Ravi Singh, Chief Research Officer at Mastertrust, said the overall market outlook remains cautiously optimistic ahead of the Union Budget.
Against a 2.35 per cent drop in the BSE Sensex and 2.04 per cent decline in the NSE Nifty, the BSE Smallcap index has tanked 3.79 per cent in nine sessions into the New Year.
At close, the Sensex dropped 250.48 points, or 0.30 per cent, to settle at 83,627.69. The Nifty declined 57.95 points, or 0.22 per cent, to end at 25,732.30.
On Monday, the Sensex settled 301.93 points, or 0.36% higher, at 83,878.17, while the Nifty gained 106.95 points, or 0.42%, to close at 25,790.25.
SEBI data suggests that, in November 2025, the combined Average Daily Turnover (ADT) in the cash segment stood at Rs 1.13 lakh crore.
Indian stock markets staged a sharp recovery after six straight days of losses, following positive signals on India-US trade relations. Investor sentiment improved as hopes rose for progress in bilateral trade talks and a possible rollback of steep tariffs. The Sensex rebounded nearly 900 points from its day’s low, while the Nifty gained over 300 points. Adding to optimism was India’s likely invitation to join a US-led critical minerals supply chain initiative, aimed at strengthening global supply chains and reducing dependence on China. The developments lifted confidence across Dalal Street.
Indian markets got a strong start as the Sensex and Nifty rallied after fears of extreme US tariffs began to ease. Investors had earlier priced in a worst-case scenario, including massive trade penalties and a potential breakdown in US-India relations. But recent comments from Ambassador Sen helped bring expectations back to more realistic levels. While this doesn’t mean a major trade deal is imminent, it does reduce the risk of a damaging shock. With the Union Budget around the corner, this relief gives the government room to act decisively and reassure markets that India can handle global pressures even without a US agreement. If a deal does come later, it could be an added bonus — or as they say, “sone pe suhaga.”
As India heads into the Union Budget 2026, Dalal Street is watching closely for signals that could shape the next market move. After a volatile year marked by global risks, US tariff worries and slowing domestic consumption, investors are not expecting big giveaways — but they do want stability, fiscal discipline and targeted growth support. With the fiscal deficit already at 62% of the FY26 target, the government’s room to spend is limited. Still, markets are hoping for a capex push in defence, railways and green energy, along with possible incentives for new-age sectors like AI and space. The biggest wild card remains capital gains tax. Even a small tweak here could spark a rally.
Nifty futures on the NSE International Exchange traded 46 points, or 0.16 per cent, up at 25,922, hinting at a positive start for the domestic market on Tuesday.
In this Market Masters episode on Business Today, host Siddharth Zarabi and Aabha Bhakaya speak with Samir Arora of Helios Capital. The discussion opens with positive remarks from US Ambassador Sergio Gore on strong India-US ties, ongoing trade talks, and the PaxSilica initiative, sparking a sharp rally in Sensex and Nifty.Arora views the ambassador’s comments as a welcome pullback from extreme tariff fears, providing breathing room before the Budget. He argues recent FII outflows stem from India-specific uncertainties (tariffs, geopolitical tensions) rather than high valuations, and expects a reversal with any strong trigger - like tariff de-escalation or tax relief on capital gains for foreign investors.**He remains optimistic on consumption shifting toward experiences, new-age disruptors (Zomato, PB Fintech, Policybazaar), and gold as a hedge, while cautious on IT services. Arora sees BFSI recovery underway and highlights domestic inflows’ resilience amid global volatility.
In this episode of "What's Hot" on Business Today, we highlighted the strong start to 2026 for precious metals, with gold reaching a record peak of around $4,563 per ounce globally and silver at $83.5 per ounce. These shiny metals continue their bullish run, driven by geopolitical tensions, central bank buying, and shifts away from the US dollar. Guest expert Abhishek Basumallick from Shree Rama Managers notes ongoing market volatility, with the Nifty dipping below 25,600 amid a 2.5% weekly decline and external shocks like US policy uncertainties and Middle East/Iran risks. He advises caution on silver but sees gold as supported by central banks, suggesting limited additions for portfolio diversification despite recent sharp rallies. The discussion shifts to Q3 earnings: Avenue Supermarts (DMart) delivered strong results with 13.3% revenue growth to ₹18,100 crore and 18% profit rise to ₹855 crore, aided by margin improvement and store additions. However, Basumallick remains skeptical due to quick commerce competition. For IT giants TCS and HCL Tech, expectations include modest growth, with focus on AI deals, client spending, and margins. He prefers mid-tier specialized IT firms over large caps. Overall, amid subdued markets and geopolitical noise, commodities like metals and oil offer opportunities, while earnings and the upcoming Union Budget will shape near-term sentiment.
Iran Crisis Hits Rice Prices: ₹2,000 Crore Of Indian Export Payments At Risk
Union Budget 2026: After Tax Cuts, What Next? Decoding Budget Expectations
Q3 Earnings: Is The Six-Quarter Weakness Finally Ending?
AI Deals, Margins & Growth: Decoding HCLTech And TCS Q3 Results




