Summary of this article
Sensex jumped 573 points to close at 85,762.01, while Nifty 50 rose 0.70 per cent to settle at 26,328.55
Barring FMCG, all other sectoral indices ended in the positive territory
Capping the gains in the indices was cigarette-maker ITC, which fell 3.78 per cent
After a brief pause, benchmark indices continued to recover to close near their one-month high on January 2, 2026. Both the Sensex and Nifty 50 started on a positive note and traded higher for most part of the session, however, in the second half saw a brief bout of selling followed by a quick fag-end recovery.
At close, Sensex was up 573.41 points, or 0.67 per cent, at 85,762.01, and Nifty 50 was up 182 points, or 0.70 per cent, at 26,328.55.
The broader market indices mirrored the trend in benchmarks and closed high up in the green. The Nifty Next 50 and Nifty Midcap 100 closed more than a per cent higher, while the Nifty Smallcap 100 surged 0.72 per cent up. The Nifty 500, which captures the movement of over 92 per cent of the total free-float market capitalisation of all NSE-listed stocks, also closed 0.79 per cent up.
Except FMCG, All Sectoral Indices Gain
Barring FMCG, all other sectoral indices ended in the positive territory. Nifty FMCG, dragged by index heavyweight ITC, which closed 3.78 per cent lower. The shares of India’s largest cigarette maker and the manufacturer of popular brands such as Gold Flake and Classic, fell over 13 per cent in two days after the government announced a new tax on cigarettes, which is expected to make them costlier. The selling pressure in ITC spilled over to the broader FMCG pack. The Nifty FMCG index touched its weakest level since April 7, 2025.
On the other hand, leading the gains were Nifty Realty, Nifty PSU Bank and Nifty Metal, all three rising around 1.50 per cent. Nifty Auto, Nifty Media, and Nifty Consumer Durables also gained over 1 per cent each. Auto stocks gained after strong monthly auto sales figures
Nifty Bank, which tracks the performance of 12 most valuable and actively traded banking stocks, closed 0.74 per cent to reclaim the 60,000 mark, closing at 60,150.95.
Nifty 50: Top Gainers & Losers
Among the Nifty 50 constituents, public sector undertakings (PSUs) Coal India and NTPC rallied 7.15 per cent and 4.56 per cent, emerging as the top gainers of the day. Metal major Hindalco and Tata Group's fashion and grocery stores operator rose 3.53 per cent and 2.39 per cent. Further, State Bank of India, Jio Financial Services, Bajaj Finance, ONGC, Power Grid, Maruti Suzuki India, and Bharat Electronics also gained between 1.41 per cent and 2.12 per cent.
Capping the gains in the index were cigarette-maker ITC, which fell 3.78 per cent, and Kotak Mahindra and Nestle India, which slipped 1.26 per cent and 1.13 per cent, respectively. Shriram Finance, Bajaj Auto, Tata Consumer, and Axis Bank also closed in the red, falling between 0.42 per cent and 0.94 per cent.
Total 40 stocks closed in green, while the remaining 10 closed in the red.
of the total 3,246 stocks traded on the NSE, 2,247 stocks advanced, 895 stocks declined and 104 stocks remained unchanged.
Stock Market Outlook: What To Watch Next
The rupee extended its decline for the third straight session, pressured by sustained foreign fund outflows. At the time of writing, the domestic currency slipped 15 paise to trade at 90.11 against the US dollar, marking its weakest level in nearly two weeks. Movements in the rupee and the dollar will remain key triggers for the equity markets in the near term, especially for sectors sensitive to currency fluctuations.
The December quarter (Q3) earnings season is also about to begin, with the IT bellwether Tata Consultancy Services (TCS) and HCL Technologies reporting their numbers on January 12. The Q3 earnings season is also likely to set the tone for D-Street in the near term.
When trading resumes on January 5, market participants will also be awaiting US manufacturing Purchasing Managers' Index (PMI) data for December, which will be crucial for gauging the health of the world's largest economy, and which could influence risk sentiment in emerging economies like India.
