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Benchmarks end week with solid gains on value buying fueled by optimism over economic growth
Jan-02-2026

Indian equity benchmarks ended the week with solid gains of around a percent as traders preferred to buy fundamentally strong stocks looking forward to good prospects on overall economic growth after robust macroeconomic indicators and stable domestic fundamentals. The government data showed that overtaking Japan, India became the world’s fourth-largest economy.

Some of the major developments during the week are:

India’s IIP jumps to 2-year high of 6.7% in November: With robust growth in mining and manufacturing, India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), jumped to two-year high of 6.7% in November 2025 from 0.5% in October 2025 and 5.0 per cent in November 2024.

FDI in India likely to cross $80 billion mark again in 2026: Expressing optimism over India’s growth foreign direct investments (FDI) inflows, the DPIIT Secretary Amardeep Singh Bhatia has expressed hopes that in year 2026, FDI likely to cross the last year's all-time high of $80.62 billion.

Govt reports 6.1% increase in GST collection for December: The government data has showed that Gross Goods and Services Tax (GST) collection increased by 6.1% to Rs 1,74,550 crore in December 2025 as compared to Rs 1,64,556 crore collected in December 2024. 

India's fiscal deficit reaches 62.3% of full year target in April-November of FY26: The data released by the Controller General of Accounts showed that India’s fiscal deficit - the difference between the government’s revenue and expenditure - has reached 62.3% of the BE as of the April-November of FY26.

India's manufacturing PMI eases in December: India's manufacturing industry witnessed a slowdown in growth in December, on competitive pressures and subdued sales of specific items. The seasonally adjusted HSBC India Manufacturing PMI eased to 55.0 in December 2025 from 56.6 in November 2025.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 720.56 points or 0.85% to 85,762.01 during the week ended January 02, 2026. The BSE Midcap index gained 818.14 points or 1.75% to 47,539.18 and Smallcap index surged 601.45 points or 1.17% to 51,920.13. On the sectoral front, S&P BSE Metal was up by 1,997.56 points or 5.60% to 37,656.19, S&P BSE PSU was up by 808.84 points or 3.99% to 21,073.75, and S&P BSE Power was up by 238.34 points or 3.67% to 6,725.89 were the top gainers, while S&P BSE Fast Moving Consumer Goods was down by 704.68 points or 3.48% to 19,520.75, S&P BSE Information Technology was down by 283.48 points or 0.76% to 37,136.91 and S&P BSE TECK was down by 65.95 points or 0.35% to 18,705.48 were the few losers on the BSE.

NSE movement for the week

The Nifty surged 286.25 points or 1.10% to 26,328.55. On the National Stock Exchange (NSE), Bank Nifty was up by 1139.60 points or 1.93% to 60,150.95, Nifty Mid Cap 100 increased 1051.45 points or 1.74% to 61,365.90 and Nifty Next 50 gained 1455.85 points or 2.11% to 70,416.90, while Nifty IT was down by 252.00 points or 0.65% to 38,320.30.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 33,060.62 crore and gross sales of Rs 48,545.00 crore, leading to a net outflow of Rs 15,484.38 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 13,251.41 crore against gross sales of Rs 4,376.14 crore, resulting in a net inflow of Rs 8,875.27 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 78.59 crore and gross sales of Rs 193.64 crore, leading to a net outflow of Rs 115.05 crore.

Industry and Economy

The government in its latest release has said that India has reached a new milestone, overtaking Japan to become the world’s fourth-largest economy, with GDP valued at $4.18 trillion. With strong growth momentum, India is now on track to displace Germany from the third rank in the next 2.5 to 3 years with projected GDP of $7.3 trillion by 2030. It also stated that India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum. With the ambition of attaining high middle-income status by 2047- the centenary year of its independence- the country is building on strong foundations of economic growth, structural reforms, and social progress. 

Outlook for the coming week

Indian markets ended the passing week in green ahead of the quarterly earnings season. Besides, India’s Industrial Production (IIP), jumped to two-year high of 6.7 per cent in November 2025 from 0.5 per cent in October 2025.

On the economy front, market-participants would be eyeing the data of HSBC Composite PMI Final, HSBC Services PMI Final, which are scheduled to be release on January 06. Fiscal Year GDP Growth data going to be out on January 07. Bank Loan Growth, Deposit Growth and Foreign Exchange Reserves, scheduled to be release on January 09.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with ISM Manufacturing PMI, ISM Manufacturing Employment on January 05 followed by Redbook YoY, S&P Global Composite PMI Final, S&P Global Services PMI Final on January 06, ISM Services PMI, ISM Services Business Activity on January 07, Balance of Trade, Initial Jobless Claims on January 08, Fed Balance Sheet, Michigan Consumer Sentiment Prel, Baker Hughes Oil Rig Count on January 09.

