BSE Sensex ended 573.41 points or 0.67 percent higher at 85,762.01, after rising over 740 points intraday.
Optimism around improving earnings prospects, the upcoming Union Budget, healthy auto sales, positive updates on banking operations and expectations on reforms and a possible US trade deal further boosted sentiment.
Steady domestic institutional inflows helped offset continued foreign selling, said Gaurav Garg, research analyst at Lemonn Markets Desk.
Bank Nifty & Midcap index posts record highs
The Bank Nifty continued its upward move and hit a new all-time high of 60,204 during the session to settle at 60,150.95. Rupak De, Senior Technical Analyst at LKP Securities, said the index remains a clear outperformer against the Nifty in the past sessions.
The midcap index fared better, recording a record high of 61,398.40 and settling with a 1 percent gain at 61,365.90, while the smallcap index rose 0.7 percent. On a sectoral level, all indices except FMCG ended in positive territory. Real Estate, PSU Bank, Metals and Auto topped the chart.
According to Vinod Nair, head of research at Geojit Investments, investor sentiment remained broadly constructive as attention turns to third-quarter earnings, which are likely to determine the near-term direction of the market.
Supportive fiscal policies and gradual monetary easing are likely to shape the investment landscape in 2026. However, investors are focusing on large-cap stocks for stability while selectively exploring mid-cap opportunities in cyclical sectors and areas driven by domestic growth, Nair said.
Top Nifty 50 Gainers and Losers
Shares of Coal India, NTPC, Hindalco, Trent, SBI and Jio Financial led the Nifty 50 gainers, while ITC, Kotak Mahindra Bank, Nestle India, Shriram Finance and Bajaj Auto were major laggards.
Coal India was the Nifty’s biggest gainer after it allowed direct participation of foreign coal buyers from select countries in its e-auctions.
Auto stocks continue their upward momentum, boosted by strong sales in December.
Metal stocks gained strength on the government’s safeguard duty on certain steel products to curb cheap imports from China and rising commodity prices.
ITC shares extended losses as investors worried about earnings pressure from higher taxes on cigarettes.
A total of 4,371 shares traded on the BSE, of which 2,772 rose, 1,449 fell and 150 remained unchanged. The number of stocks that hit their 52-week high was 185, while 83 stocks hit their 52-week low, indicating stronger bullish momentum. Additionally, five stocks were in the upper circuit, compared to six stocks in the lower circuit.
Midcap and smallcap movers
Among the midcap index, Torrent Power, IREDA, NHPC, Dabur India and National Aluminum rose 5-6 percent, while Waaree Energies, APL Apollo, Godfrey Phillips, ATHL and PB Fintech fell 1-3 percent.
Among smallcap stocks, Ola Electric, JBM Auto, Anant Raj and CESC rose 5-9 percent, while Radico, Lal Path Labs, MRPL and Aegis Vopak fell 1-5 percent.
Markets are expected to remain firm with investors focusing on pre-quarter business updates and the start of Q3 earnings season, said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Global markets
Asian markets: South Korea’s Kospi index and Hong Kong’s Hang Seng index ended higher, while China’s Shanghai index and Japan’s Nikkei were closed for a holiday.
European markets traded higher.
The American stock markets were closed on Thursday for New Year’s Day.
FIIs sold shares worth ₹3,268.60 crore on Thursday. DIIs bought shares worth ₹1,525.89 crore. BSE Sensex fell 32 points or 0.04 per cent to end at 85,188.60 on Thursday, while Nifty 50 rose 16.95 points or 0.06 per cent to 26,146.55.
Published on January 2, 2026
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