Welcome to the latest update from Yajna Investment Academy. This article covers global and India-specific stock market news, including key economic indicators, company performances, and sectoral trends.
Global Market Overview
- The global markets were mostly closed on January 1 and 2, 2026, with India being one of the few markets open on January 1.
- Sovereign wealth funds and pension funds, which manage assets worth approximately $15 trillion individually and $60 trillion collectively at government and state levels, have been shifting their investments.
- In 2025, sovereign wealth and pension funds invested around $132 billion in the US alone, which is about half of their total $260-270 billion investments globally.
- There has been a 28% drop in investments by sovereign funds in countries like India, China, and Indonesia compared to 2024.
- The US market's strong growth, especially driven by AI innovations, has attracted foreign institutional investors, leading to better market performance in the US compared to India.
- Valuation perspectives also favor the US market, which is trading at a premium compared to India.
- BYD, the world's largest electric car company based in China, showed a significant slowdown in growth in 2025, with only a 7% increase, the weakest in five years.
- December sales for BYD fell by 18%.
- BYD has surpassed Tesla in volume growth, but the Chinese domestic market is slowing down due to real estate issues and other economic factors.
- While China is performing well in exports, its domestic market is currently a concern from a growth perspective.
India-Specific Economic Indicators
GST Collections
- India's Goods and Services Tax (GST) collection for December 2025 stood at Rs 1.75 lakh crore, reflecting a 6% year-on-year growth despite GST rate cuts announced in October 2025.
- Year-to-date GST growth is approximately 6.87%, indicating a decent economic performance.
- GST collections serve as a leading indicator of economic health, reflecting company performance and consumption trends.
- The government announced additional excise duties and health and national security cess on cigarettes, beedis, pan masala, and tobacco products effective February 1, 2026.
- This move replaced the earlier compensation cess and has led to a decline in stocks of companies like ITC and Godfrey Phillips.
- Alcohol and tobacco stocks also saw some declines due to these tax changes.
Insurance Sector Concerns
- The Reserve Bank of India (RBI) and the Finance Ministry have raised concerns about high commissions in the insurance sector, which affect affordability and penetration.
- The Insurance Regulatory and Development Authority of India (IRDAI) has been given more powers under the new insurance bill.
- The goal is to achieve insurance coverage for all by 2047, making affordability a critical factor.
Stock-Specific News
Sapphire Foods and Devyani International Merger
- Sapphire Foods and Devyani International, which manage major quick-service restaurant brands like Pizza Hut and KFC in different regions of India, are merging.
- Devyani will issue 177 shares for every 100 shares of Sapphire Foods.
- The merger is expected to complete within 12 to 15 months after regulatory approvals.
- The combined entity will operate nearly 3,000 outlets in India and some outside India.
- The quick-service restaurant sector has been underperforming recently, and such mergers are common during market slowdowns.
Vodafone Idea Stock Movement
- Vodafone Idea's stock saw a sharp decline but rebounded by 10% after government notifications related to AGR dues.
- The market reaction suggests investors are cautiously optimistic pending further details.
- The auto sector has shown strong performance, with an 18% increase in the auto index over the last six months.
- Key companies reported significant year-on-year sales growth in December 2025:
- Mahindra & Mahindra: 25% increase
- Ashok Leyland (commercial vehicles): 26% increase
- Escorts Kubota (tractors): 38% increase
- Tata Motors (passenger vehicles): 14% increase
- The GST reforms have positively impacted auto sales volumes across segments:
- Tractors: 27% volume growth
- Commercial vehicles: 16% volume growth
- Passenger vehicles: 12% volume growth
- Two-wheelers: 11% volume growth
- Despite the non-festive season, auto sales have remained robust, indicating a positive outlook for the sector.
Power Consumption
- Power consumption in India rose by 7% in December 2025 to 138.39 billion units.
- The increase is attributed to a cold wave, which reduced the summer peak power consumption compared to 2024.
- Peak power consumption in 2024 was 250 GW, while in 2025 it was around 242 GW.
Summary and Outlook
- Foreign institutional investors are favoring the US market due to strong AI-driven growth and innovation, leading to reduced investments in India and other emerging markets.
- India's GST collections and auto sales indicate steady economic growth despite some challenges.
- Taxation changes in tobacco and related products are impacting stock prices in those sectors.
- The insurance sector is under regulatory scrutiny to improve affordability and penetration.
- Mergers in the quick-service restaurant sector reflect market consolidation during slower growth periods.
- Overall, the Indian market shows resilience with positive indicators in consumption and industrial activity.
Stay tuned for more updates and detailed analyses in our upcoming reports.
