The Economic Times News

Indias equity market enters 2026 on a firmer footing, supported by earnings recovery, robust SIP flows, favourable policies, and manageable inflation. While large caps remain core, small- and mid-cap gains are likely to be selective. Investors are advised to prioritise quality, valuations, and diversification, with modest allocations to gold and silver, while remaining mindful of global macro risks and domestic vulnerabilities.

Nifty closed the week over 1% higher after hitting a fresh lifetime high, supported by buying in metal and PSU bank stocks. Technical indicators signal continued momentum, with a buy-on-dips strategy advised above 26,000. This week, markets will track geopolitical developments, crude oil trends, Wall Street cues and FII flows for direction.

The capture of Venezuelan President Nicolas Maduro following US airstrikes is unlikely to significantly disrupt the global oil market. Venezuela's oil infrastructure remains operational, and its declining output represents a small fraction of global supplies. While rebuilding the sector is ambitious, current oversupply forecasts suggest market stability.

Bajaj Finance reported a strong December-ended quarter with new loans booked jumping 15% year-on-year to 1.39 crore. The company's Assets Under Management (AUM) saw a significant 22% growth, reaching approximately Rs 4,85,900 crore. The customer franchise also expanded to 11.54 crore, indicating robust business expansion.

Improving macro indicators, stronger Q2 GDP growth, benign inflation and an end to corporate earnings downgrades underpin the positive view, he said, while identifying 10 fundamentally strong stocks offering potential upside of up to 36%.

Foreign Institutional Investors (FIIs) continued their selling spree into 2026, offloading Indian equities worth Rs 7,608 crore in the first two trading sessions. This follows record outflows of Rs 1.66 lakh crore in 2025, driven by elevated valuations and the AI trade. Experts anticipate a turnaround in 2026, with improved fundamentals and GDP growth expected to attract net FII inflows.

Nifty closed at a lifetime high, gaining 1.10% last week while consolidating within a defined range. Despite a bullish technical setup, the index shows signs of fatigue near the upper Bollinger band. The coming week anticipates a steady start with a positive bias but a cautious undertone, with key resistance at 26,500 and supports at 26,000.

Warren Buffett has officially stepped down as CEO of Berkshire Hathaway. Greg Abel now leads the conglomerate. Buffett expressed strong confidence in Abel and Berkshire's enduring legacy. The company's shares saw a slight dip following the announcement. This marks a significant transition for the investment giant after Buffett's six-decade leadership.

Nifty reached new all-time highs, driven by large-cap stocks, despite a weaker broader market. Positive sentiment stems from Q3 results expectations and budget hopes, with selective mid-cap buying. Analysts see continued upside for Nifty and Bank Nifty, while FII caution persists.

In a recent report, the brokerage has shortlisted six blue-chip stocks across multiple sectors that it believes offer attractive value and the potential to deliver returns of up to 34% over the next year.

Based on September quarter holdings, the portfolio includes 49 listed Indian companies with a total value of over Rs 9,015 crore as of December 31, 2025. Around 28 stocks recorded declines ranging from 10% to 60% during CY25, including five counters that plunged by more than 50%. We highlight the portfolios top gainers as well as the major laggards in CY25.

Bharat Coking Coal Limited (BCCL) will launch its Rs 1,300 crore IPO on January 8, closing January 13, with promoter Coal India offloading shares via an offer for sale. The company, India's largest coking coal producer, will announce its price band on January 5. BCCL reported a net profit of Rs 1,240 crore for FY25.

Maverick fund manager Siddhartha Bhaiya, known for identifying small-cap multibaggers and drawing inspiration from Warren Buffett, passed away on December 31, 2025, due to cardiac arrest. The 47-year-old, who once described the current market as a ubble of epic proportions, was a strong advocate for gold and value investing.

His Rs 4,000 crore PMS, the India Opportunities Fund, delivered a stellar 33% CAGR over 13 yearsturning a Rs 10 lakh investment into nearly Rs 4 crore.

Market breadth has turned positive, with 73% of Nifty 50 stocks trading above their 50 EMA. This indicates expanding participation in the ongoing rally. Technical indicators suggest a strong upward trend for Nifty and Bank Nifty. Analysts recommend a buy-on-dips strategy for Nifty as long as it holds above 26,000. Bank Nifty is expected to move towards 61,500.

Deepak Shenoy of Capitalmind MF outlines investment strategies amidst market shifts, advocating for conglomerate demergers and diversification for tobacco firms. He notes QSR valuations are stretched but sees potential in electronics manufacturing and power distribution, with PSU banks expected to lead financials and autos benefiting from policy support.

