BSE Sensex ended at 85,762.01, up 573.41 points (+0.67%)
NSE Nifty50 finished at 26,328.55, up 182 points (+0.7%)
The broader markets outperformed once again.
Nifty Midcap 100 rose 1.01%
Nifty Smallcap 100 advanced 0.72%
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Impact on the stock market
Sector-wise performance
- Nifty Auto, Nifty Metal, Nifty PSU Bank, Nifty Realty and Nifty Consumer Durables indices all gained more than 1% each
- These gains point to optimism around economic activity, infrastructure spending and domestic consumption
- However, Nifty FMCG was the clear laggard, falling 1.19%. Weakness in heavyweights like ITC weighed on the sector, despite the broader market’s bullish tone.
| Sector/Index | Performance |
| IT & BPM sector | 0.39% |
| Healthcare sector | 0.78% |
| Oil & Gas sector | 0.88% |
| Real estate sector | 1.52% |
| PSU Bank in India | 1.50% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Coal India | 427.90 | 6.85 |
| NTPC | 352.10 | 4.70 |
| Hindalco | 925.70 | 3.44 |
| Trent | 4,409.60 | 2.61 |
| Jio Financial | 301.70 | 2.03 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| ITC | 350.05 | -3.22 |
| Nestle | 1,279.70 | -1.82 |
| Kotak Mahindra | 2,195.10 | -1.58 |
| Shriram Finance | 1,010.35 | -1.32 |
| Axis Bank | 1,266.90 | -0.81 |
Market aftermath: Impact on stocks
ITC: Insurers feel the heat as cigarette tax bites
Shares of ITC continued to face heavy selling pressure after the government announced a higher excise duty on cigarettes. The stock has fallen over 14% in just two trading days in 2026 and hit a fresh 52-week low of ₹345.25 before recovering slightly.
This sharp correction has had a direct impact on large institutional shareholders. Life Insurance Corporation of India (LIC), which holds a 15.86% stake in ITC, has seen a notional loss of around ₹11,468 crore. At current levels, LIC’s stake value has dropped to ₹68,560 crore, from ₹80,028 crore at the end of December.
Other state-run insurers were also hit:
- General Insurance Corporation of India incurred a notional loss of ₹1,254 crore
- New India Assurance saw a notional loss of ₹1,018 crore
In total, nearly ₹13,740 crore was wiped out from the combined portfolios of these three insurers in just two days. ITC’s market capitalisation has fallen by ₹72,000 crore, now standing at ₹4.38 lakh crore, with the stock trading at a P/E of 22.59.
While these losses are not realised unless shares are sold, the episode highlights how policy changes can quickly alter the outlook for even the most stable stocks.
Metal stocks: Sector hits record highs on global cues
Metal stocks continued their winning streak, with the Nifty Metal Index hitting a record high of 11,433.80. The index has risen for the fourth consecutive session and gained over 5% in the last four trading days.
Heavyweights led the rally:
- National Aluminium Company (NALCO) surged nearly 5% to ₹329.55
- Hindustan Copper rose 3.7%
- Hindalco Industries gained 3.5%
- Vedanta, Hindustan Zinc, Jindal Steel and NMDC added up to 2.5%
Three key factors are driving this momentum:
- Weak US dollar: The dollar index fell 9.4% in 2025, its biggest decline in eight years, making metals cheaper for global buyers
- China’s recovery signals: China’s manufacturing activity returned to expansion in December, with its PMI rising to 50.1, boosting demand expectations
- Rising global prices: Aluminium prices touched $3,000 per tonne on the London Metal Exchange for the first time since 2022
For metal producers, higher prices directly support margins and earnings visibility, explaining the sustained buying interest.
Cupid: High-flyer hits speed breaker under surveillance
Shares of Cupid Ltd hit a 20% lower circuit after being placed under the Long-term Additional Surveillance Measure (ASM) Stage 1 framework.
The stock, which had surged a massive 550% over the past year, saw its 13-day winning streak come to an abrupt halt. Under ASM Stage 1, the stock will attract 100% margin requirements from January 6, significantly curbing speculative activity.
At around ₹420, Cupid has corrected sharply from recent highs amid heavy volumes. On Friday alone, 22 million shares changed hands — nearly six times the previous day’s volume.
Analysts believe the move was overdue. After such a sharp rally driven by earnings growth, global expansion and reduced promoter pledging (down from 36.13% to 20%), profit-booking was inevitable. Technical experts see ₹370 as a crucial support level, with resistance near ₹445.
For retail investors, the episode serves as a reminder that momentum stocks can turn volatile very quickly.
Crude oil: Reliance resumes Russian oil purchases cautiously
Energy markets are also seeing strategic shifts. At least three tankers carrying nearly 2.2 million barrels of Russian crude are heading to Reliance Industries Ltd’s Jamnagar refinery complex.
Reliance had briefly paused Russian oil purchases after the US sanctioned Rosneft and Lukoil in October. However, it has now resumed modest buying through non-sanctioned traders. Russian crude now accounts for under 20% of Reliance’s total imports, down from over 40% earlier in the year.
India’s refiners, including Indian Oil Corporation and Bharat Petroleum, are also selectively buying discounted Russian barrels amid thin refining margins and uncertainty around US trade negotiations.
This cautious re-entry highlights how geopolitical pressure is reshaping India’s energy sourcing strategy, with refiners balancing cost advantages against regulatory risks.
Conclusion:
Friday’s rally reinforced the bullish undertone in Indian equities, with Sensex and Nifty closing near record levels and broader markets participating meaningfully. Strong gains in metals, autos and PSU banks suggest confidence in economic momentum.
At the same time, sharp moves in stocks like ITC and Cupid underline the importance of staying alert to policy changes and valuation risks. The market is rewarding growth and global tailwinds, but it is also quick to punish uncertainty.For more stock market insights, check out the StockGro blog.
