The Economic Times News

PSU banks outperformed the BFSI sector in Q3, driven by stronger year-on-year credit growth, while smaller private banks and NBFCs faced transitional pressures. HDFC Bank expects FY26 growth in line with the system amid improving liquidity conditions. Analyst Kaitav Shah highlights asset quality, credit costs and selective opportunities across banking, NBFCs and small finance banks.

Japan's Nikkei closed at a more than two-month high on the first trading day of 2026, led by chip-related stocks, as investors brushed off the potential impact of U.S. military action in Venezuela.

Bharat Coking Coals upcoming IPO has attracted strong market interest, reflected in a high grey market premium. As Coal Indias largest coking coal arm, the company plays a critical role in Indias steel supply chain, with rising production, sizeable reserves and healthy profitability. However, analysts caution that GMP trends can shift once subscriptions open.

Australian shares ended Monday flat. Iron ore miners saw gains, while consumer discretionary and energy stocks declined. Trading volumes were notably low. Asian markets, however, experienced a significant surge, reaching record highs driven by artificial intelligence optimism. Australian equities did not mirror this trend. Miners climbed, while energy stocks reversed earlier gains. Interest rate-sensitive sectors faced pressure.

Indian government bonds experienced a decline on Monday. This pushed the benchmark 10-year yield towards a two-week high. Traders are factoring in significant state borrowing. Demand is weak, and liquidity is tight. States plan to raise a record 5 trillion rupees between January and March. The Reserve Bank of India will purchase bonds to inject cash. U.S.

Waaree Energies shares dropped amid heavy selling, with volumes sharply above the recent average. The decline comes days after the stocks inclusion in the NSEs F&O segment from the January series, which appears to have triggered increased trading activity and volatility.

Coal India shareholders must be on the companys register as of January 1 to apply under the shareholder quota for the Bharat Coking Coal IPO, which opens on January 9 and is entirely an offer for sale.

US military action in Venezuela impacts Indian companies with energy, engineering, and pharmaceutical ties. ONGC and Reliance Industries face potential shifts in oil supplies and valuations. Engineers India has an on-ground presence. Pharmaceutical firms like Sun Pharma and Glenmark Pharma operate through subsidiaries. Jindal Steel manages an iron ore complex. These developments highlight geopolitical risks for cross-border operations.

Despite geopolitical shifts, equity market fundamentals remain strong, with technology and AI continuing to attract investor interest. Matt Orton of Raymond James advises focusing on growth, earnings expansion, and margin improvement, highlighting cyclical sectors like financials, industrials, and defense as key opportunities globally.

Defence stocks witnessed a sharp uptick on Monday after the US launched a major military operation in Venezuela over the weekend, heightening geopolitical tensions. Investor interest rose across HAL, BEL, BDL, Solar Industries, and MTAR as markets priced in expectations of higher global defence spending.

Tata Steel shares have rallied over 10% in six sessions as management commentary on domestic expansion, capacity additions and policy support outweighed concerns around global pricing pressure and trade disruptions.

Global markets show caution amid unusual geopolitical developments, with Asian equities rising and oil prices stable. Precious metals, however, surged, with gold and silver acting as clear risk hedges. Peter McGuire highlights that while energy markets remain under pressure, industrial and precious metals are poised for significant gains in the coming years.

Despite heightened geopolitical tensions from the U.S. strike on Venezuela, crypto markets remained resilient, with Bitcoin hovering near $93,000 and Ethereum above $3,000. Strong technical setups, stablecoin inflows, and renewed institutional interest have supported a bullish trend, while altcoins and memecoins saw notable gains, reflecting growing market maturity and investor confidence.

NHPC shares extended gains for a fifth straight session, rising over 10% in five days, supported by plans to raise Rs 2,000 crore through bond issuance and strong technical indicators.

Crude oil prices continue to remain range-bound despite political turmoil in Venezuela and US sanctions, says Vandana Hari of Vanda Insights. Ongoing uncertainty over leadership, continued curbs on Venezuelan exports and long timelines for any US oil investment limit upside risks. She says Indias oil outlook remains largely unaffected for now.

IDBI Bank shares slipped despite a strong December-quarter update. The bank reported a 12% year-on-year rise in total business to Rs 5.46 lakh crore, supported by healthy growth in deposits and credit.

Bandhan Bank's shares surged following a positive business update, with loans and advances growing 10% year-on-year to Rs 1.45 lakh crore. While total deposits saw an 11.1% increase, a slight quarter-on-quarter dip and a declining CASA ratio were noted. Improved asset quality, with collection efficiency at 98.1%, provided investor comfort.

Cupid and TFCI saw divergent moves after both hit lower circuits on Friday. Cupid extended its slide despite management clarification, while TFCI rebounded on fresh buying, including Ekta Halwasiyas block deal. Cupid highlighted record Q3FY26 performance and a strong order book, whereas TFCI announced plans to co-sponsor two AIFs.

Emerging-market bonds are set to remain resilient in 2026 as domestic investors now hold a larger share of local-currency debt, reducing vulnerability to currency swings and global volatility. Lower foreign participation, stronger local demand and weakening correlations with U.S. Treasuries are helping deepen markets and support stability across major emerging economies.

Hindustan Copper shares jumped on January 5, tracking a nearly 3% rise in LME copper prices. The stock has gained 10% over three sessions. Experts say copper fundamentals remain strong, driven by AI, data centres and green energy demand, while supply risks from mine disruptions and labour unrest support prices.

Geopolitical risk has resurfaced as a key market driver after the U.S. capture of Venezuelas president, with investors weighing near-term uncertainty against longer-term implications for oil supply, global markets and risk assets.

