Nifty and Sensex performance breakdown for 02 Jan 2026- Market breaked all time high

Indian markets delivered a strong, broad-based rally on Friday, 02 January 2026, with both Nifty and Sensex hitting fresh record levels, led by PSU commodities, power and financials, even as FMCG came under heavy profit‑booking. Market breadth and midcap action confirmed a risk‑on tone heading into the first full trading week of 2026.

Index summary and breadth

Sensex: Closed at 85,762.01, up about 0.67% (≈+573–584 points), marking a new all‑time high and extending its 1‑month and 1‑year gains to roughly 0.8% and 8% respectively.
Nifty 50: Ended at 26,327.75–26,328.55, up ~0.70% (≈+181–182 points), also at a record close.
Bank Nifty: Finished at 60,150.95, up 0.74%, signalling leadership from financials.
Nifty IT: Closed at 38,320.30, up 0.39%, participating modestly in the rally.
Nifty Midcap 100: Gained 1.01% (≈+615 points) to 61,366, with 73 stocks advancing and only 26 declining, highlighting strong midcap breadth.

On the BSE, the advance–decline ratio stood near 1.14, reflecting a second consecutive session where advancing shares outnumbered decliners and reinforcing the stock‑specific opportunity environment.

Top Nifty 50 gainers and losers

Top gainers (Nifty 50, 02 Jan 2026)

Coal India:
- Up 7.15% to ₹429, the top gainer in Nifty 50.
- Rally driven by the company allowing direct participation of foreign coal buyers in e‑auction, improving volume and pricing visibility.
NTPC:
- Up 4.56% to ₹351.65, reflecting strong sentiment for PSU power names amid expectations of new collaborations and capacity expansion.
Hindalco:
- Gained 3.53%, supported by positive cues in global metal prices and hopes of robust aluminium demand.
Trent:
- Rose 2.39%, benefitting from resilient consumption and strong store expansion narratives in organised retail.
State Bank of India (SBI):
- Up 2.12%, riding on continued optimism about credit growth, asset quality and PSU bank re‑rating.

These moves show a clear tilt towards PSU/commodities (Coal India, NTPC, Hindalco) and quality financials/retail (SBI, Trent) as leading risk‑on plays.

Top losers (Nifty 50, 02 Jan 2026)

ITC:
- Fell 3.78–3.79% to about ₹350–₹350.05, the steepest decline in the index.
- Pressure came after the government imposed additional excise duty on cigarettes and tobacco products effective 1 February under a revised tax structure that hits premium, longer cigarettes the most.
Nestlé India:
- Down 1.13–1.25% to around ₹1,278.80, hit by sector‑wide FMCG selling.
Kotak Mahindra Bank:
- Dropped 1.26–1.35%, underperforming within the otherwise strong banking space.
Shriram Finance:
- Declined 0.94%, reflecting selective profit‑booking in NBFCs after a robust prior run.
Bajaj Auto and Axis Bank:
- Both saw mild cuts (Bajaj Auto about −0.62%), pointing to rotation within autos and banks rather than a sector‑wide risk‑off move.

Overall, FMCG was the most notable pocket of weakness, driven primarily by regulatory headlines and valuation concerns.

Sector-wise performance snapshot

Banking & Financials (Nifty Bank)
- Best‑performing major sector, up 0.74%, with SBI and other large lenders leading.
- Reflects confidence in credit growth and improved balance sheets; PSU banks outperformed some private names like Kotak.
Power & Utilities
- NTPC and other utilities gained strongly; NTPC’s 4.56% surge shows investors favouring stable cash flows and energy transition-linked stories.
Metals & Commodities
- Coal India and Hindalco’s sharp rise highlights strong interest in commodity and resource plays amid favourable policy and global price trends.
Midcaps
- Torrent Power: Top gainer in Nifty Midcap 100, jumping 5.55% to ₹1,400.60.
- IREDA, NHPC, Dabur, NALCO: Also posted notable midcap gains (5.2–5.47% and 4.75–5.09%), with energy and PSU names prominent.
Autos & FMCG
- Auto Index was up about 1%, making it a star sector by index gain, though stock‑specific losers like Bajaj Auto saw mild profit‑taking.
- FMCG Index fell over 3%, led by ITC’s slump and declines in Nestlé India and Tata Consumer Products, showing sharp sector rotation away from defensives.
IT
- Nifty IT edged up 0.39%, reflecting stable global tech cues and selective buying in quality IT names rather than a broad breakout.

Volume and market internals

High‑volume losers:
- ITC traded with very high volumes (~888.96 lakh shares), confirming strong institutional and retail reaction to the excise duty news.
Broad market:
- Nifty Midcap 100 breadth was strongly positive (73 up vs 26 down), underscoring risk appetite beyond largecaps.
- BSE’s advance–decline ratio at ~1.14 showed more stocks rising than falling for the second consecutive session, a healthy sign for early‑January trade.

This volume pattern suggests that the day’s rally was not narrow; it was supported by meaningful participation across indices and capitalisation buckets, with key losers largely driven by news‑specific factors rather than system‑wide derisking.

What this Nifty & Sensex breakdown implies

Trend: The uptrend remains intact, with both indices at record closes and sector rotation favouring cyclicals, PSUs, power, metals and financials over FMCG defensives.
Risk‑on tone: Strong midcap action and leadership from Coal India, NTPC, Hindalco, SBI and Torrent Power reflect a constructive risk environment.
Stock‑specific risk: The sharp sell‑off in ITC and pressure in Nestlé and other FMCG names highlight how regulatory and policy changes can quickly impact high‑valuation defensives.

For traders and investors using 02 January 2026 as the latest reference (since 03 January is a holiday), this sector‑wise and stock‑wise breakdown shows that dips in quality cyclicals and leaders remain buyable, while FMCG and certain premium names may need fresh valuation and policy risk reassessment before adding exposure.