Market Rally on January 2

On January 2, 2026, the Indian benchmark indexes Sensex and Nifty closed higher, with the Nifty setting a new record high during a widespread rally. The NSE Nifty increased 182 points, or 0.70%, to close at 26,328.55, while the BSE Sensex increased 573 points, or 0.67%, to close at 85,762, indicating a robust start to the new year.

Market Performance

During the session, the Nifty 50 reached an intraday high of 26,340 before finishing close to that level. The midcap and smallcap indices were up almost 1% each, indicating that broader markets also improved. While FMCG firms like ITC underperformed as a result of recent tax-related challenges, the banking and auto industries led the gains.

Top Gainers and Losers

Gainers: NTPC, Trent, and Jio Financial Services were among the top performers, while Coal India increased 7% and Hindalco increased 4%.

Selling pressure was applied to ITC, Nestle India, Axis Bank, Kotak Mahindra Bank, and Tata Consumer Products.

Sectoral Trends

Auto, metal, real estate, consumer durables, power, and PSU banks also saw gains in sectoral indexes, all of which increased by about 1%. The Bank Nifty reached a new all-time high. FMCG, on the other hand, lost weight, with the index falling sharply in recent sessions as a result of increases in cigarette excise duties that affected ITC.

Broder Context

The surge was bolstered by domestic purchases, while foreign institutional investors continued to withdraw. Earlier in the day, GIFT Nifty futures showed a bullish open. The bullish candle formation on daily charts, according to analysts, indicates continued momentum into the new year.