Markets end week on a strong note with Nifty and Sensex extending winning streak
| Index | Price | Change | % Chg |
| Nifty 50 | 26,328.55 | 182.00 | +0.70% |
| Nifty Bank | 60,150.95 | 439.40 | +0.74% |
| Nifty Financial | 27,899.15 | 232.35 | +0.84% |
| BSE SENSEX | 85,762.01 | 573.41 | +0.67% |
Indian equity markets ended Friday’s session on a strong footing, marking the second trading day of 2026 with renewed optimism as benchmark indices touched fresh record levels. The Nifty 50 surged to a new all-time high of 26,340 intraday before closing marginally lower, while the Sensex jumped 573 points, underscoring the strength of the ongoing rally.
For the week, both the Sensex and the Nifty added about 1 percent each, extending gains for the second consecutive week, as investors continued to rotate into cyclical sectors and financials amid improving earnings expectations and supportive global cues.
At the close, the Nifty 50 settled at 26,328.55, up 182 points or 0.70 percent, while the BSE Sensex climbed 573 points, or 0.67 percent, to finish at 85,762.01. The Bank Nifty also hit a fresh record, reflecting sustained buying interest in lenders.
Also Read : Sunday Budget On The Cards As February 1 Emerges As Likely Date For Budget 2026
Broad-based buying lifts benchmarks as participation widens beyond frontline stocks
The rally was marked by broad-based participation, with gains spread across most sectors except FMCG. Broader markets outperformed the benchmarks, with the Nifty Midcap index rising 1 percent to a new high and the Nifty Smallcap index adding around 0.7 percent, highlighting improving risk appetite among investors.
Banking heavyweights played a key role in supporting the rally. The Bank Nifty rose 0.74 percent to close at 60,150.95, after touching an intraday record high of 60,203.75. Both private and public sector banks contributed, with PSU banks outperforming on the back of strong quarterly business updates.
Autos, metals and realty lead sectoral gains while FMCG remains under pressure
On the sectoral front, auto stocks emerged as clear outperformers, pushing the Nifty Auto index up over 1.1 percent. Strong December sales data boosted sentiment, with Hero MotoCorp gaining 1.6 percent and TVS Motor rising 1.5 percent, the latter also touching a fresh 52-week high.
Metal stocks advanced nearly 1.5 percent, tracking firmer global commodity prices amid a weaker US dollar and signs of improved industrial activity in China. Realty, consumer durables and media stocks also posted solid gains, reflecting rotation into cyclical and consumption-linked themes.
In contrast, the FMCG index slipped around 1.2 percent, weighed down largely by ITC, which extended its recent decline after brokerage downgrades linked to concerns over higher cigarette taxes.
Sensex gainers dominated by power, PSU and auto names
Among Sensex constituents, NTPC, Trent, Bajaj Finance, Power Grid and Maruti Suzuki led the gains, rising between 1.5 percent and 5 percent. PSU names such as Coal India and NTPC saw sharp buying, supported by dividend appeal and improving earnings visibility.
The top gainers on the Nifty included:
-
Coal India (+7.15%)
-
NTPC (+4.56%)
-
Hindalco (+3.53%)
-
Trent (+2.39%)
-
SBI (+2.12%)
On the flip side, ITC (-3.78%), Kotak Mahindra Bank, Nestle India, Shriram Finance and Bajaj Auto were among the laggards, though losses were largely stock-specific rather than sector-wide.
Stock-specific action intensifies as earnings season approaches
Several individual stocks witnessed heightened activity during the session:
-
ITC fell nearly 4 percent after Morgan Stanley downgraded the stock to ‘equal-weight’, citing concerns over earnings impact from higher excise duties.
-
TVS Motor Company touched a 52-week high after reporting a 50 percent jump in December sales, reinforcing optimism around the auto sector.
-
Hero MotoCorp gained about 2 percent on strong sales data.
-
Indian Bank, Punjab & Sind Bank, and other PSU lenders rose 3–5 percent after reporting robust Q3 business updates.
Nearly 180 stocks hit fresh 52-week highs, including IDBI Bank, Coal India, NALCO, Hindalco Industries, BHEL, Ashok Leyland, Maruti Suzuki, MCX India and M&M, signalling broad market strength.
Technical breakout reinforces bullish structure for Nifty
From a technical perspective, the market delivered a decisive breakout. The Nifty surpassed the key resistance zone of 26,200–26,300, confirming a continuation of the broader uptrend.
A long bullish candle on the daily chart suggests strong momentum, supported by:
-
A bullish crossover of the 20-day and 50-day exponential moving averages
-
The daily RSI breaking out of consolidation, indicating strengthening momentum
Analysts expect the near-term trend to remain firmly positive, with a buy-on-dips strategy favoured as long as the index holds above 26,000. A sustained move above 26,350 could open the door for a rally towards 26,600–26,750 in the coming weeks, while immediate support is seen around 26,200.
Global cues and domestic flows provide supportive backdrop
Positive global cues added to investor confidence. Asian markets such as Hong Kong’s Hang Seng surged 2.5 percent, while MSCI Asia Pacific rose over 1 percent. US equity futures also traded higher, signalling a firm global risk environment.
Domestic institutional investors continued to provide steady support, helping offset intermittent foreign fund outflows. Market participants remain optimistic that earnings recovery, a favourable Union Budget and potential progress on US–India trade discussions could act as key triggers for further upside.
