Indian Equity Benchmarks Inch Towards Record Peaks
The Indian equity market began the new year on a positive note as benchmark indices surged in Friday’s afternoon trade. The BSE Sensex jumped 500 points to trade at 85,680, while the NSE Nifty 50 stood just 25 points shy of its all-time high of 26,325.8. Strong buying in banking, auto, and metal sectors powered the rally, though FMCG stocks faced mild selling pressure.
Out of the 30 Sensex components, 24 traded higher, signaling strong investor sentiment and optimism for 2026.
Market Nears Historic Highs
The recent surge brings markets close to surpassing their record levels set in late 2025. On December 1, 2025, the Sensex had hit an intra-day high of 86,159.02, while Nifty peaked at 26,325.8. The most recent closing highs, recorded on November 27, 2025, stood at 85,720.38 for Sensex and 26,215.55 for Nifty.
Analysts believe the market momentum reflects a combination of domestic investor resilience and global risk appetite returning after a volatile December.
Global Markets Show Mixed Cues
Asian markets displayed a mixed trend today.
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Korea’s KOSPI gained 1.29%, reaching 4,268 points.
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Hong Kong’s Hang Seng Index surged 2.25% to 26,205 points.
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Japan’s Nikkei slipped 0.37% to 50,339 points, while China’s Shanghai Composite edged up 0.09% to 3,968 points.
Meanwhile, Wall Street ended the first trading day of 2026 in the red. The Dow Jones Industrial Average dropped 0.63% to 48,063, Nasdaq Composite dipped 0.76%, and the S&P 500 was down 0.74%.
Domestic Investors Provide Strong Support
Despite heavy foreign institutional investor (FII) selling in recent months, domestic institutional investors (DIIs) have continued to support the market.
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On January 1, 2026, FIIs sold shares worth ₹3,268 crore, while DIIs purchased ₹1,525 crore.
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Throughout December 2025, FIIs offloaded ₹34,349 crore, but DIIs offset the selling with purchases worth ₹79,619 crore.
Analysts note that DII activity, driven largely by retail inflows into mutual funds and long-term equity growth expectations, has helped sustain market confidence.
Outlook for 2026
The first day of trading this year was relatively flat, with the Sensex closing 32 points lower at 85,189 on January 1. However, the strong rebound on Friday underscores investor optimism surrounding India’s economic growth prospects, favorable macro indicators, and the upcoming earnings season.
Experts suggest that if the Nifty surpasses the 26,325 mark, the next upside target could be around 26,500–26,700, provided global markets remain steady and FII outflows ease.
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