Sensex and Nifty50 Performance Overview

The benchmark Sensex opened flat, initially gaining 70.76 points, before accelerating to a peak gain of 399.94 points during the session. It ultimately settled at 85,659.30, marking a 0.55% increase. This level places the index just 0.58% shy of its 52-week high of 86,159.02, underscoring sustained investor confidence early in the new year. The Nifty50 also advanced, buoyed by select sectoral rallies and strong midcap momentum.

Technically, the Sensex remains in a constructive zone, trading comfortably above its 50-day moving average (DMA), which itself is positioned above the 200-DMA, indicating a positive medium-term trend. This alignment suggests that the market is favouring risk assets, supported by improving domestic fundamentals and stable global sentiment.

Sectoral Trends: Public Sector and Energy Shine, FMCG Faces Headwinds

Out of 38 sectors tracked, 36 advanced while only two declined, highlighting broad-based participation. The NIFTYCPSE index led sectoral gains with a robust 2.49% rise, reflecting strong buying interest in central public sector enterprises. Coal India emerged as the top large-cap gainer, surging 6.48%, supported by expectations of improved coal demand and favourable government policies.

Energy-related stocks also performed well, with SJVN, a midcap hydroelectric power company, rallying 9.66%, the highest among midcaps. This surge was complemented by other BSE500 top gainers such as IDBI Bank (+10.17%) and T R I L (+8.48%), signalling selective strength in financials and industrials.

Conversely, the FMCG sector underperformed, with the NIFTYFMCG index declining 1.32%. ITC was the largest large-cap laggard, falling 4.01%, weighed down by profit booking and subdued volume growth concerns. Midcap and small-cap losers included GE Vernova T&D (-2.27%) and Cupid (-19.99%), respectively, reflecting sector-specific pressures and profit-taking.

Market Breadth and Capitalisation Trends

The advance-decline ratio across the BSE500 stood at a healthy 2.18x, with 340 stocks advancing against 156 declining. This positive breadth confirms broad market participation beyond headline indices. Midcaps led the charge, with the BSE Midcap index rising 0.77%, outperforming the BSE100 (+0.62%) and BSE Smallcap (+0.60%) indices. Small caps traded largely flat, indicating cautious investor stance in the riskier segment.

Foreign Institutional and Domestic Institutional Activity

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) activity remained mixed but supportive of the market rally. While detailed net flows are awaited, the positive market breadth and sectoral leadership from public sector and energy stocks suggest continued buying interest from domestic funds. FIIs have been cautious in recent sessions amid global uncertainties but have not turned decisively negative, allowing the market to hold its ground.

Global Cues and Outlook

Global markets showed a mixed tone as investors digested a combination of easing inflation data from the US and cautious commentary from central banks. Asian markets were largely steady, while European indices closed modestly higher. Crude oil prices remained stable, supporting energy stocks in India. The cautious optimism globally has helped Indian markets maintain their upward trajectory, though investors remain watchful of geopolitical developments and macroeconomic data releases in the coming weeks.

Upcoming Corporate Earnings to Watch

Market participants are gearing up for key earnings announcements next week, which could provide fresh impetus or caution. Notably, IT bellwethers TCS and HCL Technologies are scheduled to report results on 12 January 2026, while ICICI Prudential Life Insurance will announce on 13 January 2026. These results will be closely analysed for indications on IT sector demand, insurance premium growth, and overall corporate earnings momentum.

Top Gainers and Losers: Detailed Snapshot

Among the large caps, Coal India led the charge with a 6.48% gain, reflecting optimism on coal demand and government support. ITC was the largest large-cap decliner, down 4.01%, pressured by profit booking and sector rotation. Midcaps saw SJVN surge 9.66%, while GE Vernova T&D declined 2.27%. Small caps were mixed, with Silver Touch gaining 10.72% and Cupid plunging 19.99%, highlighting selective volatility in this segment.

Other notable BSE500 gainers included IDBI Bank (+10.17%) and T R I L (+8.48%), while Embassy Developments (-4.53%) and Radico Khaitan (-4.52%) were among the top losers, reflecting sector-specific challenges and profit-taking.

Technical and Market Sentiment Analysis

The market’s technical setup remains constructive with the Sensex comfortably above its 50-DMA and the 50-DMA above the 200-DMA, signalling a bullish medium-term trend. The strong advance-decline ratio and leadership from midcaps suggest healthy market breadth and investor risk appetite. However, the underperformance of defensive sectors like FMCG and select small caps indicates pockets of caution and profit booking.

Investors should monitor upcoming earnings closely, especially from IT and financial sectors, to gauge the sustainability of the current rally. Global macroeconomic developments and crude oil price movements will also remain key drivers in the near term.

Conclusion

Indian equity markets started 2026 on a positive note, led by midcap strength and broad sectoral participation. The Sensex’s 0.55% gain, supported by robust performances in public sector and energy stocks, reflects underlying optimism despite some sectoral divergences. Market breadth and technical indicators remain favourable, though investors should remain vigilant ahead of key corporate results and evolving global cues. Overall, the market appears poised for measured gains, with selective opportunities in mid and large caps.

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