Deepak Shenoy of Capitalmind MF outlines investment strategies amidst market shifts, advocating for conglomerate demergers and diversification for tobacco firms. He notes QSR valuations are stretched but sees potential in electronics manufacturing and power distribution, with PSU banks expected to lead financials and autos benefiting from policy support.

Bitcoin hovers near $90,000 and Ethereum above $3,000, indicating a market consolidation phase. Both cryptocurrencies saw gains in the past 24 hours and week, with major altcoins also experiencing significant upticks. Analysts suggest cautious optimism as liquidity improves, with Bitcoin showing mild upside and Ethereum demonstrating stronger momentum, potentially setting the stage for further growth.

Indian markets are set for a robust year. Experts foresee renewed economic momentum fueled by government support. Expect double-digit nominal GDP growth translating to strong earnings. Financials are expected to lead the rally, with autos and technology also showing promise. Government spending on infrastructure, railways, and defence will be key drivers.

In a recent report, the brokerage has identified seven smallcap stocks spanning utilities, financials and consumer discretionary that could offer value and potentially deliver returns of up to 54% over the next year.

Despite the modest market rally, 15 stocks from the BSE 500 index recorded gains in all five sessions.

India's 2026 IPO market begins cautiously with no mainboard issues, focusing instead on three SME offerings in infrastructure, electric mobility, and textiles. Gabion Technologies, Victory Electric Vehicles, and Yajur Fibres are set to launch their public issues next week, aiming to raise funds for expansion and working capital amidst a typical slow start to the year.

Markets kicked off the new year with a strong rally, mirroring 2025's trend. Investors saw significant gains across stocks, bonds, and commodities, driven by AI enthusiasm and easing inflation. However, this broad synchrony raises concerns about diversification's effectiveness and the sustainability of future returns, with some experts warning of anemic growth ahead.

The U.S. stock market anticipates a dynamic start to 2026, with crucial jobs data on January 9th poised to signal the Federal Reserve's next move on interest rates. Investors are also keenly awaiting Supreme Court decisions on tariffs and a new Fed chair, alongside the upcoming corporate earnings season.

Major hedge funds like D.E. Shaw and Bridgewater Associates achieved significant double-digit gains in 2025, fueled by an AI-driven stock market rally and global economic volatility. These top performers navigated a year of record fluctuations, with some funds posting their highest profits ever, attracting substantial investor interest.

Markets anticipate a busy start to the year. Key U.S. jobs data is due. OPEC+ meets on oil output. Commodity indexes rebalance. Initial public offerings are expected to increase. Investors remain optimistic despite potential risks from U.S. Supreme Court rulings and a new Federal Reserve chair announcement.

Berkshire Hathaway's post-Buffett era commenced with a slight dip in shares as Greg Abel assumed the CEO role. The conglomerate, now valued over $1 trillion, faces challenges finding needle-moving acquisitions amidst a record cash pile. Abel inherits a strong financial position, with Buffett remaining as chairman to support the transition.

Major indexes like the Dow and S&P 500 closed higher on Friday, ending a four-day losing streak to begin 2026. Chip makers, industrials, and utilities fueled the gains, while tech giants and consumer discretionary stocks saw declines.

ITC shares plummeted to a three-year low following a government excise duty hike on tobacco products. Brokerages downgraded the stock, citing fears of dampened cigarette demand and significant impact on profitability. Investors are advised to wait for clarity on price hikes and volume trends before considering buying.

IndusInd Bank announced the resignations of two senior executives, Rana Vikram Anand and Anish Behl, who are leaving to explore new opportunities. Anand will depart in April 2026, while Behl's tenure concludes in January. These departures follow a series of senior-level exits, though the bank has simultaneously bolstered its leadership with recent appointments in wholesale banking, data, and human resources.

Adani Enterprises is launching a public issue of non-convertible debentures to raise up to one thousand crore rupees. The issue offers various tenors and interest payment options. This fundraising aims to meet the company's financing needs, including refinancing and general corporate purposes. The debentures are rated CARE AA- and AA- (Stable) by respective agencies.

Sebi is developing an AI-powered tool to analyze the cyber safety preparedness of regulated entities, aiming to strengthen risk-based supervision. Additionally, a working group is being formed to create a technology roadmap for market infrastructure institutions, ensuring innovation enhances market integrity.

