India's economy is on a robust growth trajectory, with projections estimating a 7.3% growth for the second quarter (July-September 2025). This positive outlook is significantly boosted by strong rural demand, increased government spending, and better export numbers. Economists surveyed anticipate growth figures ranging between 6.9% and 7.7%, while the Reserve Bank of India (RBI) has placed its estimate at approximately 7%. The official Gross Domestic Product (GDP) numbers are expected to be released on November 28. Key drivers of this momentum include a 4.1% rise in industrial output and a nearly 5% jump in manufacturing. Government investment has surged by an impressive 31%, and exports have rebounded with an almost 9% increase after last year's decline.
Adding to the economic cheer, festive demand has continued to be strong even after the Diwali season, marking a significant departure from previous years where demand typically tapered off. This sustained demand is attributed to a surge in weddings, higher disposable income due to cuts in GST and standard income tax rates, and an early onset of winter. Data from various companies across the consumption sector, including Lifestyle International, LG Electronics, and Titan, indicate a 10-20% year-on-year increase in aggregate demand during the four-week post-Diwali period.
On the stock market front, Indian benchmark indices, Sensex and Nifty, are expected to commence trading on November 17 with a positive bias. This optimism follows the results of the Bihar elections, which have improved sentiment regarding the stability of the coalition government at the Centre. The Nifty 50 recorded a weekly gain of 1.64% and formed a bullish candle, suggesting underlying strength. The previous trading session saw a strong rebound, particularly in PSU bank stocks, which led the rally with a 1.17% gain. However, IT, auto, metal, and realty sectors experienced some declines. Analysts are optimistic about Nifty's trajectory, with sustained strength above 26,100 potentially pushing it towards its previous all-time high of 26,277.
In terms of policy and business environment, Indian states are actively implementing a wave of reforms to simplify business operations and manufacturing. These changes include easing land and labor rules and limiting compliance checks, significantly improving the ease of doing business. States like Madhya Pradesh, Andhra Pradesh, and Tripura are at the forefront of these transformations.
Conversely, wealthy Indian families are encountering new challenges in diversifying their investments by parking wealth abroad through GIFT City funds. The regulator for the International Financial Services Centre (IFSC) has mandated that fund managers ensure their funds cater to a diverse range of investors rather than solely to individual families. This regulatory stance aims to clarify that Alternative Investment Funds (AIFs) are intended as pooled investment vehicles with multiple investors, not as investment arms for single families.
In corporate news, Bondada Engineering has announced a new project order from Maharashtra State Power Generation Company (Mahagenco) for an integrated solar engineering, procurement, and construction project. Muthoot Finance also reported its Q2 FY26 consolidated net profit at Rs 23.4 billion. Conversely, CLSA downgraded Jubilant Foodworks, while Jefferies maintained a 'buy' rating on Voltas despite its Q2 misses. Tata Motors reported a loss of ā¹867 crore in Q2 FY26, despite a 6% increase in revenue.