Mumbai: Indian stock markets maintained their bullish momentum on the second trading day of 2026, with benchmark indices touching fresh record levels driven by widespread buying activity. The NIFTY50 climbed 186 points to reach an unprecedented high of 26,332.15 during intraday trading.
The NIFTY Bank index, which tracks banking sector performance on the National Stock Exchange (NSE), also made history by hitting a lifetime peak of 60,152 on Friday, January 2.
The benchmark SENSEX rallied 518 points to reach an intraday peak of 85,706.49, though it remained 452 points below its all-time high of 86,159.02 recorded on December 1.
Multiple factors contributed to Friday’s stellar performance, pushing indices to unprecedented territory.
Asian Markets Provide Positive Momentum
Domestic equities drew strength from the broader Asian market sentiment, with most regional bourses closing in positive territory on Friday.
Hong Kong’s Hang Seng index surged 2.2% to 26,189.79, powered by a strong rally in technology stocks. E-commerce behemoth Alibaba gained 3.2%, while search and technology firm Baidu soared 7.5% following its announcement to separately list its artificial intelligence chip division Kunlunxin on the Hong Kong exchange in early 2027, pending regulatory clearances.
Trading remained suspended in Tokyo, Shanghai, Thailand, and New Zealand markets.
South Korea’s Kospi climbed 1.5% to 4,277.94, and Australia’s S&P/ASX 200 inched up 0.2% to 8,727.30.
Regional markets have received support from optimism surrounding artificial intelligence expansion, which is expected to boost demand for semiconductors and infrastructure required for data center development. Despite relatively soft manufacturing indicators across much of Asia, trade activity has shown resilience.
Large-Cap Stocks Lead the Charge
Friday’s upward trajectory was primarily driven by robust buying in heavyweight stocks including HDFC Bank, Reliance Industries, ICICI Bank, NTPC, Bajaj Finance, Infosys, and Maruti Suzuki. These stocks collectively added over 450 points to the SENSEX gains.
Among NIFTY50 constituents, Coal India emerged as the top performer, surging 6.32% to ₹435.75. The Maharatna public sector enterprise announced a policy shift allowing foreign coal buyers to participate directly in its e-auction platform.
According to a regulatory disclosure, Coal India has permitted coal consumers from neighboring nations including Bangladesh, Bhutan, and Nepal to directly bid in its Single Window Mode Agnostic (SWMA) auctions starting January 1, 2026. The company’s board recently approved modifications to the auction mechanism to enable this participation.
NTPC climbed 3.88% amid reports of the power giant pursuing international partnerships in technology and fuel sectors to advance its nuclear energy ambitions. The company aims to develop approximately 30 GW of company-owned nuclear capacity at various locations nationwide, aligning with the government’s target of 100 GW nuclear capacity by 2047.
Other gainers included Hindalco, Trent, Jio Financial Services, Bajaj Finance, Power Grid, and Maruti Suzuki, which advanced between 1.5% and 3.3%.
Conversely, ITC, Nestle India, Axis Bank, and Tata Consumer Products featured among the biggest decliners in the NIFTY50 index.
Broad-Based Sectoral Gains
Buying momentum spread across most sectors, with all major sectoral indices trading higher except the FMCG gauge. The NIFTY Realty index led sectoral gains with a 1.5% jump. The NIFTY PSU Bank, Metal, Consumer Durables, Auto, Financial Services, and Bank indices posted gains ranging from 0.6% to 1.2%.
Mid-cap and small-cap segments also participated in the rally, with the NIFTY Midcap 100 index advancing nearly 1% and the NIFTY Smallcap 100 index climbing 0.7%.
Market breadth remained overwhelmingly positive on the BSE, with 2,671 stocks advancing against 1,462 declining shares.
(With PTI inputs)