Weekly Summary: Nifty Reaches Record Highs, Highlights Trends and Stock Changes

The first week of 2026 saw an impressive start for the markets, with the Nifty 50 setting a new record high. This surge marked a significant milestone for the Nifty, reflecting a remarkable 1% increase and the most substantial weekly gain in two months. In addition to the Nifty 50’s success, the Nifty Bank and Mid-Cap indices also reached new peak levels.

This notable rally in the market was primarily attributed to robust auto sales performance and positive earnings projections. Interestingly, geopolitical tensions and ongoing FII selling seemed to take a back seat, allowing the market’s positive momentum to take the spotlight. Furthermore, the week was marked by some key events and stories that captured market participants’ attention.

In a remarkable development, India surpassed Japan to claim the title of the world’s fourth-largest economy by nominal GDP, showcasing the country’s economic prowess on the global stage. Meanwhile, insights revealed in the December FOMC minutes hinted at potential rate cuts in the US, indicating a cautious stance awaiting economic data to guide future policy decisions.

Flash PMIs for the G4 economies, including the US, Eurozone, Japan, and the UK, reflected sustained economic expansion for the eighth consecutive month in December. This steady growth trajectory across major global economies bodes well for overall market sentiment and economic health.

Amidst this backdrop, some notable stocks made significant moves during the week. NTPC emerged as a top gainer, climbing nearly 9% following an endorsement by Jefferies as their top pick in the power sector. The outlook for sector rebound further fueled investor confidence in NTPC’s growth potential. Similarly, Tata Steel witnessed an 8% increase after the government’s announcement of safeguard duties on select steel imports, providing a protective shield for domestic producers against international competition.

Conversely, the FMCG sector faced headwinds during the week, with a 3.7% decline led by heavyweight stocks like ITC. This decline was exacerbated by the government’s imposition of new excise duties on cigarettes, prompting concerns among investors and leading to downgrades by several brokerages citing potential earnings impact.

On a global scale, positive news emerged from China’s manufacturing sector, with a rebound in the PMI to 50.1, signaling expansion after eight months of contraction. Meanwhile, back in India, December 2025 witnessed a 6.1% year-on-year increase in GST collections, despite a reduction in GST rates reflecting continued economic resilience.

Looking ahead, technical indicators suggest further upside potential for the market, with the Nifty expected to maintain a bullish trend. While geopolitical tensions may introduce initial volatility, the overall positive market sentiment and sound economic indicators are likely to support continued market growth in the upcoming week.