Indian equities experienced a volatile start to the week, with the Sensex and Nifty fluctuating as investors considered corporate earnings and geopolitical tensions. Early optimism regarding improving quarterly earnings was tempered by concerns about the implications of U.S. military action in Venezuela.
The Nifty 50 index was trading above 26,300, while the Sensex also saw considerable movement. After closing Friday at a record high of 26,328.55, the Nifty is expected to maintain its momentum in January. Analysts suggest that as long as the index remains above 26,000, declines should be viewed as buying opportunities, given its position above key moving averages and strength in momentum indicators.
HCL Technologies (HCLTech) experienced a slight dip, with its stock price down by 1%. HCLTECH is trading at ₹1,640.20, a 0.35% increase in the last 24 hours. Despite this, HCLTech has demonstrated robust financial performance in Q2 FY26, with a 2.4% sequential revenue growth and improved operating margins of 17.5%. The company's focus on AI integration has led to over $100 million in Advanced AI revenue, representing approximately 3% of total revenue. However, the company faces challenges including restructuring efforts impacting margins and slow decision-making in key markets like Europe.
In contrast, Oil and Natural Gas Corporation (ONGC) saw its stock rise by 2%. The current price of ONGC is ₹241.46, up 1.48% in the past 24 hours. ONGC's recent performance reflects both growth opportunities and operational challenges. While its consolidated net profit increased by 28.19% year-over-year, standalone profits were affected by declining crude oil prices and forex losses. The company is focused on enhancing gas production, particularly from the Daman project, to increase its share of new well gas.
Overall, the Indian stock market is showing signs of strength, with the Nifty potentially heading to 26,800 in January. Mark Mobius, a veteran in emerging markets, remains positive on India, with around 30% of his portfolio invested in the country, expecting the Indian market to return about 12-15% in 2026.
GIFT Nifty on the NSE IX traded higher by 68 points, or 0.26 per cent, at 26,536, signaling a positive start for Dalal Street on Monday.
