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EQUITY
Post Session: Quick Review
Jan-02-2026

Indian equity benchmarks closed the session with significant gains, with Sensex garnering over 550 points, while Nifty closed at all-time high level, supported by strong gains in banking stocks and other heavyweight stocks. Markets made a positive start and remained higher throughout the session, as traders took support with report that India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to be implemented in the first half of 2026, marking a new era in partnership between the two nations.

Some of the important factors in trade:

Govt reports 6.1% increase in GST collection for December: Some support came as the government data showed that gross GST collections rose 6.1 per cent to over Rs 1.74 lakh crore in December 2025, on slow growth in revenues from domestic sales following the sweeping tax cuts. 

India's manufacturing PMI eases to 55.0 in December: Traders took note of data compiled by S&P Global stated that India’s manufacturing activity continued to expand in December, but at a slower pace, with the HSBC Manufacturing Purchasing Managers’ Index (PMI) at 55.0, down from 56.6 in November.

Foreign fund outflows: Market participants overlooked foreign fund outflows, as Foreign Institutional Investors (FIIs) offload equities worth Rs 3,268.60 crore on Thursday.

Global front: European markets were trading in green as investors now await the release of key economic data including the U.S. payrolls report and jobless data next week for additional clues on the outlook for interest rates. Asian markets ended higher after China's manufacturing activity rebounded in December as output returned to growth amid higher inflows of new work.

The BSE Sensex ended at 85762.01, up by 573.41 points or 0.67% after trading in a range of 85068.88 and 85812.27. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.97%, while Small cap index up by 0.79%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 2.71%, Power up by 2.26%, PSU up by 2.02%, Energy up by 1.58% and Realty up by 1.46%, while FMCG down by 1.12% was only losing index on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 4.76%, Trent up by 2.47%, SBI up by 2.04%, Bajaj Finance up by 1.82% and Power Grid Corp up by 1.56%. On the flip side, ITC down by 3.78%, Kotak Mahindra Bank down by 1.46%, Axis Bank down by 0.39%, Bharti Airtel down by 0.14% and Interglobe Aviation down by 0.06% were the top losers. (Provisional)

Meanwhile, the government of India has made amendments to the Central Excise Act, levying an additional excise duty on cigarettes and other tobacco products effective February 1. This duty will be over and above 40% GST. Besides, it has imposed cess on the manufacturing capacity of pan masala-related businesses under the Health and National Security Cess Act. The total tax incidence on pan masala, after taking into account 40% GST, will be retained at the current level of 88%. The revised tax structure replaces the existing regime of 28% GST, along with a compensation cess on tobacco and related products. 

Under the new tax structure, short non-filter cigarettes (up to 65 mm) will attract an additional duty of about Rs 2.05 per stick over and above 40% GST, while short filter cigarettes of the same length will be charged around Rs 2.10 per stick. Further, medium-length cigarettes (65-70 mm) will face an additional duty of around Rs 3.6-4 per stick, and long, premium cigarettes (70-75 mm) about Rs 5.4 per stick. Meanwhile, the cigarettes that come under ‘other’ category carries a significantly higher duty of Rs 8,500 per 1,000 sticks. This applies only to unusual or non-standard designs and most popular cigarette brands do not fall under this slab. Moreover, chewing and jarda scented tobacco, and gutkha will attract an excise duty of 82%, and 91%, respectively.

Since July 2017, the taxes on cigarettes in India have remained unchanged, contrasting to global best practices and public health guidance, which emphasize annual increases in duties to ensure that cigarette prices rise faster than incomes. As per World Bank estimates, India’s total tax incidence on cigarettes is around 53% of the retail price, which is substantially lower than the World Health Organization’s (WHO) recommended benchmark of 75% or more for achieving meaningful reductions in tobacco consumption. The countries like the United Kingdom and Australia tax cigarettes at well over 80-85% of the retail price, while France, New Zealand, and several EU member states maintain tax incidence levels exceeding 75-80%. Besides, over the past decade middle-income countries, such as Turkey, South Africa, the Philippines, and Chile, have too raised their cigarette taxation to levels approaching or exceeding the WHO benchmark.

The CNX Nifty ended at 26328.55, up by 182.00 points or 0.70% after trading in a range of 26118.40 and 26340.00. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 6.85%, NTPC up by 4.70%, Hindalco up by 3.44%, Trent up by 2.61% and JIO Financial Services up by 2.03%. On the flip side, ITC down by 3.79%, Nestle down by 1.18%, Kotak Mahindra Bank down by 1.02%, Shriram Finance down by 0.92% and Axis Bank down by 0.59% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 54.42 points or 0.55% to 9,985.80, Germany’s DAX gained 124.89 points or 0.51% to 24,615.30 and France’s CAC rose 23.3 points or 0.29% to 8,172.80.

Asian markets settled mostly higher on Friday, while trading volumes remained thin due to holidays in Japan and China. Traders were awaiting key US economic data due next week, including the US payrolls report and jobless data might provide additional clues on whether the next Federal Reserve chief would opt for deeper interest-rate cuts. Seoul shares rallied to a record high in the first trading session of 2026 after data showed South Korea's outbound shipments surpassed the $700 billion mark for the first time in 2025, driven by robust global demand for semiconductors and record automobile sales. Moreover, Hong Kong shares surged due to strong rally in technology shares.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

26,338.47

707.93

2.76

Jakarta Composite

8,748.13

101.20

1.17

KLSE Composite

1,669.76

-10.35

-0.62

Nikkei 225

--

--

--

Straits Times

4,656.12

9.91

0.21

KOSPI Composite

4,309.63

95.46

2.27

Taiwan Weighted

29,349.81

386.21

1.33
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