*% change figures are relative to the previous session’s close.
**Approximate Nifty Bank figure derived from provisional closing quotes.
Sectoral performance
Top sectoral gainers
Drivers
Healthcare & Pharma
Defensive buying and expectations of strong Q3 earnings pushed Nifty Healthcare and Nifty Pharma indices up about 1.85 %. Sun Pharma and Dr Reddy’s gained as investors sought safety in less rate‑sensitive stocks.
PSU Bank & Metal
PSU banks and metals saw buying interest as hopes of robust credit growth and infrastructure spending continued. ICICI Bank and SBI supported financial indices.
Sectoral laggards
Causes
Oil & Gas
The Nifty Oil & Gas index slid ~1.75 % because heavy‑weight Reliance Industries fell over 4 % after being removed from a major brokerage’s model portfolio and on concerns over Russian crude supply.
Media & Chemicals
Media stocks sold off amid weak advertising outlook; chemicals shares slipped on profit‑taking and uncertain export demand.
FMCG
Stocks like ITC remained under pressure (down ~2 %) on worries about higher cigarette taxes and rich valuations.
Key statistics
Market breadth: declines outnumbered advances across both the large‑cap and broader markets. The Nifty Midcap 100 and Smallcap 100 fell about 0.2 % each.
Put–Call Ratio (PCR): Nifty PCR near 1.01 and Bank Nifty PCR around 1.13 signal balanced positioning with a slightly bullish bias.
Volatility: India VIX remained subdued near 10, reflecting confidence despite geopolitical noise.
FII/DII flows: Foreign Institutional Investors (FIIs) were net sellers (approx. ₹700 cr), while Domestic Institutional Investors (DIIs) bought roughly ₹1,000 cr, cushioning the fall.
Currency: The rupee strengthened modestly to ₹90.11 per US $ amid dollar supply from foreign banks; however, traders expect the USDINR spot to remain above ₹89.90.
Top gainers and losers
Nifty 50 top gainers
Stock
Closing price
Approx. change
Reasons
ICICI Bank
~₹1,375
+2.9 %
Optimism over strong loan growth and easing asset‑quality concerns helped financial stocks.
Sun Pharma
~₹1,300
+2.0 %
Defensive buying in healthcare and expectations of steady Q3 earnings.
Hindustan Unilever
~₹2,550
+1.7 %
FMCG giant benefited from a rebound in consumption names despite sectoral weakness.
State Bank of India (SBI)
~₹745
+1.6 %
PSU banking stocks gained on robust credit‑offtake and stable asset quality.
Tata Consultancy Services (TCS)
~₹3,985
+1.3 %
IT stocks recovered as the US tech rally and a weaker rupee improved sentiment.
Major losers
Stock
Closing price
Approx. change
Factors
Trent
~₹4,050
–8.6 %
The retailer’s Q3 business update disappointed; concerns about rising competition and valuation led to heavy selling.
Reliance Industries
~₹1,508
–4.5 %
Profit‑taking after recent highs, removal from a brokerage’s model portfolio, and uncertainty over Russian crude supplies weighed on the stock.
Kotak Mahindra Bank
~₹1,730
–2.0 %
Weak trading activity and mixed loan growth data triggered profit‑booking.
ITC
~₹437
–2.0 %
The stock continued to correct after a higher GST on cigarettes and investor rotation out of defensive FMCG names.
HDFC Bank
~₹1,690
–1.5 %
The heavyweight remained under pressure after recent under‑performance and caution ahead of Q3 results.
Note: Prices and percentage changes are approximate closing values rounded to the nearest rupee.
What moved the market
Profit‑taking in heavyweights: After hitting record highs, investors booked profits in index majors. Reliance Industries fell sharply as a brokerage removed it from its model portfolio and because of a statement that it may not receive Russian crude cargoes in January. HDFC Bank and Kotak Mahindra Bank also dragged the market amid caution about their upcoming earnings.
Mixed sector rotation: Pharma and PSU bank stocks attracted buying, but oil & gas, chemicals, media and FMCG names faced selling. The decline in energy shares outweighed gains elsewhere.
Global uncertainties: Fears that the United States could impose fresh tariffs on India over its oil purchases and geopolitical tensions involving Venezuela kept investors cautious. Soft crude‑oil prices due to potential supply disruptions and concerns about demand also influenced energy stocks.
Macro cues: The rupee’s modest recovery and expectations of stable domestic inflation supported sentiment, but investors looked ahead to Q3 corporate results and the Union Budget. The market also tracked signals from the US Federal Reserve’s upcoming meeting and economic data.
Global cues
US markets: Overnight, the Dow Jones Industrial Average rose about 1.23 %, the S&P 500 gained 0.64 % and the Nasdaq Composite advanced 0.69 % as investors digested solid economic data and easing inflationary pressures.
Europe:Euro Stoxx 50 futures were slightly higher (~0.2 %) after reaching record highs as investors eyed corporate earnings.
