India GDP Growth 2026: Economy Beats Forecasts with Strong 7.7% Expansion in FY26; Q4 Grows 7.8%

  India has once again showcased its economic resilience. The country recorded a robust 7.7% GDP growth in fiscal year 2025-26 (FY26), surpassing both the previous year’s 6.5% and the government’s Second Advance Estimate of 7.6%. This performance reaffirms India’s position as the world’s fastest-growing major economy despite global headwinds like geopolitical tensions and volatile crude oil prices. According to provisional estimates released by the Ministry of Statistics & Programme Implementation (MoSPI) on Friday, the Indian economy continues to demonstrate strong momentum. Key Highlights of India’s FY26 GDP Numbers Annual GDP Growth : 7.7% in FY26 (up from 6.5% in FY25) Q4 FY26 Growth : 7.8% (steady from the previous quarter) Real GDP Level : ₹323.12 lakh crore in FY26, compared to ₹299.89 lakh crore (First Revised Estimate) in FY25 Real Gross Value Added (GVA) : Expanded by 7.9% for the full year Nominal GVA : Grew 9.1% in FY26 Q4 GVA Performance : Real GVA a...
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NIFTY50 Closes at 24,890, SENSEX Drops 556 Points Amid Realty, IT Weakness

The Indian stock market extended its losing streak for the fifth straight session on Thursday, September 25, 2025, driven by weak global cues and heavy selling in realty and IT stocks. Persistent foreign investor outflows and concerns over a steep increase in U.S. H-1B visa fees further soured investor sentiment, contributing to the bearish mood.

Market Performance Overview

At the close of trading, the S&P BSE SENSEX settled at 81,159.68, down 555.95 points or 0.68%. Similarly, the NSE NIFTY50 index ended at 24,890.85, declining 166.05 points or 0.66%. The broader market saw significant selling pressure, with 3,125 stocks traded on the NSE. Of these, 912 advanced, 2,124 declined, and 89 remained unchanged, reflecting a broadly negative session.

Trent emerged as the top loser on the NIFTY50, underscoring the pressure on select heavyweights. Realty and IT sectors were the primary drags, with investors cautious amid global uncertainties.

Key Factors Impacting the Market

1. Foreign Investor Outflows

Foreign Institutional Investors (FIIs) continued their selling spree, offloading shares worth ₹2,425.75 crore on Wednesday, according to exchange data. In contrast, Domestic Institutional Investors (DIIs) provided some support, purchasing equities worth ₹1,211.68 crore on a net basis. However, the net selling by FIIs has been a persistent headwind for the Indian market, contributing to the ongoing decline.

2. U.S. H-1B Visa Fee Hike Concerns

The sharp increase in U.S. H-1B visa fees has raised concerns, particularly for the IT sector, which relies heavily on U.S. markets for revenue. This development has added to the bearish sentiment, as investors worry about potential cost pressures and operational challenges for Indian IT companies.

3. Weak Global Cues

Global markets mirrored the cautious sentiment. In Asia, most indices ended lower, tracking overnight losses on Wall Street. Key Asian market performances included:

  • Japan’s Nikkei: Up 0.22%, bucking the regional trend.

  • Hong Kong’s Hang Seng: Down 0.17%.

  • South Korea’s KOSPI: Marginally lower by 0.03%.

  • China’s Shanghai Composite: Closed flat.

  • Taiwan Weighted: Fell 0.66%.

In the U.S., the AI-driven rally showed signs of fatigue, with the S&P 500 declining 0.3%, the Nasdaq dropping 0.34%, and the Dow Jones slipping 0.4% on Wednesday. These global developments influenced sentiment in the Indian market, as investors remained wary of overvalued segments and macroeconomic uncertainties.

Sectoral and Stock Highlights

The realty and IT sectors bore the brunt of the selling pressure, with profit-taking evident after recent gains. The broader market’s performance reflected a cautious approach, with more stocks declining than advancing. Investors are closely monitoring upcoming economic data and corporate earnings for cues on future market direction.

What’s Next for the Market?

The Indian market’s near-term trajectory will likely hinge on several factors:

  • FII Activity: Continued selling by foreign investors could keep pressure on indices, though DII buying may provide some cushion.

  • Global Market Trends: Developments in the U.S. and Asian markets, particularly around interest rate expectations and AI-driven valuations, will remain critical.

  • U.S. Visa Policy Impact: Clarity on the H-1B visa fee hike and its implications for Indian IT firms could influence sectoral performance.

  • Domestic Economic Data: Upcoming macroeconomic indicators, such as inflation and industrial output, will also play a role in shaping investor sentiment.

Conclusion

Thursday’s session underscored the challenges facing the Indian stock market, with the NIFTY50 and SENSEX posting losses amid weak global cues and sector-specific pressures. As realty and IT stocks weigh on sentiment, investors will need to navigate foreign outflows, U.S. policy changes, and global market dynamics carefully. Staying informed on these developments will be key to making sound investment decisions in the coming days.

Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. Always conduct thorough research or consult a financial advisor before making investment decisions.

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