News Nook: Jan 1, 2026

 Indian Sector Specific News:

A) BFSI:

1) Finance Ministry notifies rules for 100% FDI in Insurance sector

• The Finance Ministry has issued new rules to implement 100% foreign direct investment (FDI) in India’s insurance companies, replacing the earlier 74% cap and updating regulatory requirements like board and key executive Indian residency norms.
• This move aims to attract more foreign capital, technology, and global best practices into the Indian insurance market while maintaining some domestic leadership conditions.
• Source: The Economic Times

2) RBI Report on Indian Financial System 2025: Strengthening Stability Amid Global Uncertainty

• The RBI’s Financial Stability Report highlights India’s financial system as resilient and stable despite global uncertainties, supported by strong domestic consumption, low NPAs, high bank capital, and steady credit growth—especially to MSMEs and fintech-driven lending.
• Banks, NBFCs, insurance companies, and markets remain well-capitalised and liquid, with new initiatives like the FREE-AI framework ensuring ethical use of artificial intelligence and policy focus shifting towards risk-based supervision and digital financial stability.
• Source: Reserve Bank of India (Financial Stability Report, December 2025)

3) SEBI Cancels Research Analyst Registration After Holder Says He Runs Grocery Shop

• SEBI cancelled the registration of a research analyst after he informed the regulator that he runs a small grocery shop and is not involved in securities market activities, despite holding a valid research analyst registration since 2018.
• The action followed misuse of his SEBI registration number by an unregistered firm that falsely claimed SEBI certification, offered assured returns, and collected investor funds, leading SEBI to order refunds of over ₹30 lakh and impose market bans and penalties on the firm.
• Source: LiveLaw

4) FMCG Distributors’ Body Urges SEBI to Pause IPOs of Loss-Making Quick-Commerce Firms

• FMCG distributors’ body AICPDF has asked SEBI to temporarily halt IPOs of loss-making quick-commerce and related e-commerce companies, citing risks to small investors and concerns over weak profitability and cash flows.
• The body said valuations are being driven by market share and gross merchandise value rather than actual earnings, and urged SEBI to wait until ongoing Competition Commission of India (CCI) investigations are concluded.
• Source: Moneycontrol

B) Automobile:

1) Two-Wheeler and Passenger Vehicle Sales Hit All-Time Highs in 2025

• India recorded historic vehicle sales in 2025, with two-wheeler registrations rising 7% to 20.2 million units and passenger vehicle registrations growing 9% to 4.38 million units, both the highest ever.
• Strong demand momentum has boosted automaker confidence, with analysts expecting companies to reduce discounts in coming months to protect profit margins.
• Source: Mint

C) Pharma:

1) IAIRO to Begin Operations from 1 January 2026 under PPP Model in Gujarat

• Gujarat will launch the Indian AI Research Organization (IAIRO) from 1 January 2026 in GIFT City, Gandhinagar, becoming the first state to establish a national AI research body under a public–private partnership model.
• IAIRO will function as a non-profit entity with a planned ₹300 crore budget over five years, focusing on AI research, product development, talent creation, and collaboration across government, industry, startups, and academia.
• Source: Information Department, Government of Gujarat

D) Agriculture:

1) Union Agriculture Minister Shivraj Singh Chouhan on Three-Day Visit to Maharashtra

• Union Minister Shri Shivraj Singh Chouhan is visiting Maharashtra from 31 December 2025 to 2 January 2026 to engage with farmers, villagers, students, and officials in Ahilya Nagar and Nashik, focusing on agriculture, rural development, women’s empowerment, and youth opportunities.
• The visit includes farmer interactions, a Gram Sabha at Loni Budruk near Shirdi on New Year’s Day, and programmes at Krishi Vigyan Kendras, highlighting government initiatives on natural farming, irrigation, crop diversification, technology adoption, and rural livelihoods.
• Source: Press Information Bureau (PIB)

2) Aadhaar Authentication Made Mandatory for NMNF Benefits

• Farmers must now complete Aadhaar authentication to receive benefits under the National Mission on Natural Farming (NMNF), which provides financial support of ₹4,000 per acre per year for two years to eligible farmers practicing natural farming.
• Farmers without Aadhaar can apply for enrolment and use temporary ID proof meanwhile; alternative verification methods will be available to ensure genuine beneficiaries are not denied benefits, except in Sikkim, Lakshadweep, and Chandigarh.
• Source: Ministry of Agriculture & Farmers Welfare

3) India’s Floriculture Sector Set for Global Breakout, Says IBEF

• India has emerged as the world’s second-largest flower producer, with growing exports, modern farming practices, and strong policy support transforming floriculture into a high-value, employment-generating agri-export industry.
• Floriculture exports have risen steadily to nearly ₹2,000 crore, driven by demand from the US, Europe, and West Asia, while states like Tamil Nadu, Karnataka, and West Bengal lead production and value-chain integration.
• Source: India Brand Equity Foundation (IBEF)

E) Energy:

1) Guyana Invites Indian Companies to Bid in Oil Blocks Auction in 2026

• Guyana has invited Indian oil and energy companies to participate in its upcoming 2026 oil blocks auction, aiming to deepen energy cooperation and attract global expertise in hydrocarbon exploration.
• The move reflects Guyana’s push to expand upstream investments and leverage India’s technical capabilities as it continues to emerge as a major oil-producing nation.
• Source: ANI

Indian Economy and Government Initiatives:

• The RBI said the Indian economy continues to grow at a strong pace, supported by robust domestic demand, moderate inflation, and prudent macroeconomic policies despite global uncertainties. It noted that banks, NBFCs, and the insurance sector remain resilient with strong balance sheets, while cautioning about external risks and a gradual rise in household debt.
• India enters 2026 as the world’s fourth-largest and fastest-growing major economy, having weathered tariff shocks and global uncertainty through policy reforms, domestic demand strength, and strategic diversification of trade and investment.
• EY projects that India will remain the fastest-growing large economy, reaching a GDP of USD 26 trillion and per capita income of over USD 15,000 by 2047, driven by its young workforce, economic reforms, and rising global competitiveness.

Indian Stock Market Udpate:

• Indian stock markets ended flat on the first trading day of 2026 amid high volatility.
• Sensex closed marginally lower while Nifty hovered around the 26,150 level.
• FMCG stocks saw sharp selling, with the sector index falling about 3 percent.
• Telecom, auto, IT, metal, power, and PSU bank stocks outperformed with gains of up to 1.5 percent.
• Midcap stocks edged higher, while smallcaps ended the session largely unchanged.

Bonus Briefs:

• The Buffett Indicator, which compares total stock market value to GDP, reached an all-time high as Warren Buffett retired, suggesting that U.S. equities may be overvalued heading into 2026. Historically, readings at such elevated levels have signaled heightened risk of market corrections, indicating investors should exercise caution despite ongoing bullish sentiment.