The past week has witnessed several significant developments in India’s personal finance sector, impacting investors, consumers, and policymakers alike. Here are the key highlights: 1. Stock Market Projections for 2025: A Reuters poll forecasts that India’s benchmark Sensex index is expected to rise by approximately 9% by the end of 2025. This marks a slowdown compared to previous years, attributed to concerns over slowing consumer demand, reduced corporate earnings, and an anticipated influx of new shares into the market. Despite these challenges, Indian markets are projected to remain among the top five globally in returns next year. 2. Bajaj Finance’s Market Performance: Bajaj Finance Ltd. experienced a 1.05% decline in its share price, closing at ₹7,073.00. This movement occurred amidst a general market downturn, with the BSE SENSEX Index falling by 0.62% to 80,182.20. Despite the dip, Bajaj Finance’s performance remains a focal point for investors monitoring the financial sector. 3. Call for Increased Taxation on the Super-Rich: French economist Thomas Piketty has urged India to implement higher taxes on its wealthiest citizens to address significant income inequality. He proposes a 2% wealth tax on individuals with assets over ₹100 million and a 33% inheritance tax on property of similar value. However, India’s chief economic adviser cautions that such measures could lead to increased capital outflows. 4. Potential GST Reduction on Food Delivery Services: The GST Council is considering reducing the Goods and Services Tax on food delivery charges from e-commerce platforms like Zomato and Swiggy from 18% to 5%. This proposal aims to make food delivery more affordable for consumers and is expected to take effect on January 1, 2025. 5. Extension of Algorithmic Trading to Retail Investors: The Securities and Exchange Board of India (SEBI) plans to extend algorithmic trading opportunities to retail investors, a practice previously limited to foreign funds and proprietary traders. Draft guidelines propose that algorithms be registered with stock exchanges and categorized for transparency, aiming to balance market access with investor protection. 6. Rising Defaults Among Retail Borrowers: Indian lenders are facing an increase in defaults among over-leveraged retail borrowers, particularly in personal loans and micro-credit segments. This trend has led to a rise in bad loans for major banks, prompting concerns about the sustainability of current lending practices and potential impacts on profitability. 7. Navi Finserv Resumes Loan Disbursements: The Reserve Bank of India has lifted the ban on Navi Finserv, allowing the non-banking financial company to resume sanctioning and disbursing new loans. The ban was initially imposed due to concerns over “usurious” pricing practices, but following compliance measures, Navi Finserv is now permitted to operate fully. 8. India’s IPO Market Outlook for 2025: India’s Initial Public Offering (IPO) market has seen substantial growth, with 298 companies going public in 2024, raising ₹1.4 trillion—a 140% increase from the previous year. Notable upcoming IPOs in 2025 include major companies like LG and Flipkart. However, global market volatility poses potential challenges to sustaining this momentum. These developments underscore the dynamic nature of India’s personal finance landscape, highlighting the need for investors and consumers to stay informed and exercise due diligence in financial decision-making. References • India File: In 2025, stock markets face a glass half full • Bajaj Finance underperforms Wednesday when compared to competitors • India must do more to tax its super-rich, France’s Piketty says • India tax panel may consider lowering GST on online food delivery fees, report says • India’s Sebi signals extension of algo trading to retail investors • Indian lenders face rising defaults from over-leveraged retail borrowers • India cenbank removes ban on Navi Finserv from sanctioning, disbursing new loans • The India IPO party floats into 2025 Post navigation Is a Money Market Fund the Right Investment for You? Indian Stock Market Scene for the First 2 Weeks of 2025 & the Road Ahead