Indian road and highway stocks are experiencing significant declines. Investor appetite is low due to a flat Budget 2025 capex and reduced market share for listed developers. Experts are advising caution for investors. Companies are facing revenue contraction and volatile profitability. The outlook suggests continued stress in the road construction sector.

Indian equities experienced volatility on Monday, with the Sensex and Nifty fluctuating as investors balanced positive corporate earnings against escalating geopolitical risks. Early gains were tempered by concerns over U.S. military actions in Venezuela, leading to a market caught between domestic support and global uncertainty.

Silver and gold prices surged sharply on Monday as the US took control in Venezuela, triggering a global rush toward safe-haven assets. MCX silver futures jumped Rs 9,900 per kg, while gold rose over Rs 2,000 per 10 grams. Tight physical supply, geopolitical tensions, and expectations of U.S. rate cuts are reinforcing the bullish momentum.

US markets head into the first full trading week of 2026 facing potential volatility as investors track geopolitical developments, key economic data including jobs and inflation, and the start of the corporate earnings season.

Investors face a choice between Hindustan Copper and Hindustan Zinc for 2026. Copper's electrification demand supports Hindustan Copper, while silver's surge benefits Hindustan Zinc. Experts note strong rallies but caution about stretched valuations. Hindustan Copper offers operational clarity, but volatility is a concern. Hindustan Zinc is a strong silver play, though much upside may be priced in.

Indian markets begin the new year on a strong note as the Nifty hits a fresh all-time high. A Balasubramanian of ABSL AMC says improving earnings expectations, supported by GST cuts, RBI rate easing and value-based buying in asset-backed companies, are driving the rally ahead of the Q3 results season.

FSN E-Commerce Ventures, Nykaa's parent company, is set for focus after a strong Q3 FY2026 business update. The company anticipates consolidated GMV and NSV growth in the late twenties, driven by accelerated Beauty vertical performance and a revival in Fashion. Net revenue growth is expected at the upper end of the mid-twenties, marking a slight acceleration.

ITC shares slid to a three-year low after a sharp tobacco tax hike triggered widespread brokerage downgrades. Analysts warn that higher excise and GST rates could force steep price increases, hurt cigarette volumes, and compress margins, prompting target cuts and cautious outlooks despite ITCs diversified FMCG presence.

Bajaj Finance shares are set to be in focus after the lenders December-quarter business update showed steady growth in customers, loan bookings and assets under management, reinforcing confidence after a strong September-quarter earnings performance.

Multi Commodity Exchange of India Ltd (MCX) shares have surged, driven by persistent commodity volatility rather than just price increases. Analysts emphasize that trading volumes, not commodity prices, fuel MCX's earnings, with operating leverage kicking in when activity remains elevated. The sustainability of this volatility dividend and its impact on MCX's valuation are key investor concerns.

ONGC could unlock about US$500 million in unpaid dividends from its Venezuelan assets if US-led restructuring eases sanctions, Jefferies said. Recovery would bolster cash flows, balance sheet strength and investor sentiment, adding to robust profitability and valuation comfort, while reviving optionality from stalled Venezuelan projects.

Bank Nifty shows strong momentum entering earnings season, historically outperforming post-rate cuts. While Nifty's gains are concentrated, broader participation is noted. Analysts suggest focusing on large-cap banks for buying opportunities, anticipating further upside based on historical trends and recent performance.

As the Sensex completes 40 years, BSE MD & CEO Sundararaman Ramamurthy explains why Indias benchmark index remains relevant, the strategic rationale behind regaining control of its index business, and how technology upgrades, regulatory reforms and index investing are shaping BSEs turnaround and the next phase of capital market growth.

Global markets opened in 2026 on edge after a U.S. military operation led to the capture of Venezuelas President Nicolas Maduro. The escalation has heightened geopolitical risk, triggering volatility across crude oil, precious metals, currencies and equities, as investors reassess supply risks, safe-haven demand and near-term market direction.

Four Nifty50 stocks touched a 5-year swing high at the close on January 2, signalling strengthening bullish momentum. Such levels reflect sustained buying interest and improving trend strength. While considered a positive technical signal, a swing high remains distinct from a confirmed long-term breakout beyond established resistance.

Reliance Industries and other oil-linked stocks surged following a US military raid in Venezuela, reigniting geopolitical risks. ONGC, with stakes in Venezuelan projects, is expected to benefit from potential recovery of over $500 million in unpaid dividends, as highlighted by Jefferies.

As of January 2, seven stocks in the NSE F&O segment saw a sharp rise in futures open interest, signalling heightened derivatives activity. Rising open interest reflects growing participation, with traders initiating fresh positions or expanding existing exposure, pointing to stronger conviction on near-term price direction.

Jefferies sees Reliance Industries and ONGC as key Indian beneficiaries of a potential US-led restructuring of Venezuelas oil sector. While Venezuela holds vast reserves, its low current output limits any near-term impact on crude prices. Over the medium term, higher investment and production could reshape supply dynamics, with implications for margins, cash flows and valuations.

Bajaj Housing Finance's shares are poised for attention following a robust Q3 FY26 business update. The company reported significant year-on-year growth in disbursements, assets under management, and loan assets. This positive performance follows a strong Q2 FY26, with increased net profit and revenue.

HDFC Bank's Q3 FY26 business update revealed robust growth, with advances climbing nearly 10% year-on-year to Rs 29.46 lakh crore. Deposits also saw a healthy 11.5% increase, reaching Rs 28.60 lakh crore. This strong performance, particularly in term deposits, signals sustained lending momentum and deposit mobilization for India's largest private lender.

On January 2, six stocks from the Nifty500 universe showed improving momentum as their RSI levels crossed above 50. This shift reflects strengthening price action and rising bullish interest, offering traders early signals of potential upside as momentum builds across select stocks.