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Indian equity markets are likely to make positive start on the first trading session of the calendar year 2026. Traders are likely to adopt a wait-and-watch approach ahead of the release of monthly vehicle sales data from major automobile companies and the HSBC Manufacturing PMI Final data for December.

Some of the key factors to be watched:

India, Israel teams may meet next month on proposed trade pact: The report said that India and Israeli teams are expected to meet next month on the proposed Free Trade Agreement (FTA).

India’s economy growing at robust pace, banking sector remains sound: Reserve Bank report said that the Indian economy is growing at a robust pace, driven by strong domestic demand, low inflation, and the healthy balance sheets of banks.

Creditors realised Rs 4 lakh crore under IBC till September: Reserve Bank report said that creditors have realised Rs 4 lakh crore under the resolution plans initiated under the Insolvency and Bankruptcy Code till September 30, 2025.

Telecom stocks will be in limelight: Telecom Regulatory Authority of India (Trai) has said that the broadband subscriber base in the country crossed the 100 crore-mark in November 2025.

Tobacco related stocks will be in focus: The government has notified that additional excise duty will be levied on tobacco products, and a new cess on pan masala from February 1.

On the global front: The US markets ended in red on Wednesday as traders continued to cash in on recent gains made by the markets. Asian markets remain closed on Thursday account of the new year. 

Back home, Indian equity benchmarks concluded last trading session of calendar year (CY) 2025 on a strong note, amid sustained buying by domestic institutional investors. Traders overlooked the exchange data showing that Foreign Institutional Investors (FIIs) continued their selling streak for the sixth consecutive session on December 30 and offloaded equities worth Rs 3,844.02 crore. Finally, the BSE Sensex rose 545.52 points or 0.64% to 85,220.60 and the CNX Nifty was up by 190.75 points or 0.74% to 26,129.60. 

Some of the important factors in trade:

RBI to conduct OMO purchase of government securities to inject liquidity in system: With an aim to inject liquidity in the system, the Reserve Bank of India (RBI) has decided to conduct an Open Market Operations (OMO) purchase of government securities for an aggregate amount of Rs 50,000 crore on January 5, 2026. 

Governance reforms take centre stage in 2025: As 2025 comes to a close, Union Minister of State for Personnel, Public Grievances and Pensions, Jitendra Singh has marked it as a year of governance reforms where policy interventions were designed to improve ease of living for citizens, alongside create a more enabling and work-friendly environment for government employees. 

Cement industry stocks remain in watch: Rating agency ICRA’s report stated that the Indian cement industry is expected to maintain mid single-digit growth in the next fiscal year (FY27), helped by the factors including steady demand from housing and infrastructure projects.

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