HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets start New Year on positive note
Jan-01-2026

Domestic equity indices have made positive start and are trading higher in early deals on the first day of the new calendar year 2026 on account of buying in Interglobe Aviation, Reliance Industries, Mahindra & Mahindra, Eternal and Larsen & Toubro. Sentiments got boost as the Reserve Bank of India its half-yearly Financial Stability Report said that the Indian economy is growing at a robust pace, driven by strong domestic demand, low inflation, and the healthy balance sheets of banks. The domestic financial system remains robust and resilient, bolstered by strong balance sheets, easy financial conditions, and low financial market volatility. However, gains remain capped as foreign institutional investors (FII) were net sellers of shares worth Rs 3,597.38 crore on Wednesday, according to the provisional data available on the NSE. 

On the global front, Asian markets remain shut today on account of the New Year’s Day holiday. Back home, on the BSE sectoral front, traders were seen piling up positions in Telecom, Energy, Oil & Gas, TECK and Industrials, while selling was witnessed only in FMCG and Healthcare.

The BSE Sensex is currently trading at 85404.74, up by 184.14 points or 0.22% after trading in a range of 85253.06 and 85444.14. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.02%, while Small cap index up by 0.03%.

The top gaining sectoral indices on the BSE were Telecom up by 1.05%, Energy up by 0.58%, Oil & Gas up by 0.44%, TECK up by 0.42% and Industrials up by 0.30%, while FMCG down by 1.27% and Healthcare down by 0.36% were the only losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 2.17%, Reliance Industries up by 1.25%, Mahindra & Mahindra up by 1.02%, Eternal up by 1.01% and Larsen & Toubro up by 0.76%. On the flip side, ITC down by 3.83%, Bharat Electronics down by 0.34%, Trent down by 0.32%, Bajaj Finance down by 0.27% and Sun Pharma down by 0.26% were the top losers.

Meanwhile, the Reserve Bank of India in its December 2025 edition of the Financial Stability Report (FSR) has said that the Indian economy is growing at a robust pace, fueled by strong domestic demand, low inflation, and the healthy balance sheets of banks. The domestic financial system remains robust and resilient, supported by strong balance sheets, favorable financial conditions, and low financial market volatility.

The report, which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability, mentioned that there are near-term risks from external uncertainties - geopolitical and trade-related. The report noted that the real gross domestic product (GDP) growth surprised on the upside in both Q1 2025-26 and Q2 2025-26 at 7.8 per cent and 8.2 per cent, respectively, driven by strong private consumption and public investment. It mentioned growth outlook remains positive, supported by low inflation, favorable financial conditions, above normal monsoon, direct and indirect tax reforms, and the ongoing expansion of digital public infrastructure. 

Further, it said the health of scheduled commercial banks (SCBs) remains strong, with solid capital and liquidity buffers, improved asset quality, and robust profitability. It added Macro stress test results affirm the resilience of SCBs to withstand losses under hypothetical adverse scenarios and maintain capital buffers well above the regulatory minimum. Stress tests also confirm the resilience of mutual funds and clearing corporations.

According to the report, the gross non-performing assets ratio of banks will improve further to 1.9 per cent by March 2027 under a baseline scenario. As of September 2025, the key ratio stood at a multi-decade low of 2.1 per cent. The aggregate GNPA ratio of the 46 banks may improve from 2.1 per cent in September 2025 to 1.9 per cent in March 2027 under the baseline scenario.

The CNX Nifty is currently trading at 26187.20, up by 57.60 points or 0.22% after trading in a range of 26149.25 and 26195.35. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Interglobe Aviation up by 1.69%, Eternal up by 1.35%, Wipro up by 1.20%, Reliance Industries up by 1.13% and Mahindra & Mahindra up by 1.10%. On the flip side, ITC down by 3.78%, Dr. Reddy's Lab down by 1.18%, Cipla down by 0.58%, ONGC down by 0.41% and Trent down by 0.29% were the top losers.
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.