Stock Market Today: Why are BSE Sensex and Nifty 50 rising? Check reasons behind rally

Indian equities opened modestly higher on Friday, January 2, 2026, the second trading day of the year, as investors positioned for a flurry of corporate updates ahead of the quarterly earnings season. Early gains in banking and automobile stocks supported the broader market, while investors also tracked developments in commodities and metals.

At 12:20 pm, the BSE Sensex was trading at 85,631.60, up 443 points or 0.52 per cent, from the previous close of 85,188.60. The index opened at 85,259.36, touched a high of 85,658.35 and a low of 85,068.88. On the NSE, the Nifty 50 index rose 140.95 points or 0.54 per cent to 26,287.50.

Bank Nifty Today

Banking stocks led the gains as the Nifty Bank index surged to a fresh record of 60,118.10 during intraday trade, surpassing its previous high of 60,114 set on December 1, 2025.

At the time of reporting, the index was trading at 60,080.25, up 368.70 points or 0.62 per cent. Strong buying interest in heavyweight banking stocks, including HDFC Bank, ICICI Bank, and Kotak Mahindra, contributed to the rally.

Also Read: Nifty Bank tops 60,114 to new high, hits finish line before Nifty50 in New Year 2026

Nifty Auto Touched New High

The automobile sector also supported the market rise. The Nifty Auto index rose for the fourth consecutive session, gaining nearly 1 per cent to 28,732.65, and touched a new intraday high of 28,808.40.

Gains were led by Mahindra & Mahindra and Maruti Suzuki, following strong December sales data. Passenger vehicle sales reached a record 45.5 lakh units in 2025, up nearly 6 per cent from the previous year. Rising disposable incomes, GST benefits, demand for second vehicles, and personalised options drove the growth.

Market leader Maruti Suzuki reported a 22 per cent increase in sales. Mahindra & Mahindra and Tata Motors Passenger Vehicles overtook Hyundai Motor India in market share, reflecting a shift in the sector’s competitive landscape.

Also Read: Nifty Auto index hits fresh peak as M&M, Maruti lead gains

Metals Price Rally

Precious metals resumed their rally after a strong performance in 2025. Spot gold climbed 1.5 per cent to $4,378.75 per ounce, while US gold futures for February delivery rose 1.2 per cent to $4,392.20 per ounce.

Platinum increased 2.5 per cent to $2,105.48 per ounce, and palladium gained 2.1 per cent to $1,639.12 per ounce. Geopolitical tensions and hopes of lower interest rates this year kept safe-haven demand intact.

Nifty Sectoral Indicies

IT stocks were largely steady, with gains in heavyweights cushioning sectoral losses. The Nifty IT index rose 0.35 per cent, while ITC shares continued to decline after the government imposed additional excise duty on cigarettes, reflecting sector-specific pressures.

Sectoral indices largely traded higher. Nifty FMCG was down 1.14 per cent, while Nifty Bank, Nifty Auto, Nifty Financial Services, Nifty Realty, and Nifty Metals posted gains ranging from 0.7 to 1.2 per cent. Midcap and smallcap indices also rose between 0.6 and 0.9 per cent, indicating broad-based participation.