Asia: Asian markets were mixed; Japan’s Topix advanced roughly 1.4 % on tech strength, while Australian markets slipped about 0.5 % on profit‑taking. Hang Seng and Shanghai Composite both gained over 1 % amid policy optimism.
Commodities: Crude oil prices remained range‑bound despite US–Venezuela tensions, as traders weighed supply risks against demand concerns.
Stocks to watch
Stock
Why it matters
Kotak Mahindra Bank
The lender’s provisional Q3 update showed net advances grew 16 % YoY to ₹4.80 lakh cr. Watch for its detailed quarterly results and commentary on deposit growth.
Axis Bank
Gross advances grew 14.1 % YoY to ₹11.71 lakh cr with deposits up 15 %. Investors will track NIM trends and management guidance.
ONGC
A gas leak occurred at its Mori field in Andhra Pradesh during workover operations. The company said the well is remote and secured; any update on production impact could affect the stock.
Trent
After a steep fall following its 17 % YoY revenue growth update and rapid store expansion to 854 Zudio outlets, the stock may see volatility; investors will watch management commentary on margins.
L&T Finance
Retail disbursements in Q3 grew 49 % YoY to ₹22,690 cr, with the retail loan book up 21 %. The market will focus on asset quality and growth sustainability.
Bajaj Auto
The stock hit a 52‑week high after a brokerage upgrade and strong December sales. Sustained momentum will depend on export recovery and margin outlook.
Reliance Industries
News about crude supplies, potential tariff impacts and de‑allocation from broker portfolios triggered a sell‑off. Further clarity on its energy business and retail/telecom performance is awaited.
HDFC Bank & ITC
Both heavyweights declined. Investors will watch for any improvement in deposit/loan metrics and margin outlooks in their upcoming results, as well as potential recovery in ITC after tax‑related corrections.
Corporate updates
Kotak Mahindra Bank: Net advances for Q3FY26 rose 16 % YoY to ₹4.80 lakh cr. The bank’s average net advances stood at ₹4.66 lakh cr (up 16.2 % YoY), while deposits were healthy; results due later this month will provide further clarity.
Axis Bank: The private lender reported 14.1 % YoY growth in gross advances to ₹11.71 lakh cr and 15 % YoY growth in deposits to ₹12.61 lakh cr. CASA deposits increased 13.9 % to ₹4.93 lakh cr.
ONGC: A gas leak occurred at the Mori field in the Krishna–Godavari basin during a workover, but the firm said the well is in a remote area and secured. Safety measures are being monitored.
Trent Ltd: Retail revenue for Q3FY26 grew 17 % YoY to about ₹5,220 cr. Its store network expanded rapidly to 854 Zudio outlets and plans remain intact despite the recent stock sell‑off.
L&T Finance: Retail disbursements surged 49 % YoY to ₹22,690 cr; the retail loan book increased 21 %. The company continues its focus on rural and housing loans.
Other industry data: Auto retail sales rose 7.71 % YoY in December as per FADA, reflecting strong rural demand. Reliance indicated it does not expect any Russian crude deliveries in January due to geopolitical factors.
Technical view and outlook for 7 January 2026
Technical levels
Index
Support
Strong support/buy zone
Resistance
Higher/target zone
Nifty 50
26,125 – 26,215
25,975 – 26,100 (aggressive buying zone)
26,300 – 26,375
Above 26,400: targets at 26,500 – 26,600
Nifty Bank
59,700 – 59,875
59,450 – 59,575
60,200 – 60,425
Above 60,500: targets at 60,700 – 61,000
These levels are derived from market strategists’ analysis. The Nifty formed a Doji pattern on the daily chart on 6 Jan 2026, indicating indecision. The 20‑day and 21‑day moving averages around 26,020 are key support areas. A decisive break below 26,000 could open room toward 25,900–25,800. Conversely, staying above 26,200 may trigger a pull‑back toward 26,300–26,400.*
Expected market tone for the next trading day (7 Jan 2026)
The market is likely to open on a cautious but slightly positive note. Technical indicators remain neutral‑to‑bullish; the momentum oscillators still point upward and volatility is low, suggesting dips may be bought. However, the following factors could drive intraday moves:
Global triggers: Investors will watch overnight US data releases, including services PMI and any comments from Federal Reserve officials. Geopolitical developments around Venezuela and oil tariffs will continue to influence energy stocks.
Earnings season: With Q3 results around the corner, stock‑specific reactions may drive indices. Watch for updates from major banks and IT companies.
Oil prices and rupee: Crude price movement and currency strength could affect sectors such as oil & gas, chemicals and exporters.
Overall, expect consolidation with a positive bias as long as Nifty holds above the 26,000 mark. Traders may focus on defensive sectors and look for selective buying in banking, capital goods and IT, while remaining cautious on richly valued consumer and energy stocks.
