Nifty, Sensex Scale Fresh Record Highs on Broad-Based Rally

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Indian shares rise

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By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

January 2, 2026 at 11:49 AM IST

Indian equities ended sharply higher on Friday, extending early-year momentum as broad-based buying lifted benchmarks to fresh record levels. The Nifty50 surged 0.7% to an all-time closing high of 26,328.55 after touching an intraday peak of 26,340, while the BSE Sensex gained 0.67% to close at 85,762.01. The rally was driven by strong gains in financials, metals and automobile stocks, underpinned by optimism around robust December-quarter earnings. For the week, the Nifty and Sensex rose 1.1% and 0.9%, respectively, marking a firm start to 2026.

Market breadth remained positive, with the Nifty Midcap 100 and Nifty Smallcap 100 advancing 1.01% and 0.72%. Sectorally, Auto, Metal, PSU Bank, Realty and Consumer Durables indices climbed over 1% each, reflecting healthy participation beyond frontline names. FMCG was the lone laggard, slipping 1.19%. Overall sentiment stayed constructive despite lingering foreign portfolio outflows, as investors selectively rotated into cyclicals and domestically driven themes ahead of the earnings season, signalling improving risk appetite and confidence in India’s growth outlook.

Top Movers of the Day
IDBI Bank surged to an over 11-year high, rising to 11.1% to ₹115.10 amid heavy volumes; the stock later settled about 9.8% higher at ₹114.

Coal India hit a fresh 52-week high of ₹426.95, gaining up to 7% on a more than three-fold jump in trading volumes, with over 26.7 million shares changing hands.

Bajaj Auto reported a 14% YoY rise in total December sales to 369,809 units; domestic sales increased 4%, supporting sentiment around the stock.

Silver Touch Technologies soared 13% to a record high of ₹1,247 after announcing a sub-division of equity shares and a bonus issue.

Tembo Global Industries was locked in a 5% upper circuit at ₹607.75 after its subsidiary received a defence manufacturing licence from the Maharashtra government.

Hero MotoCorp gained over 3% after reporting a 40% jump in December dispatches; the stock touched ₹6,029.50, its biggest intraday rise since November.

Ola Electric Mobility jumped up to 8.66% to ₹40.77 after the company shared updates on its 2025 highlights and Hyper service expansion.

MCX rose about 4% to a new high of ₹2,277 as the stock turned ex-date for its 1:5 stock split.

Olectra Greentech advanced over 6% after announcing December 31, 2025, as the commercial operation date for its Hyderabad EV manufacturing facility.

Time Technoplast climbed as much as 5.1% to ₹197.80; the stock was trading about 2.2% higher at ₹192.35 in early trade.

ITC fell nearly 5% to a three-year low after brokerages downgraded the stock following the recent cigarette excise duty hike; the stock has dropped nearly 15% in two sessions.

Futures & Options
Nifty January 2026 futures closed at 26,478.30, trading at a premium of 149.75 points over the cash Nifty, which rose 182 points or 0.70% to settle at 26,328.55. Market volatility edged higher, with India VIX climbing 2.88% to 9.45, reflecting increased positioning activity after the benchmark hit record highs. ITC, Coal India and HDFC Bank emerged as the most actively traded stock futures in the F&O segment.

Bonds
Government bond yields edged higher on Friday as traders remained cautious ahead of fresh supply and a likely heavy state borrowing calendar. The benchmark 10-year yield rose to 6.6090% by the close, after ending at 6.5818% on Thursday, reflecting mild pressure from upcoming issuance. Despite the day’s uptick, the 10-year yield has declined 17 basis points over 2025 and continues to trade with a softer bias into the new year. Traders exercised caution as the RBI conducted a ₹320 billion 10-year bond auction, resulting in stable yields at present.

Forex
The rupee weakened on Friday, slipping below the key 90-per-dollar level to close 0.3% lower at 90.1950, its weakest close in two weeks, as persistent year-end dollar demand weighed on the currency. The rupee opened slightly firmer at 89.93 and held above 90 early in the session on dollar sales from state-run banks, but heavy buying from oil importers later pushed it past the psychological mark. Thinned liquidity due to a US holiday amplified intraday moves, resulting in the rupee logging its second consecutive weekly decline.

Crypto
Crypto markets opened 2026 on a positive note, with prices trading firmly in the green as investor sentiment improved after a volatile December. Bitcoin advanced 1.18% to $88,595, lifting its market capitalisation to about $1.76 trillion, as cautious risk-taking returned to digital assets. Ethereum moved back above the key $3,000 mark, while Dogecoin and Cardano outperformed, rallying more than 8% each.

US Stock Futures
US stock futures advanced early Friday as Wall Street opened trading for 2026 following a third straight year of double-digit gains. Dow Jones futures rose 0.3%, S&P 500 futures gained 0.6%, and Nasdaq futures climbed 1%, with the Nasdaq 100 outperforming after positive tech cues from Asia pushed a regional technology index to record highs. The upbeat start comes after a volatile end to 2025, which nonetheless delivered strong annual gains across major US equity benchmarks.

US Treasury Notes
US Treasury yield were little changed in thin holiday trading, with the benchmark 10-year yield hovering around 4.17%, broadly in line with the previous session. Yields across the curve remained in the low 4% range as investors looked ahead to the December payrolls report next week for fresh cues on the US economic outlook. Market pricing continues to reflect expectations of up to two Federal Reserve rate cuts later in the year, exceeding the Fed’s own projection of a single cut, while recent auctions across key maturities have shown mixed but steady demand.

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