On Friday, Indian equity markets made a fantastic start, with Nifty50 and BSE Sensex being the flags. At 9:16 AM, Nifty50 was at 26,172.90, posting a gain of 26 points (0.10%), while BSE Sensex was at 85,282.91, gaining 94 points (0.11%).

Market professionals consider that the blending of Q3 corporate earnings, the hopes of a Union Budget, and global elements like the quickening of the India-US trade deal and the US Fed’s stance will be the principal drivers of the markets.The market’s main driving force in 2026 will be earnings growth.

Economic Indicators Boost Market Sentiment
Dr. VK Vijayakumar, the principal investment strategist at Geojit Investments, commented, “The economy is evidently gaining strength as shown by the year-on-year increase of 25.8% in December sales of passenger vehicles.” Sustaining this growth is crucial for continued earnings growth, which will help markets remain resilient and gradually climb.”

He added that the consumer durables sector, which lagged last year, has potential to rebound. “The benefits of interest rate cuts and GST reductions have yet to reflect fully in demand, but short-term prospects remain positive,” he noted.

Global Markets & Commodities
Global risk sentiment is positive at the start of the New Year, with US equity futures trading higher, suggesting a strong opening for equities. Hydrocarbons, however, recovered from their recent low, with gold slightly increasing after hitting a two-week low and silver raising past the losses incurred last week. The recent declines were not enough to stop the two metals from marking the highest gains for the year 2025.

Institutional Activity
In the domestic market, FPIs kept reducing their investments by selling shares worth ₹3,268 crore on Wednesday. However, DIIs were on the other side of the trade supporting the market with purchases of ₹1,526 crore in equities.