Indian equity markets staged a powerful comeback in the trading session on Friday, January 2, 2026, erasing the sluggishness seen at the start of the year. The benchmark indices closed with robust gains, propelled primarily by strong performances in the banking, realty, and metal sectors.
Benchmarks Scale New Heights
The headline index, Nifty 50, surged by 0.70% or 186.60 points to settle at 26,326. In a significant development during late trade, the index even scaled a fresh all-time peak of 26,340, surpassing its previous record of 26,325 achieved on December 1. The 30-share S&P BSE Sensex mirrored the gains, closing 0.70% higher at 85,776. However, the Sensex remains 383 points shy of its own record high of 86,159.
The rally had a broad-based support. Data from the National Stock Exchange (NSE) highlighted that three heavyweight constituents—HDFC Bank, ICICI Bank, and Reliance Industries—were instrumental, collectively contributing a substantial 85 points, accounting for approximately 45% of the Nifty's total upward movement.
Sectoral Performance and Broader Market Momentum
The broader market indices also participated enthusiastically in the uptrend. The Nifty Midcap 100 index advanced by 1%, while the Nifty Smallcap 100 index gained 0.70%, indicating healthy investor appetite across market capitalizations.
Sectorally, it was a day dominated by bulls in most segments. The banking pack, both public and private, led the charge upwards. Improved sentiment followed the release of December-quarter business updates from several banks, signs of strengthening credit demand, and expectations of a solid third-quarter performance for the fiscal year 2026.
The Nifty PSU Bank index emerged as the top sectoral performer, skyrocketing by 1.83%. It was closely followed by the Nifty Realty index, which climbed 1.62%, and the Nifty Metal index, which rose 1.43%. Other notable gainers included the Nifty Auto, Nifty Consumer Durables, and Nifty Media indices, all posting gains exceeding 1%. On the losing side, the Nifty FMCG index was the sole sectoral laggard, declining by 1.17%.
Notable Stock Movers
Among individual stocks, several names stood out with significant gains, driving the market's positive momentum. Key performers included SJVN, OLA, Coal India, Hindustan Copper, Paytm, and YES Bank. These stocks were counted among the session's top gainers, attracting strong buying interest from investors.
The day's trading action marks a decisive shift in sentiment after a tepid beginning to the new calendar year. The record high for the Nifty 50, coupled with widespread sectoral participation, sets an optimistic tone for the trading sessions ahead, with market participants keenly watching corporate earnings and macroeconomic indicators for further direction.
