The Indian stock market commenced the second day of the year on a firm note, with benchmark indices showing resilient growth. As of Jan 2, 2026, at 9:23 AM IST, the NIFTY 50 index was trading at ₹26,195.95, marking a steady gain of 49.40 points or 0.19% for the day. Simultaneously, as of 9:24 AM IST, the BSE SENSEX is trading at 85,360.59, reflecting a positive move of 171.99 points or 0.20%. This early momentum is primarily driven by a robust performance in the auto stocks, where industry giants Maruti Suzuki, M&M and Hero MotoCorp are spearheading the rally.
Automotive Sector Drives Market Sentiment
The automobile industry has emerged as the primary engine of growth in early trade, with investor sentiment lifted by strong December sales numbers and healthy year-on-year growth across the sector. Reflecting this momentum, the Nifty Auto index was trading at 28,737.75 as of 10:27 AM on Jan 2, up 257.20 points or 0.90 percent, underscoring broad-based buying interest in auto stocks.
- Maruti Suzuki: Leading the pack of gainers, Maruti Suzuki opened at ₹16,750.00 and climbed to a high of ₹16,974.00. At 9:20 AM IST, its Last Traded Price (LTP) stood at ₹16,931.00, representing a significant 1.33% increase.
- Mahindra & Mahindra (M&M): Following closely, M&M reached its high of ₹3,798.80, securing a 1.01% gain.
- Hero MotoCorp: The two-wheeler giant reported a massive 40% spike in total sales for December, moving 4.56 lakh units compared to 3.24 lakh units in the previous year. As of Jan 2, 2026, at 9:54 AM IST, Hero MotoCorp Ltd is trading at ₹6,013.00 on the NSE, surging by ₹171.50 (2.94%).
- TVS Motor Company: Reported an even more impressive 50% jump in total sales, with Electric Vehicle (EV) sales growing by 77% to reach 35,605 units. As of Jan 2, 2026, at 9:55 AM IST, TVS Motor Company Ltd was trading on the NSE at ₹3,877.40, surging by ₹83.00 (2.19%).
(Source: NSE, Moneycontrol)
Top Nifty Gainers at 9:20 AM IST
| Stock Name | Open (₹) | High (₹) | LTP (₹) | Change |
|---|---|---|---|---|
| Maruti Suzuki | 16,750.00 | 16,974.00 | 16,931.00 | +1.33% |
| Mahindra & Mahindra | 3,759.90 | 3,798.80 | 3,798.80 | +1.01% |
| Hindalco | 898.00 | 904.95 | 903.45 | +0.95% |
| Tata Motors Passenger Vehicles | 369.20 | 372.90 | 370.85 | +0.90% |
| Bharat Electronics | 399.65 | 402.20 | 401.25 | +0.89% |
(Source: NSE)
Macroeconomic Catalysts and Global Cues
Several domestic and international factors are providing a supportive backdrop for the current market rally.
- Robust GST Collections: India’s economic foundations remain strong, as evidenced by the December GST collections. The total collection reached ₹1.74 lakh crore, reflecting a 6.1% year-on-year growth. This represents the fastest expansion seen in the last three months, boosting investor confidence in domestic consumption.
- Monetary Policy Expectations: Market participants are hopeful for another quarter-point rate cut from both the Federal Reserve and the Reserve Bank of India (RBI). Such a move would provide necessary liquidity and cushion any potential downsides, keeping the bullish sentiment alive.
- Currency and Commodities: The Indian Rupee opened marginally higher at ₹89.93 per dollar on Friday, improving slightly from Thursday’s close of ₹89.96. Meanwhile, global oil prices have steadied. Brent crude ended below $61, while West Texas Intermediate remained above $57 a barrel. Traders are currently focused on the upcoming OPEC+ video conference scheduled for January 4, where leaders are expected to maintain current supply levels.
(Source: The Hindu, CNBC TV-18)
Corporate News and Deals
The market is also seeing key corporate restructuring developments. A major highlight is the proposed merger between Devyani International and Sapphire Foods. Under the scheme, Devyani International will issue 177 shares for every 100 shares held in Sapphire Foods. Reacting to this, Devyani International was quoting at ₹158.20, up by 6.93% at 9:19 AM IST.
In the toy manufacturing sector, KV Toys India saw significant interest from institutional investors. The Royal Alpha Opportunity Fund purchased 42,000 shares at ₹332.57 per share, while the Vorton Opportunities Fund acquired 33,600 shares at ₹327.03 per share.
(Source: Moneycontrol)
Banking Sector: Q3 Updates in Focus
Investors are closely monitoring the third-quarter business updates from key banking institutions.
- Indian Bank: Reported a total business jump of 13.4% to ₹14.30 lakh crore. Gross advances increased by 14.5%, reaching ₹6.40 lakh crore.
- South Indian Bank: Witnessed a 12.17% zoom in total deposits to ₹1.18 lakh crore. Notably, the CASA ratio improved to 31.84%.
- Punjab & Sind Bank: Total business grew by 11.84% to ₹2.49 lakh crore, with gross advances soaring by 15.25%.
(Source: CNBC TV-18)
Stocks in News Today
Several companies are expected to remain in the spotlight due to fresh orders and operational milestones:
- RailTel Corporation of India: Secured a ₹56.71 crore order for implementing a Hospital Management Information System in Assam.
- Aurobindo Pharma: Its subsidiary has approved a ₹325 crore acquisition of Khandelwal Laboratories’ non-oncology business.
- Olectra Greentech: Announced the commencement of commercial operations at its new Hyderabad EV facility, capable of producing 2,500 buses annually in its first phase.
- Time Technoplast: Received critical approvals from Petroleum and Explosives Safety Organization (PESO) for manufacturing high-pressure composite cylinders.
(Source: Moneycontrol)
The Bottomline
The positive start on Jan 2, 2026, suggests a strong underlying appetite for equities, particularly in the auto stocks and manufacturing sector. With the NIFTY 50 holding above the 26,190 level and the Sensex gaining ground, the focus now shifts to the sustainability of these gains as more Q3 earnings results trickle in.
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