NEW YORK, Jan 4, 2026, 09:47 ET — Market closed
- NSE’s Nifty 50 last closed up 0.70% at a record 26,328.55; Sensex gained 0.67%
- Banks, metals and autos led; FMCG lagged as ITC slid nearly 4%
- Focus shifts to Monday’s services PMI and early earnings, starting with TCS on Jan. 12
India’s Nifty 50 index on the National Stock Exchange of India (NSE) ended Friday at a record closing high, capping the first trading week of 2026 with broad buying in banks, metals and autos.
The benchmark is heading into the December-quarter results season near peak levels, lifting the stakes for companies’ outlook on demand and margins. Budget positioning is also building after local media reported the government is still finalising the schedule for the Union Budget, traditionally presented on Feb. 1.
“Whether they hold on to these levels this time will be determined by quarterly earnings and the Union Budget,” said Kranthi Bathini, director of equity strategy at WealthMills Securities. Metal shares have been supported by a government safeguard duty — a temporary tariff — on some steel products to curb cheap imports from China, while ITC has come under pressure after higher cigarette taxes stoked worries about earnings. Reuters
The Nifty 50 (.NSEI) rose 0.70% on Jan. 2 to 26,328.55 after touching an intraday high of 26,340, while the BSE Sensex (.BSESN) gained 0.67% to 85,762.01.
The rally was broad, with all sectoral indexes higher except consumer staples. The Nifty FMCG index fell 1.19%, while realty, PSU banks, metals and autos rose more than 1% each, Mint reported.
Banking stocks stayed in focus, with the Nifty Bank index hitting a record 60,203.75 intraday before ending 0.74% higher at 60,150.95. Lenders carry the biggest weight in India’s benchmarks, making the sector’s follow-through key to the index’s next leg.
Auto stocks also helped after December sales data encouraged bets that demand held up into the festive quarter. Traders will watch management commentary for any shift in pricing and margin expectations as competition stays intense.
Coal India, NTPC and Hindalco Industries were among the top Nifty gainers on the day, while ITC led declines.
Coal India climbed more than 6% after it opened its coal e-auctions to buyers from Bangladesh, Nepal and Bhutan, Reuters reported, a move the state miner said was aimed at supporting offtake and margins as domestic demand softens. Analysts cited by Reuters said the change is likely to shift how buyers access supply rather than materially lift overall volumes.
On the charts, technicians flagged support around 26,050–26,000 and resistance near 26,200, with a break above that zone seen as a precondition for a move toward 26,350–26,400, according to a Moneycontrol technical note.
But record highs leave little room for disappointment. A weaker-than-expected earnings season or budget headlines that spook tax-sensitive sectors could trigger profit-taking, especially after the sharp run into year-end.
