Indian sovereign bonds face record foreign outflows in December as rupee weakness, fading rate-cut expectations and global reallocations weigh on sentiment, pressuring bond prices and borrowing costs despite prospects of index inclusion boosting future inflows.
Indian stock markets ended 2025 as the world's worst performers. Foreign investors pulled out billions due to currency depreciation and expensive valuations. However, 2026 offers hope. Supportive policies, easing trade risks, and potential rate cuts are expected to boost domestic growth and earnings. This could lead to a market recovery, attracting renewed investor interest.
Indian stock markets begin 2026 at new peaks. Opportunities are emerging in mid-cap stocks, offering a compelling risk-reward. Experts anticipate a strong year driven by rate cuts and domestic growth. Banks and real estate are expected to perform well. Investors should be cautious of highly valued sectors. Primary market issuances are also projected to remain robust.
As of December 30, 2025, 15 NSE-listed stocks with a market capitalisation of over Rs 1,000 crore closed above their 200-day moving average (DMA). Of these, we have highlighted the top 10 that posted gains of more than 2%, according to stockedge.com's technical scan data. The 200-day daily moving average (DMA) is used as a key indicator by traders for determining the overall trend in a particular stock. As long as the stock is priced above the 200-day SMA on the daily time frame, it is generally considered to be an overall uptrend. Take a look:
NSE Holidays for New Year 2026: NSE and BSE will remain open for trading on January 1, even as most major global markets stay shut. Commodity exchanges MCX and NCDEX will be open during the day session but will remain closed in the evening session.
Indian equities are poised for a cautious yet potentially rewarding 2026, with the Sensex and Nifty projected to gain between 8% and 14%. While near-term volatility is expected due to domestic liquidity and currency pressures, a rebound in earnings for FY27 is anticipated to sustain valuations. Investors are advised to deploy capital systematically, with large caps being the preferred segment.
Banking sector profitability strengthened and asset quality improved in FY25, reaching a multi-decadal low GNPA ratio of 2.2%. Banks significantly increased sales of stressed assets to ARCs, with private and foreign banks leading the trend. Non-bank lenders, including NBFCs and HFCs, also reported growth and improved profitability.
Varun Beverages' acquisition of South African brand Twizza is set to double its market share in the region to 20% by 2027. Analysts have raised target prices, citing VBL's consistent domestic performance and international expansion potential. The deal is expected to yield cost synergies and enhance VBL's manufacturing and distribution capabilities in South Africa.