Top Gainers 

  • NTPC up by 8.64% was the top gainer on Nifty for the week - NTPC traded with traction as its step-down subsidiary -- NTPC Renewable Energy started commercial operation of part capacity of 13.98 MW out of 1255 MW Khavda-I Solar PV Project under CPSU scheme Phase-II Tranche-III located in Gujarat. NTPC Renewable Energy is a wholly owned subsidiary of NTPC Green Energy, a subsidiary of the company.
  • Tata Steel up by 8.14% was another top gainer on Nifty for the week - Tata Steel traded higher as investors favoured steel stocks after the government extended safeguard duties on imports of certain steel products for three years, with aim of protecting domestic players from significant increase in cheap imports. The Indian government has imposed a final safeguard duty of 12% on flat steel products for three years.

Top Losers 

  • ITC down by 13.39% was the top loser of the week on Nifty - ITC came under pressure after the government of India levied an additional excise duty on cigarettes and other tobacco products effective February 1. This duty will be over and above 40% GST. Investors worry that the additional tax will impact on the company’s Cigarette sales as this segment of the company contribute significantly to its overall revenue.
  • HCL Technologies down by 1.25% was another top loser of the week on Nifty - Most of the IT stocks traded lower during the week as traders remained concerned over the US imposing exponential H-1B visa fees, the geopolitical tension, and the ongoing tariff war between the US and India. Meanwhile, HCL Technologies’ Board of Directors will meet on January 12, 2026, to consider its financial results for the quarter ended December 31, 2025.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,340.00 on January 2 and lowest level of 25,878.00 on December 30. On the last trading day, the Nifty closed at 26,328.55 with weekly gain of 286.25 points or 1.10 percent. For the coming week, 26,024.37 followed by 25,720.18 are likely to be good support levels for the Nifty, while the index may face resistance at 26,486.37 and further at 26,644.18 levels.

US Market

The U.S. markets traded lower during the week as some traders remained away from their desks ahead of the New Year's Day holiday. 

Some of the major developments during the week are:

Chicago business barometer rebounds much more than expected in December: Chicago business barometer jumped to 43.5 in December after plunging to 36.3 in November. Street had expected the index to rise to 39.5.

Pending home sales in U.S. surge in November: The National Association of Realtors said its pending home sales index spiked by 3.3 percent to 79.2 in November after surging by 2.4 percent to an upwardly revised 76.7 in October.

U.S. weekly jobless claims unexpectedly decrease: Initial jobless claims fell to 199,000 in the week ended December 27, a decrease of 16,000 from the previous week's revised level of 215,000.

Fed minutes highlight mixed views about outlook for interest rates: The minutes revealed participants expressed a range of views about the restrictiveness of the Fed's current monetary policy stance.

U.S. crude oil inventories decrease in the week ended December 26: Crude oil inventories fell by 1.9 million barrels last week after inching up by 0.4 million barrels in the previous week.

European Market

European markets remained positive during the passing week, as markets digested the minutes of the Fed's latest meeting and the hints of further easing contained therein. However, thin year-end volumes and New Year holidays kept trading subdued. 

Some of the major developments during the week are:

Sweden trade surplus grows in November: The figures from Statistics Sweden showed that the trade surplus rose to SEK 11.6 billion in November from SEK 5.2 billion in the corresponding month last year. 

Finland consumer confidence weakens: The consumer confidence index dropped to -7.3 in December from -6.5 in November. Moreover, the score is well below the long-term average of -2.8.

Spain inflation eases to 4-month low: The flash data showed that the consumer price index posted an annual increase of 2.9 percent in December, slightly slower than the 3.0 percent rise in November.

Swiss KOF leading indicator rises to 15-month high: The results of a survey by the KOF Swiss Economic Institute showed that the economic barometer rose to 103.4 in December from 101.7 in November.

Poland inflation eases to 20-month low: The preliminary data from Statistics Poland showed that the consumer price index climbed 2.4 percent year-over-year in December, slightly slower than the 2.5 percent increase in November.

Asian Market

Asian markets traded mostly in green during the passing week, amidst bets on future Federal Reserve interest rate cuts.

Some of the major developments during the week are:  

Japan jobless rate stays at 2.6% for 4th month: Japan’s unemployment rate stood at 2.6% in November 2025, unchanged from the previous three months and in line with market estimates.

China Composite PMI notches 6-month high: China’s NBS Composite PMI Output Index edged up to 50.7 in December 2025 from 49.7 in the previous month, marking the highest reading since June.

China's NBS Manufacturing PMI rises in December: China’s official NBS Manufacturing PMI unexpectedly rose to 50.1 in December 2025, surpassing both November’s reading and expectations of 49.2.

South Korea exports hit record high in 2025: South Korea's exports reached a record $709.7 billion in 2025, surpassing $700 billion for the first time.

South Korea industrial production gains in November: Industrial output in South Korea climbed a seasonally adjusted 0.6% on month in November. That missed forecasts for an increase of 2.2% following the downwardly revised 4.2% contraction in October.
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