The Indian rupee depreciated by 22 paise to settle at 90.20 against the US dollar on Friday. This decline was attributed to disappointing macroeconomic data, foreign fund outflows, and strong dollar demand from importers. However, weak crude prices and a surge in domestic equities provided some support.

Indian benchmark indices, Nifty50 and Sensex, closed at record highs on Friday, marking their best weekly gains in seven weeks. This surge followed a period of range-bound trading, with analysts predicting further upward movement. Market participants anticipate significant gains for both indices in 2026, despite a cautious VIX.

Sebi has introduced a phased hike in net-worth and liquid capital norms for merchant bankers starting January 2026, alongside tighter underwriting limits, governance standards and revenue thresholds. The move aims to strengthen market intermediaries amid Indias booming IPO pipeline, ensuring stronger compliance, better capital buffers and improved investor protection.

Sebi has cleared eight companies, including Indira IVF, Chartered Speed, Glass Wall Systems, Shriram Food Industry, RKCPL, Tempsens Instruments, Jerai Fitness and Rays of Belief, to proceed with IPO plans. The approvals span healthcare, mobility, infrastructure and consumer sectors, signalling steady regulatory momentum ahead of an expected listing window in 2026.

Sebi Chairman Tuhin Kanta Pandey said the Sensexs 40-year journey mirrors Indias transformation from manual, inward-looking markets to a globally integrated, technology-driven ecosystem. Speaking at a BSE event, he highlighted how the indexs evolving composition reflects shifts in industry, governance, innovation and long-term value creation across decades.

Cupid expects Q3 FY26 to be its best-ever quarter, driven by strong demand and smooth execution. The company said its order book is at a record high and expressed confidence in surpassing its FY26 revenue and profit guidance. Capacity expansion and new FMCG products are also progressing as planned.

The Dow Jones Industrial Average rose 42.7 points, or 0.09%, at the open to 48,105.98. The S&P 500 rose 32.6 points, or 0.48%, at the open to 6,878.11, while the Nasdaq Composite rose 239.5 points, or 1.03%, to 23,481.493 at the opening bell.

Ahmedabad, Adani Enterprises Limited (AEL), the flagship company of the Adani Group, on Friday announced the launch of its third public issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) of Rs 1,000 crore, offering up to 8.90 per cent per annum.

Avenue Supermarts, operator of DMart, posted a 13% YoY increase in standalone Q3 revenue to Rs 17,613 crore, while its store count rose to 442. The provisional update reflects steady growth momentum for the retail chain, supported by continued expansion and consistent improvement in revenue across its operations.

PNB reported a steady Q3 update with global business rising 9.6% YoY to Rs 28.92 lakh crore and advances growing 11%. Deposits saw healthy expansion, while domestic business improved 9% YoY. The banks shares gained over 1% as it continued to trade above key moving averages, reflecting strong investor interest.

Five Sensex heavyweights, Maruti Suzuki, SBI, Reliance Industries, L&T, and M&M, hit fresh 52-week highs on Friday amid a strong market rally.

LIC has incurred losses of over Rs 10,400 crore in just two days as ITC shares plunged 14% following a steep excise duty hike on cigarettes. The tax increase triggered heavy selling and multiple broker downgrades, with analysts warning that significant price hikes may be required to offset the higher duty burden.

Indian government bonds slipped on Friday after a weak auction revived supply concerns, with traders wary ahead of the states' January-March borrowing calendar due later in the day.

Marico delivered a steady Q3 performance with revenue growth in the high twenties and improving India volumes. Lower copra costs aided margins, while Parachute remained resilient and value-added hair oils grew strongly. International markets posted double-digit growth. Marico expects sustained volume-led expansion and sequential margin improvement in the coming quarters.

Siddhartha Bhaiya, the celebrated contrarian investor behind the India Opportunities Fund, built a 33% CAGR track record by spotting smallcap and midcap multibaggers early. His bold callsfrom raising 80% cash to shifting heavily into gold ETFsturned Rs 10 lakh into Rs 4 crore in 13 years, cementing his legacy.

Indian equity benchmarks ended Fridays session firmly in the green, supported by strong buying in auto, metal and PSU banking stocks. While Ola Electric and Coal India emerged as key gainers, stocks such as ITC and Cupid witnessed sharp selling pressure.

Prateek Agarwal, MD & CEO of MOAMC says 2026 could mark a selective recovery for Indian equities as earnings improve, valuations ease and foreign investors return. After a narrow, FPI-driven market in 2025, broader participation may emerge if Q3Q4 results remain strong and currency stability supports renewed global risk appetite.