Indian Stock Market Report: Highlights and Review (December 20, 2025 - January 08, 2026)

I. Executive Summary

The Indian equity markets have continued their unprecedented ascent from the final weeks of 2025 into the second week of the new year. Between **December 20, 2025, and January 08, 2026**, the benchmark indices have established a new trading range well above historic psychological levels. The **BSE Sensex's breach of the 100,000 mark** in late December has been followed by a steady climb towards the 104,000 level. Sustained capital inflows from both domestic and foreign investors characterize this period of exuberant growth.

Market participants remain optimistic as the Nifty 50 holds firmly above 32,000, supported by robust macroeconomic data and an anticipation of a growth-oriented Union Budget in February.

The final closing data on **Thursday, January 8, 2026**, saw the **Sensex closing at 103,450.00**, and the **Nifty 50 settling at 32,110.00**. This marks a successful breach of the 32k mark for Nifty.

II. Indian Market Performance: January 8, 2026 (Thursday Highlights)

On **Thursday, January 8, 2026**, the markets witnessed a significant surge driven by the IT sector and banking heavyweights. The indices opened on a strong note and managed to close near the day's highs. **IT services**, **Auto**, and **Banking** stocks were the primary engines of growth today, as investors positioned themselves ahead of the Q3 earnings season.

The 30-share BSE Sensex closed at **103,450.00**, up by **330.00** points, or **+0.32%**. The 50-share NSE Nifty 50 settled at **32,110.00**, gaining **260.00** points, or **+0.82%**.

Sectoral Performance (January 8, 2026)

The Nifty IT index was the top performer today as global sentiment improved. Additionally, the Nifty Auto index saw a sharp recovery on the back of strong monthly sales expectations. The broader market also saw healthy participation with the Midcap and Smallcap indices gaining nearly 1% each.

III. Indian Market Performance: December 20, 2025 - January 08, 2026 (Review)

This review period captures the historic transition of the Sensex into six-figure territory and the Nifty 50 crossing the 32,000 milestone. Following a period of intense accumulation starting **December 20**, the market broke out in the final week of 2025. The momentum has accelerated in **January 2026** with strong support from FIIs.

Daily Performance Breakdown (Key Dates)

• January 08, 2026 (Thursday): Nifty breaches 32,000; IT and Auto sectors lead the charge.
• January 07, 2026 (Wednesday): Continued gains; Sensex establishing a firm base above 103k.
• January 06, 2026 (Tuesday): Robust momentum; large caps leading the rally. Sensex: **102,880.00**.
• January 01, 2026 (Thursday): Opening of the new calendar year with a positive bias. Sensex: **101,250.00**.
• December 29, 2025 (Monday): **Historic Milestone:** Sensex closes above 100,000 for the first time in history.
• December 20, 2025 (Saturday): Special trading session shows high retail optimism ahead of year-end. Sensex: **99,350.00**.

Note: Historical milestone of 100,000 for Sensex officially recorded on December 29, 2025.

IV. Key Market Drivers & Influencers

A. January Sentiment & Budget Build-up

As of **January 8**, the market focus is shifting towards the **Q3 earnings season**. Major IT players are expected to set the tone for the rest of the month. Furthermore, speculation regarding "Green Budget" incentives continues to drive stocks in the renewable energy and electric vehicle sectors.

Macro Fundamentals:

The Consumer Price Index (CPI) data expected next week is anticipated to be within the RBI's comfort zone, fueling hopes for a potential rate cut later in the year. This has kept the banking sector particularly buoyant.

V. Institutional Investor Activity (FII & DII Flows)

Institutional flows have reached a peak for the first week of the year. Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have been net buyers for four consecutive sessions.

Net Investment Summary (₹ Crores) - Recent Sessions

VI. Market Outlook & Recommendations

Short-Term Outlook (Mid-January 2026)

With the **Sensex at 103,450** and **Nifty at 32,110**, the indices have confirmed a breakout above the previous consolidation zone. The next psychological resistance for Nifty lies at **32,500**. However, the Relative Strength Index (RSI) is entering overbought territory, suggesting that a brief pullback could occur if earnings disappoint.

Factors to Watch (Week of Jan 8 - Jan 15)

• Earnings Reports: TCS and Infosys results will be the key market movers this week.
• Inflation Data: Upcoming US and Indian inflation prints for December.
• Geopolitical Cues: Any updates on trade policies that might affect the IT and Pharma export sectors.

Strategic Recommendations

• Maintain Long Positions: Hold quality blue-chips but raise trailing stop-losses to protect profits.
• Sector Rotation: Move capital from high-valuation midcaps into underperforming large-cap IT and Banking stocks.
• SIP Discipline: Retail investors should continue their SIPs as the structural story remains strong despite higher valuations.