On the Sensex, gains were led by NTPC, Trent, Bajaj Finance, Power Grid and Maruti Suzuki, with shares rising between 1.5% and 5%.The broader markets also strengthened, with mid-cap stocks up about 1% and small-cap stocks up roughly 0.7%.
Heavyweights from the banking sector supported this advance. The banking index rose 0.7%, with private sector lenders rising 0.5% and state-owned banks rising 1.2%, with both segments hitting new highs.
Auto stocks outperformed, pushing the sector index up 1.2%. Hero MotoCorp gained 1.6% and TVS Motor rose 1.5% after strong sales in December.
ITC continued its decline after brokers warned of an impact on earnings due to a sharp hike in cigarette taxes. Shares of the Gold Flake maker fell 4%, dragging the fast-moving consumer goods index down 1.2%. Metal stocks rose 1.4% following firmer global prices, while a weaker US dollar and signs of stronger industrial activity in China supported the sector.
Expert views
After the New Year holidays, global markets started 2026 on a positive note as strong domestic auto sales helped Indian stocks hit a new all-time high, said Vinod Nair, head of research at Geojit Investments. He added that investor sentiment remains broadly constructive as attention turns to third-quarter earnings, which are expected 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.
Global markets
European stocks opened 2026 at new record levels, extending last year’s rally as investors prepared for a year likely to test the sustainability of the AI-driven boom amid leadership changes at the U.S. Federal Reserve, higher government spending and the prospect of greater policy volatility under President Donald Trump.
In London, the FTSE 100 crossed the symbolic 10,000 mark for the first time, while the pan-European STOXX 600 hit another record high and was on course for a third straight weekly gain.
The Asian markets also started the year on a strong footing. Shares in Hong Kong rose to a month-and-a-half high, while shares in Taiwan, South Korea and Singapore hit record levels. Markets in Japan and China were closed for holidays. Precious metals extended last year’s gains, with spot gold rising 1.6% to $4,384 per ounce and spot silver rising 4.3% to $74.37 per ounce.
Rough impact
Oil prices were little changed at the start of 2026 trading, stabilizing after the steepest annual decline since 2020, as investors weighed worries about ample supply against geopolitical risks related to the war in Ukraine and possible disruptions to Venezuelan exports.
Brent crude futures fell 4 cents to $60.81 a barrel at 1029 GMT, while US West Texas Intermediate crude fell 3 cents to $57.39.
Rupee vs dollar
The Indian rupee weakened on Friday, breaching the 90 per dollar threshold to close 22 paise lower at 90.20 (provisional), pressured by gloomy domestic macroeconomic data and a firmer US dollar in global markets.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.07% to 98.38.
(with input from agencies)
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