On January 2, 2026, the Indian stock market exhibited strong investor confidence, marking a positive start to the new calendar year. Both the Nifty 50 and the BSE Sensex closed in the green, buoyed by gains in banking and IT stocks, with broad market resilience.
Market Performance:
- Nifty 50: Closed at 26,328.55, a 0.70 percent increase. Earlier in the day, Nifty 50 touched an intraday high of approximately 26,340.
- BSE Sensex: Settled at 85,762.01, up by 0.67 percent.
- Nifty Bank: Gained 0.74 percent, closing at 60,150.95. The index also hit an all-time high, reaching approximately 60,203.
- Nifty IT: Finished at 38,320.30, a rise of 0.39 percent.
- Broader market indices also saw gains, with BSE midcap and smallcap indices increasing by nearly 1%.
The overall market breadth was positive, indicating broad participation.
Key Drivers
The banking sector was a primary driver, with Nifty Bank exceeding 60,000, reflecting strong confidence in India's financial system, and expectations of credit growth. The IT sector showed gradual improvement, supported by stable global cues. Domestic institutional investors, with strong SIP inflows, provided market stability.
US-Venezuela Conflict Impact
The US attack on Venezuela is expected to cause a gap-up opening for crude oil, gold, and silver prices. However, the Indian equity market is expected to remain stable, with limited downside impact on oil stocks, which are expected to recover quickly. Some market experts believe that the Indian equity markets may witness a knee-jerk reaction to the development but no major impact is expected. Heightened geopolitical tensions could prompt FPIs to sell emerging market assets, including Indian equities, moving towards safer havens.
Commodity Market
Anuj Gupta, Director at Ya Wealth, anticipates a gap-up opening for gold, silver, copper, crude oil, and gasoline. Sandeep Pandey, Co-founder of Basav Capital, noted that the US-Venezuela crisis has jeopardized sea routes used for silver exports, potentially creating supply concerns.
Impact on Trade
The US-Venezuela conflict is expected to have a negligible impact on India's trade, as trade has already declined due to sanctions.
Individual Stock Highlights
- Coal India: Surged over 7% after announcing a policy shift allowing foreign buyers to bid directly in digital coal auctions.
- NTPC: Rose by over 4% as the company seeks international partners for nuclear power plants.
- SBI: Gained over 2%, closing at ₹1,005.65.
- Auto Sector: The Nifty Auto Index reached an all-time high of 28,867.
Overall Sentiment
The Indian stock market had a strong start to the year, with optimistic investor sentiment. Positive domestic macro data and corporate news offset foreign investor selling. While short-term fluctuations are possible, India's long-term growth story supports equity markets.