As G Chokkalingam, Founder and Head of Research at Equinomics Research, told Reuters, “The monthly sales data from auto companies and business updates from other sectors signal a likely improvement in December quarter earnings, lifting markets.”
Rupee weakness and volatility indicators remain in focus
Despite strong equity performance, the Indian rupee slipped past the 90-per-dollar mark, settling at 90.20, weighed down by disappointing macro data and strength in the US dollar overseas. Currency weakness remains a near-term risk factor, particularly for foreign flows.
Meanwhile, India VIX rose nearly 3 percent to 9.45, indicating a modest uptick in volatility, though still at relatively low levels historically.
Key drivers behind the market rally
Several factors combined to propel markets higher:
Positive global cues across Asia and US futures
Global markets provided a supportive backdrop as key Asian indices traded higher and US equity futures signalled a firm start on Wall Street. Improved risk sentiment overseas encouraged domestic investors to add exposure to equities, helping Indian benchmarks sustain gains through the session.
Buying in large-cap and PSU stocks, especially banks and power names
Heavyweight large-cap stocks led the rally, with PSU banks and power companies attracting strong buying interest. Investors showed preference for fundamentally strong names with stable earnings visibility, while attractive valuations in select public sector stocks further supported inflows.
Strong auto sales data, boosting cyclical sectors
Auto stocks outperformed after companies reported healthy December sales numbers, reinforcing confidence in domestic demand. The strong data underscored the resilience of consumer spending and lifted broader cyclical sectors, adding momentum to the market upmove.
Improving technical structure, confirming an upside breakout
From a technical standpoint, the market delivered a decisive breakout above key resistance levels, strengthening the bullish trend. Momentum indicators and moving average crossovers signalled further upside potential, encouraging traders to add fresh long positions.
Broad participation, with midcaps and smallcaps outperforming
The rally was not limited to frontline indices, as midcap and smallcap stocks also witnessed meaningful participation. This broad-based buying reflected improving market breadth and rising investor confidence, suggesting a healthier and more sustainable market advance.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted, “The impressive 25.8 percent year-on-year increase in passenger vehicle sales confirms the growth momentum in the economy, which is crucial for sustaining earnings growth and market resilience.”
Outlook remains constructive as momentum builds
With benchmarks at record highs, market participants remain cautiously optimistic. While short-term consolidation cannot be ruled out after the sharp run-up, the underlying trend remains decisively bullish, supported by improving earnings visibility, sectoral rotation and strong technical signals.
As the earnings season unfolds and attention turns to the Union Budget, investors are likely to remain selective but constructive, using any near-term dips as opportunities to add quality names.
For now, Dalal Street appears firmly in the grip of the bulls, with Nifty’s record-breaking close reinforcing confidence that the rally still has legs in the early weeks of 2026.
Stocks in Ban List Today: NSE F&O MWPL Snapshot
SAIL remains in the NSE F&O ban list as its MWPL rose further to 138.99%, restricting fresh derivative positions and keeping trading activity volatile in the cash segment.
Several stocks such as IRCTC, Kaynes Technology, Bandhan Bank, RVNL, RBL Bank, LIC Housing Finance, Dixon Technologies and NBCC are nearing the MWPL limit, indicating heightened derivatives activity and the risk of entering the ban list if positions rise further.
There are no stocks in the possible exit list today, suggesting sustained high participation in F&O counters. Traders are advised to monitor MWPL levels closely, as sudden ban entry can impact liquidity and short-term price movement.
FAQs: NSE F&O Ban List, MWPL & Trading Impact
What does it mean for a stock like SAIL to remain in the NSE F&O ban list despite strong market momentum?
When a stock stays in the F&O ban list, it indicates that derivative positions have crossed regulatory limits, regardless of price strength. This often leads to higher volatility in the cash market and restricts traders from taking fresh futures and options positions until MWPL normalises.
How does rising MWPL increase the probability of stocks like IRCTC or RVNL entering the F&O ban list?
As MWPL inches closer to the 95% threshold, it signals aggressive build-up of derivative positions. Stocks nearing this level face a higher risk of trading restrictions, which can suddenly alter liquidity and short-term price behaviour.
Can stocks in the F&O ban list still be traded intraday or for delivery in the cash market?
Yes, stocks under the F&O ban can still be traded in the cash market. However, the absence of fresh derivative positions often leads to sharper intraday moves due to reduced hedging and speculative activity.
Why do traders closely track MWPL changes even when a stock is not yet in the ban list?
MWPL acts as an early warning indicator. Rising levels suggest increasing leverage and crowding in derivatives, helping traders anticipate possible ban entry and adjust positions before restrictions kick in.
How does entry into the F&O ban list impact option premiums and open interest patterns?
Once a stock enters the ban list, option premiums may contract or behave erratically as no new positions are allowed. Existing positions unwind gradually, often leading to sudden drops in open interest and unpredictable price swings.
What are the risks of holding derivative positions when a stock is close to the MWPL threshold?
If a stock breaches the MWPL limit overnight, traders cannot add or roll positions the next day. This can force abrupt exits, increase slippage, and amplify losses, especially in highly leveraged trades.
Why is the absence of stocks in the ‘possible exit’ list significant for market participants?
When no stocks are nearing MWPL relief, it suggests sustained speculative interest and continued pressure in select counters. This often keeps volatility elevated and limits fresh trading opportunities in the derivatives segment.
