Indian Stock Market Report: Highlights and Review (December 24, 2025 - January 12, 2026)

I. Executive Summary

The Indian equity markets have started the second week of 2026 with renewed vigor. Between **December 24, 2025, and January 12, 2026**, the indices have solidified their positions well above historic psychological barriers. Following the momentous crossing of the **Sensex 100,000 mark** in late December, the market has entered a phase of healthy consolidation and sector rotation, with heavy institutional inflows supporting the upward trajectory as the Q3 earnings season kicks into high gear.

As of mid-January, the Nifty 50 has established a firm base above the 32,300 level, buoyed by strong domestic macro indicators and anticipation of the upcoming Union Budget.

The final closing data on **Monday, January 12, 2026**, saw the **Sensex closing at 104,150.00**, and the **Nifty 50 settling at 32,385.00**. This marks a record-breaking start to the trading week.

II. Indian Market Performance: January 12, 2026 (Monday Highlights)

On **Monday, January 12, 2026**, the Indian benchmarks opened the week with a gap-up, driven by positive global cues and robust FII activity. The session saw significant outperformance in **IT**, **Energy**, and **Auto** sectors. While the mid-session saw some consolidation, a final hour surge in heavyweights like Reliance and TCS pushed the indices to fresh lifetime closing highs.

The 30-share BSE Sensex closed at **104,150.00**, up by **330.00** points, or **+0.32%**. The 50-share NSE Nifty 50 settled at **32,385.00**, gaining **140.00** points, or **+0.43%**.

Sectoral Performance (January 12, 2026)

The Nifty IT index was the primary driver today, gaining 1.5% as investors anticipated strong guidance from frontline tech firms. The Energy sector followed closely, supported by stable global crude prices. Mid-cap and Small-cap indices continued to witness stock-specific action, though they slightly lagged the front-line benchmarks in percentage gains.

III. Indian Market Performance: December 24, 2025 - January 12, 2026 (Review)

The past three weeks have been historic for Indian investors. From the pre-Christmas rally on **December 24**, the market moved decisively to conquer the **100,000 Sensex milestone** on December 29. Since the start of the New Year, the market has defied "overbought" concerns, gaining an additional 3% as liquidity from both FIIs and DIIs reached record levels for a single fortnight.

Daily Performance Breakdown (Key Dates)

• January 12, 2026 (Monday): Market hits fresh record highs; IT and Energy lead the surge.
• January 09, 2026 (Friday): Strong weekly close above 103,800; Banking sector stabilizes.
• January 05, 2026 (Monday): First Monday of the year sees aggressive FII buying; Sensex breaches 102,500.
• January 01, 2026 (Thursday): Markets welcome the New Year with a positive close, led by Auto and FMCG.
• December 29, 2025 (Monday): **Historical Milestone:** Sensex closes above 100,000 for the first time in history.
• December 24, 2025 (Wednesday): Pre-Christmas accumulation; Nifty nears the 31,000 mark.

Note: Market remained closed on weekends and public holidays.

IV. Key Market Drivers & Influencers

A. Q3 Earnings Season Entry

The market has officially entered the **Q3 Earnings season**. Sentiment is high as the first set of numbers from top-tier firms suggests that margin pressures are easing. The "earning-led rally" is expected to replace the "liquidity-led rally" as the primary driver for the rest of January.

Global Macro Trends:

A stable US Treasury yield and the recent strengthening of the Indian Rupee against the Dollar have created a favorable environment for emerging market allocation. FIIs have shown a net positive bias for 10 out of the last 12 trading sessions.

V. Institutional Investor Activity (FII & DII Flows)

Institutional activity in the first fortnight of 2026 has been exceptional. FIIs have shown a preference for large-cap banking and tech, while DIIs have provided a strong floor through consistent SIP-led inflows.

Net Investment Summary (₹ Crores) - Recent Sessions

VI. Market Outlook & Recommendations

Short-Term Outlook (Week of Jan 12 - Jan 16)

The immediate technical target for the **Sensex is now 105,000**, with **Nifty eyeing 32,600**. While the primary trend is bullish, the RSI (Relative Strength Index) on daily charts suggests the market is in the 'overbought' zone. A brief consolidation or a minor dip towards 103,200 (Sensex) would be considered healthy.

Factors to Watch (This Week)

• WPI & CPI Inflation: Domestic inflation data will be critical for determining the RBI’s next move in the February policy.
• Global Central Bank Commentary: Any signals regarding interest rate cuts in the US or Europe will impact FII flows.
• Budget Preparations: News regarding infrastructure outlays or tax reforms will drive sectoral volatility.

Strategic Recommendations

• Selective Buying: Shift focus from broad-market ETFs to stock-specific opportunities based on earnings quality.
• Hedge Positions: Long-term investors may consider adding defensive plays like Pharma or Gold as the indices reach record valuations.
• Capital Preservation: Avoid excessive leverage at these levels; maintain adequate cash for potential "buy-on-dip" opportunities.