Last Updated on January 2, 2026 11:32 pm by INDIAN AWAAZ
AMN / BIZ DESK
Indian equity markets closed firmly higher on Friday, supported by broad-based buying across most sectors, even as FMCG stocks underperformed. The upbeat sentiment helped both benchmark indices end near their day’s highs, extending the rally into the new year.
The BSE Sensex surged 573.41 points, or 0.67 per cent, to close at 85,762.01, while the NSE Nifty50 advanced 182 points, or 0.70 per cent, to settle at 26,328.55. During intra-day trade, the Nifty touched a fresh all-time high of 26,332.15, reflecting sustained investor confidence.
Buying interest was strong in select heavyweight stocks. On the Sensex, NTPC, Trent, Bajaj Finance, State Bank of India and Power Grid emerged as the top gainers, benefiting from sectoral rotation and renewed interest in cyclical and infrastructure-linked names. Meanwhile, ITC, Kotak Mahindra Bank, Axis Bank and Bharti Airtel ended in the red as investors booked profits in defensive and telecom stocks.
The broader market also participated in the rally, highlighting improved risk appetite. The Nifty Midcap 100 index gained 1.01 per cent, while the Nifty Smallcap 100 rose 0.72 per cent, outperforming frontline indices.
Sector-wise, the rally was led by auto, metal, PSU banking, realty and consumer durables, with each of these indices rising over one per cent. Auto stocks attracted buyers on expectations of stable demand and improving margins, while metal shares gained on firm global cues. PSU banks continued to see inflows amid optimism over asset quality and credit growth. Realty and consumer durables benefited from positive domestic demand outlook.
In contrast, FMCG was the only sector to end lower, declining around 1.2 per cent, as investors rotated out of defensives into higher-growth areas.
Overall, the session reflected strong market breadth, sectoral leadership beyond large caps, and sustained optimism driven by domestic growth expectations at the start of 2026.
Auto Stocks Lead Market Rally
Auto shares emerged as strong performers, with buying interest driven by expectations of stable demand, improving margins and optimism around upcoming earnings. Both passenger vehicle and two-wheeler stocks saw gains as investors positioned themselves ahead of monthly sales data and festive-season demand outlook.
Metal Shares Gain on Firm Cues
Metal stocks moved higher amid supportive global cues and expectations of steady infrastructure spending. Select steel and non-ferrous metal stocks attracted fresh inflows, reflecting confidence in demand from construction and manufacturing sectors.
PSU Banks Extend Uptrend
Public sector bank stocks continued their upward momentum, supported by optimism over asset quality improvement and sustained credit growth. Investors remained positive on government-owned lenders due to better balance sheets and valuation comfort compared to private peers.
Realty Stocks Attract Buying
Real estate stocks witnessed strong gains as investors bet on stable housing demand and improved cash flows. Lower inventory levels and steady residential sales in key urban markets supported sentiment across major realty players.
Consumer Durables See Fresh Inflows
Consumer durables stocks advanced on expectations of resilient domestic consumption. Improved discretionary spending and demand for appliances and electronics helped the sector outperform broader benchmarks.
Energy and Power Stocks Support Indices
Energy and power stocks provided key support to benchmark indices. Gains in power generation and transmission companies reflected expectations of rising electricity demand and continued focus on infrastructure development.
FMCG Stocks Under Pressure
Fast-moving consumer goods stocks were the only major laggards, with the sector seeing profit-booking after recent gains. Concerns over margin pressures and selective valuation worries weighed on key FMCG names.
Telecom and Select Financials Face Profit Booking
Telecom stocks and select private lenders ended lower as investors trimmed positions in defensives and high-valued stocks, preferring cyclical and growth-oriented sectors.