Indian benchmark indices marched into the first trading session of 2026 with marginal gains that were supported by domestic investors, even though analysts expect trading activity to remain somewhat muted since global markets are shut for the New Year’s holiday.
Strong gains in blue-chip Reliance Industries helped the 30-share BSE Sensex climb 223.54 points to 85,444.14 in early trade on Thursday. The 50-share NSE Nifty went up by 65.75 points to 26,195.35.
Ajay Bagga, Banking and Market Expert, said Indian markets saw short covering on the last trading day of CY2025, but that FPIs remained heavy sellers in the cash market while DIIs stepped in for a record 87th successive day of net inflows.
“FPI positioning remains extremely short at 91 per cent short. Gift Nifty is indicating a positive open. Volumes will be low with most global markets on holiday,” he said.
Bagga is optimistic about 2026, saying continued stimulus through big tax cuts in the US is expected to support corporate earnings. Japan and China are also considering large stimulus measures, while the German stimulus is likely to aid the broader European economy in 2026.
Also Read: Economy 2025: Hard lessons that made the ride bumpy
However, geopolitical tensions cast their shadow on markets’ performance, as stand-off between China-Taiwan, Russia-Ukraine, and US-Venezuela have stretched into 2026.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,597.38 crore on Wednesday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹6,759.64 crore, according to exchange data.
Brent crude, the global oil benchmark, declined 0.78 per cent to USD 60.85 per barrel.
On Wednesday, the Sensex jumped 545.52 points or 0.64 per cent to settle at 85,220.60. The Nifty soared 190.75 points or 0.74 per cent to end at 26,129.60.
In the entire 2025, the Sensex rallied 7,081.59 points or 9 per cent, and the Nifty zoomed 2,484.8 points or 10.50 per cent.
In the broader market, indices traded with a positive bias. The Nifty 100 was up by 0.18 per cent, the Nifty Midcap 100 surged 0.23 per cent, and the Nifty Smallcap 100 gained 0.18 per cent in early trade.
Sectoral indices on the National Stock Exchange of India also opened mostly higher. The Nifty Auto index rose 0.24 per cent, Nifty IT gained 0.13 per cent, Nifty Media surged 0.19 per cent, Nifty PSU Bank advanced 0.15 per cent, Nifty Pharma moved up 0.05 per cent, and Nifty Consumer Durable climbed 0.24 per cent.
Before the US markets closed for the New Year’s holiday, the S&P 500 slipped on the last day but still ended 2025 with gains of around 16 per cent, supported by continued AI-related optimism. The Dow Jones Industrial Average and the Nasdaq Composite also posted double-digit gains for the year.
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