Concerns that had surfaced late last year—stretched valuations, weakening consumption, and slowing earnings growth—intensified amid a sluggish recovery in domestic demand. Companies within the Nifty 50 reported single-digit earnings growth for six consecutive quarters, with year-on-year growth of just 2% in the September 2025 quarter, according to the Motilal Oswal report. However, policy transmission was gradual, with limited near-term impact on growth or earnings. The derivatives market too saw tighter risk controls, including upfront collection of option premiums, higher expiry-day margins, and stricter intraday risk checks. According to an EY note released in October, these reforms are expected to reshape IPO strategies from pre-listing planning to postlisting compliance.

Source: Economic Times December 29, 2025 04:39 UTC