistic. He recounted that growing up, merely earning a livelihood was considered enough, with aspirations beyond that being uncommon. Despite limited formal education and a lack of interest in academics, Vishwakarma’s entrepreneurial spirit led him to explore various small businesses, many of which faced hurdles. His business journey accelerated in 2014 when he entered the cement trade, followed by ventures in TMT steel, mining, and transport. Currently, he oversees a fleet of over 400 trucks, describing his growth as gradual and organic, evolving without grand planning.

Funding and Future Aspirations

Vishwakarma highlighted that aviation is one of the fastest-growing sectors, primarily due to its strong cash flow. He pointed out that the industry operates without a credit system, which can lead to the demise of many businesses reliant on credit. Shankh Airlines has secured funding through its parent company, acquiring aircraft on lease and financing through external entities. Vishwakarma noted that the airline is not focused on competing for market shares but rather on self-improvement. Regarding ticket pricing, he assured that fares would remain stable during festival seasons, although business-class tickets may be priced higher than competitors’. Furthermore, he expressed a commitment to creating job opportunities for the youth, encouraging them to pursue their aspirations without fear of judgment.

Digihunt is not a financial advisor and this is not investment advice.

India’s mergers and acquisitions (M&A) landscape is set for further growth in 2026, following a strong performance in 2025. Domestic consolidation reached an impressive $104 billion in 2025, marking the highest level in two years. Inbound deals also surged to $30 billion as banks from East Asia and West Asia significantly invested in Indian financial institutions. Furthermore, outbound transactions totaled $22 billion, the highest in a decade, primarily owing to Tata Motors’ overseas acquisitions. Experts anticipate that robust corporate confidence and healthy balance sheets will drive additional M&A activity across various sectors in the upcoming year.

Strong Domestic Consolidation and Inbound Investments

The Indian market has experienced a remarkable rise in domestic consolidation, with companies actively pursuing strategic growth opportunities. This trend is expected to persist as firms explore both local and international avenues for expansion. Amit Thawani, head of investment banking at Nomura in India, highlighted that while conglomerates have historically dominated the M&A landscape, mid-cap companies are increasingly participating, indicating a broader engagement in the M&A arena that reflects evolving market dynamics.

Inbound M&A activity continues to thrive, especially in sectors like financial services, consumer goods, and infrastructure. Rahul Mody, co-head of investment banking at Ambit, pointed out that these sectors consistently attract foreign investors due to their long-term potential. However, the focus of inbound M&A is shifting from volume to value. Sumeet Abrol, a partner at Grant Thornton Bharat, noted that while deal volumes have decreased over the past three years, the value of transactions has risen significantly, suggesting that foreign investors are becoming more discerning and willing to invest larger amounts in fewer deals.

Optimism for Continued Growth in 2026

The M&A outlook for 2026 appears positive, driven by several factors. Increasing disposable incomes and consumption growth are expected to create a conducive environment for deal-making. The Indian government has also taken steps to facilitate M&A transactions by allowing banks to finance these deals and raising foreign direct investment limits in the insurance sector. These initiatives are aimed at enhancing the attractiveness of the Indian market for foreign investors.

One notable upcoming deal is the proposed $2.3 billion acquisition of Encora by Indian IT firm Coforge. This transaction will be among the first to occur under revised foreign exchange regulations that allow for indirect foreign ownership, signaling a strong commitment to fostering a favorable environment for M&A activity and boosting investor confidence.

Sectoral Trends and Future Prospects

As the M&A landscape evolves, various sectors are expected to significantly contribute to future activity. While financial services, technology, and healthcare have traditionally led, a broader range of industries is anticipated to engage in the coming year. S Sundareswaran, Morgan Stanley’s India head of M&A, observed that the expansion of inbound M&A will progress beyond financial services and industrials, despite some foreign players occasionally exiting the market.

The shift toward a value-driven model in inbound M&A indicates a more selective approach by foreign investors. This trend is likely to persist as companies align their investments with policy-driven sectors that promise long-term growth. Bharat Anand, a senior partner at Khaitan & Co, suggested that expectations of lower interest rates from the US Federal Reserve could further bolster M&A activity, as reduced borrowing costs typically encourage more transactions.

Digihunt is not a financial advisor and this is not investment advice.

Gold and silver prices are gearing up for their best annual performances since 1979, despite recent market fluctuations. Following a significant drop in silver prices, which fell nearly 9% on Monday, analysts remain optimistic about the long-term prospects for both precious metals. Geopolitical tensions and trade uncertainties have driven strong demand for gold, while silver has garnered increased interest due to supply constraints and anticipated export restrictions from China.

Market Dynamics and Recent Trends
Earlier this week, gold prices saw a minor recovery after a notable drop of 4.5%, marking the largest single-day loss for the metal since October. This downturn was primarily due to increased margin requirements on gold and silver futures established by the Chicago Mercantile Exchange (CME) Group. The adjustments sparked widespread profit-taking and a rebalancing of portfolios among traders. Despite this setback, both gold and silver are poised for impressive annual gains, supported by various factors that have enhanced safe-haven demand. Growing uncertainties surrounding U.S. tariffs and escalating geopolitical tensions in the Middle East and key Asian regions have significantly bolstered gold prices throughout the year.

Silver’s Supply Challenges and Price Movements
Silver has displayed resilience in the market, particularly following a significant squeeze in the London market two months prior. This squeeze was intensified by a surge in flows into exchange-traded funds (ETFs) and exports to India, depleting already low inventories. Although London’s vaults have experienced a resurgence in inflows, much of the available silver is currently concentrated in New York. Traders are closely watching a U.S. investigation that may result in tariffs or other trade restrictions, adding to market uncertainty. Additionally, China’s recent announcement regarding export curbs on processed silver, effective from January, has further fueled investor bullishness.

Future Outlook for Gold and Silver
Looking forward, analysts anticipate that gold and silver prices may stay stable with limited downside risk as strong fundamentals continue to shape market sentiment. The global silver market is expected to encounter a fifth consecutive year of supply deficits, with projections indicating that these deficits could widen by 2026. Currently, the deficit is estimated to represent about 8-10% of annual consumption. The anticipated export curbs from China are expected to contribute to an incremental loss of 400-500 tonnes in silver supply for the upcoming year, which would further support positive sentiment within the market.

Investment Strategies and Market Volatility
As the new year approaches, market participants are encouraged to consider buying on dips, as volatility may increase during the holiday-shortened week ahead. Key macroeconomic indicators, including the minutes from the Federal Open Market Committee (FOMC) meeting, are set to influence market movements. While trading volumes may remain low, the favorable outlook for precious metals makes it a wise time for investors to explore opportunities in gold and silver as they head into the new year.

Disclaimer: Digihunt is not a financial advisor and this is not investment advice.