The Nifty 50 climbed as much as 193.45 points during the session to an all-time high of 26,340 before closing at 26,328.55, up 182 points, or 0.7%. The BSE Sensex advanced 573 points, or 0.67%, to finish at 85,762.
On the Sensex, gains were led by NTPC, Trent, Bajaj Finance, Power Grid and Maruti Suzuki, with the stocks rising between 1.5% and 5%.
Broader markets also firmed, with mid-cap shares climbing about 1% and small-cap stocks adding roughly 0.7%.
Banking heavyweights underpinned the advance. The bank index rose 0.7%, with private-sector lenders up 0.5% and state-run banks jumping 1.2%, both segments touching fresh highs.
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Auto stocks outperformed, pushing the sector index up 1.2%. Hero MotoCorp gained 1.6% and TVS Motor rose 1.5% after reporting strong December sales.
ITC extended its decline after brokerages warned of an earnings impact from a sharp increase in cigarette taxes. Shares of the Gold Flake maker slid 4%, dragging the fast-moving consumer goods index down 1.2%.Metal stocks gained 1.4%, tracking firmer global prices as a weaker U.S. dollar and signs of stronger industrial activity in China buoyed the sector.
Expert views
After the New Year holidays, the global markets initiated 2026 on a positive note, while strong domestic automobile sales helped Indian equities to touch a fresh all-time high, said Vinod Nair, Head of Research at Geojit Investments, adding that investor sentiment remains broadly constructive as attention turns to Q3 earnings, which are expected to guide near-term market direction.
“Supportive fiscal policies and gradual monetary easing are likely to shape the investment landscape in 2026. However, investors are focusing on large-cap stocks for stability while selectively exploring mid-cap opportunities in cyclical sectors and areas driven by domestic growth,” said Nair.
Global Markets
European equities opened 2026 at fresh record levels, extending last year’s rally as investors prepared for a year likely to test the durability of the AI-driven boom amid leadership changes at the U.S. Federal Reserve, higher government spending and the prospect of greater policy volatility under President Donald Trump.
In London, the FTSE 100 crossed the symbolic 10,000 mark for the first time, while the pan-European STOXX 600 touched another all-time high and headed for a third straight weekly gain.
Asian markets also started the year on a firm footing. Hong Kong shares climbed to a one-and-a-half-month high, while equities in Taiwan, South Korea and Singapore reached record levels. Markets in Japan and China were closed for holidays. Precious metals extended last year’s surge, with spot gold rising 1.6% to $4,384 an ounce and spot silver jumping 4.3% to $74.37 an ounce.
Crude impact
Oil prices were little changed at the start of trading in 2026, stabilising after posting their steepest annual decline since 2020, as investors balanced concerns about ample supply against geopolitical risks tied to the war in Ukraine and potential disruptions to Venezuelan exports.
Brent crude futures were down 4 cents at $60.81 a barrel by 10:29 GMT, while U.S. West Texas Intermediate crude slipped 3 cents to $57.39.
Rupee vs Dollar
The Indian rupee weakened on Friday, slipping past the 90-per-dollar threshold to close 22 paise lower at 90.20 (provisional), pressured by downbeat domestic macroeconomic data and a firmer U.S. dollar in global markets.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.07% at 98.38.
(with inputs from agencies)