Indian equities weathered 2025 without unravelling, but the market also revealed its limits. The Sensex moved within a 15% band through the year and ended up about 8%, reflecting steady confidence but little risk appetite. At just 1% below its September 2024 peak, the market is priced for optimism, not surprises.
As 2026 approaches, direction will hinge on demand and supply rather than sentiment alone. The first test is the AI boom, which has driven global stock gains but rests on high expectations of future earnings. The second is market breadth. Large caps have recovered, but mid and small caps still trail their highs. The third question is whether foreign investors return, as domestic mutual funds shoulder most buying. Retail participation remains crucial, yet signs of slowing account additions suggest fatigue. Finally, a crowded IPO pipeline will test how much risk capital the market can absorb.
Read this Plain Facts piece to understand where the markets are headed to in 2026.
Market Watch:
📉 Markets slipped amid low volumes and weak cues on Monday, 29 December, as thin trading and the absence of fresh triggers kept investors cautious, pointing to a near-term consolidation phase.
🔻 Benchmarks extended their losing streak, with the Sensex falling 346 points (0.41%) to 84,695.54—its fourth straight decline—while the Nifty 50 dropped 100 points (0.38%) to 25,942.10, logging a third consecutive day of losses amid continued FII selling.
Get a headstart on tomorrow’s print edition:
Ola Electric’s sales footprint shrinks as stores bet on home inverters
Mint Explainer | How the US economy defied expectations in 2025
Budget 2026: To ease infra funding crunch, govt mulls ₹25,000 crore risk guarantee fund
Saregama-Bhansali deal: How Bollywood is learning to separate art, ownership and risk
Premium Reads
Coforge-Encora deal: Will India’s largest IT acquisition reward investors?
Cancer insurance: Why standard mediclaim beats critical illness plans
Infosys first major IT outsourcer to outline a cut in fresher hiring as automation scales
Today’s Long Read:
Long Story, a much-loved Mint feature, is published every weekday. Before the next piece hits the stands, here’s your exclusive glimpse into what’s brewing on our desk. Catch the story here.
From AI to history: The books India’s business leaders loved in 2025
We asked industry captains, entrepreneurs, venture capitalists and policy makers to recommend books they loved to read in 2025. This curated collection is defined by four core themes: timeless human patterns, the science of scale, AI disruption and intellectual humility.
Today in History: An Idea that Changed the Subcontinent
On 29 December 1930, Sir Muhammad Iqbal, addressing the All-India Muslim League in Allahabad, argued that India’s Muslims were a distinct nation deserving political autonomy. His speech proposed grouping Muslim-majority provinces in the north-west, laying the intellectual groundwork for the two-nation theory. Though not a direct call for Pakistan, the address later became central to the idea of a separate Muslim homeland and influenced leaders like Muhammad Ali Jinnah.