Indian equity benchmarks celebrated a powerful start to the new year, scaling unprecedented heights on the back of robust investor optimism. On Friday, January 2, 2026, the key indices closed at fresh record levels, fueled by expectations of strong third-quarter corporate earnings and positive sectoral trends.
Benchmarks Scale New Peaks
The National Stock Exchange's (NSE) flagship Nifty50 index surged by 0.70 per cent, or 182 points, to settle at a historic closing high of 26,328.55. This performance shattered its previous record close of 26,216.05, which was set on September 26, 2024. During the trading session, the 50-share index also notched a new intraday peak of 26,340, surpassing its earlier all-time intraday high of 26,325.8 from December 1, 2025.
Mirroring this bullish sentiment, the Bombay Stock Exchange's (BSE) Sensex climbed 0.67 per cent, or 573.41 points, to end the day at 85,762.01. The 30-share benchmark finished tantalizingly close to its own record closing high of 85,836.12, also achieved on September 26, 2024.
Broad-Based Rally and Expert Commentary
The market advance was notably wide-ranging. All sectors, except for Fast-Moving Consumer Goods (FMCG), contributed to the gains. The top performers for the day were stocks in the energy, realty, and metal sectors, which led the charge upwards.
Market experts attributed the rally to a confluence of positive factors. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., noted that markets extended their gains to reclaim record-high levels, marking a strong start to 2026. He pointed to supportive sentiment driven by positive sector-specific developments, including stronger auto sales trends and an improving demand outlook across cyclical sectors.
From a technical perspective, Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking Ltd., observed that the Nifty extended its uptrend for the third consecutive session. He highlighted a breakout from a symmetrical triangle pattern on the daily chart, aided by broad-based short covering.
Robust Participation and Future Outlook
A key indicator of the session's strength was the substantial jump in trading activity. Turnover in the NSE's cash segment witnessed a robust increase of 28 per cent compared to the previous session, reflecting significantly heightened market participation.
Analysts are now eyeing further potential upside. Nandish Shah, Deputy Vice President at HDFC Securities, stated that the Nifty has convincingly surpassed previous swing-high barriers at 26,236 and 26,325, signaling a strong breakout from its earlier consolidation zone. With the index entering uncharted territory, he sees the near-term upside extending toward 26,500 and beyond. On the downside, he identified immediate support at around 26,100, which should act as a cushion during any dips.
The bullish momentum was not confined to the large caps. Broader market strength remained evident, with the Nifty Midcap100 index advancing 1.01 per cent to a record close of 61,365.90. The Nifty Smallcap100 index also rose by 0.72 per cent to 17,832.05. Market breadth stayed firmly positive for the third straight session, with an advance-decline ratio of 1.93 on the BSE. The Bank Nifty joined the party, advancing 0.74 per cent to end at its own all-time high of 60,150.95.
Among the major gainers on the NSE were:
- Coal India Ltd (up 7.15%)
- NTPC Ltd (up 4.56%)
- Hindalco Industries Ltd (up 3.53%)
- Trent Ltd (up 2.39%)
- State Bank of India (up 2.12%)
Looking ahead, Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services Ltd., expects the positive momentum to continue into the following week. This optimism is supported by several companies scheduled to announce their pre-quarterly business updates, which could provide further catalysts for the market.
