The Indian equity market ended the week with strong gains, with the Nifty 50 crossing the 26,300 level to hit a fresh record high, while the Sensex also posted solid gains. Market sentiment was supported by strong Q3 corporate business updates and robust December auto sales. Macro data such as a sharp rebound in IIP growth and steady GST collections further lifted confidence. Broader markets outperformed, led by buying in auto and cyclical stocks.
In the week ended on Friday, 02 January 2025, the S&P BSE Sensex rallied 720.56 points or 0.84% to settle at 85,762.01. The Nifty 50 index soared 286.25 points or 1.09% to settle at 26,328.55. The BSE Mid-Cap index rose 0.97% to close at 47,539.18. The BSE Small-Cap added 0.79% to end at 51,920.13.
Weekly Index Movement:
The key equity barometers ended with modest losses on Monday. The S&P BSE Sensex declined 345.91 points or 0.41% to 84,695.54. The Nifty 50 index lost 100.20 points or 0.38% to 25,942.10.
The key equity barometers ended marginally lower on Tuesday. The S&P BSE Sensex declined 20.46 points or 0.02% to 84,675.08. The Nifty 50 index lost 3.25 points or 0.01% to 25,938.85.
The key equity barometers ended with substantial gains on Wednesday. The S&P BSE Sensex advanced 545.52 points or 0.64% to 85,220.60. The Nifty 50 index gained 190.75 points or 0.74% to 26,129.60.
The key equity barometers ended near the flat line on Thursday. The S&P BSE Sensex declined 32 points or 0.04% to 85,188.60. The Nifty 50 index gained 16.95 points or 0.06% to 26,146.55.
The key equity indices ended with substantial gains on Friday. The S&P BSE Sensex advanced 573.41 points or 0.67% to 85,762.01. The Nifty 50 index climbed 182 points or 0.70% to 26,328.55.
Economy:
India’s Index of Industrial Production (IIP) grew 6.7% year-on-year in November, accelerating from the upwardly revised 0.5% increase in the previous month. Growth was noted in manufacturing (8% vs 2% in October) on higher output of basic and fabricated metal products, pharmaceuticals, and motor vehicles. Growth was also sharp for mining (5.4% vs -1.8%) as the closure of the monsoon season supported operations.
GST revenues in December showed a modest pickup, with gross collections rising to Rs 1.74 lakh crore, up 6.1% year on year and marking the fastest growth in three months after a softer November. However, the improvement was driven largely by imports, with GST from imports jumping nearly 20%, while domestic collections grew only 1.2%. After adjusting for refunds, net GST revenue stood at Rs 1.46 lakh crore, reflecting a muted 2.2% increase. Major industrial states such as Maharashtra, Gujarat, Karnataka and Tamil Nadu remained the biggest contributors, and overall trends suggest the economy continues to expand steadily, supported by import demand and gradual formalization.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a single-figure indicator of sector performance – fell from 56.6 in November to 55.0 in December, signalling the weakest improvement in the health of the sector in two years. Amid a general lack of pressure on operating capacities, there was only a marginal increase in factory employment during December.
Monthly Auto Sales:
Mahindra & Mahindra (M&M) rose 4.98%. The company reported 25% increase in total auto sales for December 2025, selling 86,090 vehicles during the period under review as against 68,814 vehicles sold in December 2024.
Ashok Leyland rallied 8.27%. The company reported a 27% increase in total commercial vehicle sales to 21,533 units in December 2025, up from 16,957 units sold in December 2024.
Maruti Suzuki India rose 2.23%. The company reported total sales of 2,17,854 units in December 2025, marking a 22.21% increase compared to 1,78,248 units sold in the same month last year.
Eicher Motors added 0.09%. The company’s unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 24.7% year-on-year jump in commercial vehicle (CV) sales to 10,384 units in December 2025.
Steel Strips Wheels (SSWL) surged 10.90%. The company reported a net turnover of Rs 446.59 crore for December 2025, marking a 22.44% year-on-year (YoY) increase compared to Rs 364.74 crore recorded in December 2024.
Escorts Kubota gained 4.18%. The company’s agri-machinery business division sold 7,577 tractors in December 2025, registering a growth of 38.5% compared with 5,472 tractors sold in December 2024.
TVS Motor Company advanced 7.28%. The company registered sales of 481,389 units in December 2025, which is 50% higher as compared with the 321,687 units sold in December 2024.
Maruti Suzuki India rose 2.23%. The company’s total production rose 34.43% to 211,939 units in December 2025 as against 157,654 units recorded in December 2024.
Hero MotoCorp added 5.23%. The company dispatched 456,479 motorcycles and scooters in December 2025, up 40% from 324,906 units in December 2024.
Bajaj Auto jumped 4.79%. The company reported 14% increase in total auto sales for December 2025, selling 3.69 lakh units as against 3.23 lakh units sold in December 2024.
Stocks in Spotlight:
Shares of cigarette makers fell after the government imposed additional excise duty on cigarettes and introduced a Health and National Security Cess on pan masala, effective 1 February 2026. The move raises the tax burden above existing GST rates, with cigarettes attracting excise duty of Rs 2,050 to Rs 8,500 per thousand sticks and GST of 40% on tobacco products, which is expected to push up prices and weigh on sales volumes. Godfrey Phillips India fell 20.36%, ITC dropped 13.39%, while VST Industries slipped 2.16%.
Sunteck Realty surged 6.18%. The GST authorities ruled in the company’s favour, fully setting aside a Rs 5.99 crore tax demand, along with interest and penalty, linked to Transferable Development Rights transactions for FY22. The order, passed on December 31, 2025, accepted Sunteck Realty’s submissions against a show cause notice issued in September under Section 73 of the GST Act.
Lupin shed 0.23%. The company said that it has entered into an exclusive License, Supply, and Distribution Agreement with China-based Gan & Lee Pharmaceuticals for a novel fortnightly GLP-1 receptor agonist, Bofanglutide. Bofanglutide injection is indicated for the treatment of type 2 diabetes and for weight management in overweight or obese individuals.
Vodafone Idea fell 1.33%. The company informed that it has received a penalty order amounting to Rs 637.90 crore under the Central Goods and Services Tax (CGST) Act, 2017.
Global Market:
Asia-Pacific:
China:
China’s economy ended the year on a slightly less gloomy note, as factory activity expanded in December for the first time since March, beating expectations, according to official data released Wednesday.
The official manufacturing purchasing managers index rose to 50.1 in December, higher than the 49.2 reading that was recorded in November. A reading above 50 indicates expansion.
Singapore:
Singapore’s economy expanded 5.7% year-on-year for the fourth quarter, driven mainly by strong manufacturing growth in the three months through December. The latest reading is faster than the revised 4.3% growth in the previous quarter. Prime Minister Lawrence Wong announced in his New Year message that the country had clocked a stronger-than-expected 4.8% expansion for the full year of 2025.