Equity market commenced 2026 on a strong note with as many as nine indices on the NSE hitting all-time highs including the benchmark Nifty50 on Friday amid broad-based rally in banking, realty, metals and auto stocks.
NSE Nifty 50 index hit an all-time high of 26,340 today before closing 182 points or 0.70 per cent higher at 26,328.55. The BSE Sensex ended 573.41 points or 0.67 per cent higher at 85,762.01, after jumping over 740 points intraday.
Among the NSE indices, Nifty Auto, Nifty Bank, Nifty Metal, Nifty PSU Bank, Nifty Private Bank, Nifty Midcap 150, Nifty Midcap 100, Nifty Midcap 50 and Nifty 50 hit new peaks. Besides, large-cap indices such as Nifty 500, Nifty 200 and Nifty 100 hit 52-week highs.
Slew of triggers
Optimism around an improving earnings outlook, upcoming Union Budget, healthy auto sales, positive bank business updates and expectations of reforms and a potential US trade deal further buoyed sentiment.
Steady domestic institutional inflows helped offset persistent foreign selling, Gaurav Garg, Research Analyst Lemonn Markets Desk, added.
However, Ashish Chaturmohta, MD & Fund Manager, Apex PMS, JM Financial, said the market’s underlying tone remains fragile.
While January has historically been a month of consolidation or bearishness, Santosh , Head of Research at Swastika Investmart, said that the current momentum suggested a decisive break from this seasonal trend. Supported by robust underlying factors and positive sentiment, the market structure remains firm, he said.
IDBI Capital said “We enter 2026 with a constructive but measured outlook on Indian equities. While India’s structural growth story remains intact, near-term market performance is likely to be shaped by earnings recovery, valuation discipline, global liquidity conditions, and external trade dynamics.” After a year of relative underperformance versus emerging market peers, Indian equities appear positioned for more balanced returns, driven by domestic demand resilience rather than broad-based multiple expansion, the domestic brokerage said in a note.
Market breadth remained firm as 2,711 stocks on the BSE advanced against 1,524 declined. In all, 185 stocks on the BSE hit 52-week high.
Bank Nifty, Midcap at peak
Bank Nifty extended its upward move and scaled a fresh all-time high of 60,204 during the session and settledd at 60,150.95. Rupak De, Senior Technical Analyst at LKP Securities, said that the index remain a clear outperformer versus the Nifty in recent sessions.
Midcap index outperformed, posting record highs of 61,398.40, and settled with 1 per cent gains at 61,365.90, while smallcap index rose 0.7 per cent. On the sectoral front, all indices except FMCG ended in positive territory. Realty, PSU Bank, metals and auto led the chart.
According to Vinod Nair, Head of Research, Geojit Investments, investor sentiment remained broadly constructive as attention turns to Q3 earnings, likely to guide near-term market direction.
Supportive fiscal policies and gradual monetary easing are likely to shape the investment landscape in 2026. However, investors are focusing on large-cap stocks for stability while selectively exploring mid-cap opportunities in cyclical sectors and areas driven by domestic growth, Nair added.
Top gainers & losers of Nifty 50
Shares of Coal India, NTPC, Hindalco, Trent, SBI and Jio Financial led the gainers of Nifty 50, while ITC, Kotak Mahindra Bank, Nestle India, Shriram Finance and Bajaj Auto were major laggards.
Coal India was the top Nifty gainer after it allowed direct participation of foreign coal buyers from select countries in its e-auctions.
Automobile stocks continued upward momentum boosted by strong December sales.
Metal stocks gained traction driven by the government’s safeguard duty on some steel products to curb cheap imports from China and on rising commodity prices.
ITC shares extended losses as investors worried about earnings pressure from higher taxes on cigarettes.
A total of 4,371 stocks were traded on the BSE, out of which 2,772 advanced, 1,449 declined, and 150 remained unchanged. The number of stocks hitting a 52-week high stood at 185, while 83 stocks touched their 52-week low, indicating a stronger bullish momentum overall. Additionally, 5 stocks were in the upper circuit, compared to 6 stocks in the lower circuit.
Midcap and smallcap movers
Under the midcap index, Torrent Power, IREDA, NHPC, Dabur India and National Aluminium zoomed 5-6 per cent, while Waaree Energies, APL Apollo, Godfrey Phillips, ATHL and PB Fintech declined 1-3 per cent.
Among smallcap stocks, Ola Electric, JBM Auto, Anant Raj and CESC zoomed 5-9 per cent, while Radico, Lal Path Labs, MRPL and Aegis Vopak fell 1-5 per cent.
Markets are expected to remain firm, with investor focus on pre-quarterly business updates and the onset of the Q3 earnings season, according to Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Meena of Swastika Investmart has anticipated the market strength to continue, driving the Nifty towards the 26,700–27,000 zone.
Global markets
Asian markets- South Korea’s Kospi index and Hong Kong’s Hang Seng index ended higher,w hile China’s Shanghai index and Japan’s Nikkei were closed for a holiday.
European markets traded higher.
US markets were closed on Thursday for the New Year’s Day holiday.
FIIs offloaded equities worth ₹3,268.60 crore on Thursday. DIIs bought stocks worth ₹1,525.89 crore. BSE Sensex dipped 32 points or 0.04 per cent to end at 85,188.60 on Thursday, while Nifty 50 inched up 16.95 points or 0.06 per cent to 26,146.55.
Looking ahead, investors will give attention to US payroll and unemployment data for global market direction.
Published on January 2, 2026
