IIP Surges to Peak: Key Market Events & F&O Expiry to Watch This Week

IIP DATA AND KEY EVENTS THIS WEEK

WEEK IN FOCUS

• India’s industrial output surged 6.7% year-on-year in November 2025, the strongest growth in two years, driven by higher production of vehicles, machinery, and metals amid festive-season demand .

• Tuesday, December 30, marks the last monthly F&O (Futures & Options) expiry with existing lot sizes. From January 2026 onwards, NIFTY contracts will shift to a reduced lot size of 65, making derivatives more accessible for retail traders.

• Markets will remain open on New Year’s Day (January 1, 2026) for equity trading. For commodity trading, MCX Morning Session (9:00 AM – 5:00 PM) will be open, but the Evening Session will be closed on January 1.

• Two mainboard IPOs and six SME listings are scheduled this week, offering fresh opportunities amid year-end portfolio adjustments.

WHAT ARE WE MEASURING?

Think of the Index of Industrial Production (IIP) as a report card for India’s industrial economy. Every month, the government measures how much our factories are producing—everything from cars and steel to clothing and machinery.

IIP tracks output across three key sectors:

• Mining: Extraction of minerals and ores

• Manufacturing: Factory-based production of goods

• Electricity: Power generation

HOW ARE THINGS LOOKING?

After a slow start to 2025, India’s industrial momentum has clearly picked up:

• November 2025: 6.7% growth (strongest in two years)

• October 2025: 0.5% growth (weak)

• September 2025: ~4.0% growth (moderate)

• Earlier in 2025: ~2.7%–3.5% growth (slow)

WHY IS PRODUCTION UP?

Factories ramped up production of vehicles, machinery, and metal products. Mining activity rebounded after earlier softness, while festive-season demand pushed consumption higher. When demand rises, factories respond—and that’s exactly what the data reflects.

WHY SHOULD YOU CARE?

When industrial production accelerates:

• More jobs tend to be created

• Businesses show higher confidence

• Economic growth gains strength

This rebound heading into 2026 suggests India’s manufacturing engine is back on track.

Bottom line: November marked India’s strongest industrial performance in two years—an encouraging sign for economic momentum.

WHAT COMES NEXT FOR MARKETS?

Strong economic data sets the backdrop—but what really drives market action this week are the events on the calendar. From F&O expiry to IPO listings, here’s what traders and investors should keep an eye on next.

INDIAN STOCK MARKET: YOUR WEEK AHEAD

1. F&O Expiry Today (3:30 PM)

• Last expiry with old lot sizes (NIFTY, BANKNIFTY, etc.)

• Action: Square off or adjust positions before 3:30 PM

2. Triple SME Listings Today

• Sundrex Oil (₹81–86)

• EPW India (₹95–97)

• Gujarat Kidney (₹108–114)

Expect heightened Day-1 volatility.

3. Modern Diagnostic IPO

• Opens: Dec 31

• Closes: Jan 2

• Price Band: ₹85–90

• Listing: Jan 7

A small-cap IPO with short-term interest potential.

4. E to E Transportation Infrastructure IPO

• Closes Today: 5:00 PM

• Price Band: ₹164–174

• Allotment: Dec 31

• Listing: Jan 2

Last opportunity to apply.

5. Two More Listings Tomorrow

• Admach Systems (₹227–239)

• Bai-Kakaji Polymers (₹177–186)

A busy New Year’s Eve for SME investors.

TRADING THIS WEEK? YOUR SIMPLE MARKET CALENDAR

IPOS & LISTINGS CHEAT SHEET

• E to E Transportation Infrastructure

Opens: Dec 26 | Closes: Dec 30 (5 PM)

Allotment: Dec 31 | Listing: Jan 2 (NSE SME)

• Modern Diagnostic & Research Centre

Opens: Dec 31 | Closes: Jan 2 (5 PM)

Allotment: Jan 5 | Listing: Jan 7 (BSE SME)

• SME Listings

o Dec 30: Sundrex Oil, EPW India, Gujarat Kidney

o Dec 31: Admach Systems, Bai-Kakaji Polymers

GLOBAL & POLICY WATCH

• Any geopolitical developments could impact global sentiment, currencies, and emerging markets like India.

VOLATILITY DRIVERS TO WATCH

• December F&O expiry

• Year-end portfolio rebalancing

• Economic data releases (IIP, PMI, US macro data)

• Global geopolitical headlines

FINAL TAKE

India’s industrial sector is firing on all cylinders, with November’s 6.7% IIP growth highlighting strong manufacturing health as we enter 2026. At the same time, markets face a packed event calendar—structural changes in derivatives, multiple IPOs, etc. Stay disciplined, double-check facts & timings, and manage risk carefully amid year-end volatility.

VERIFICATION & DISCLAIMER

Timings, listings, and exchange schedules are subject to change. Always verify details via official NSE, BSE, and MCX notifications. This content is for informational purposes only and does not constitute investment advice. Consult a qualified financial advisor before making investment decisions.

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