Why Is Stock Market Rising Today? The benchmark equity indices Sensex and Nifty traded over half a per cent higher on Friday, tracking firm global cues and buying interest in index heavyweights.
At around
12:30 p.m., the Sensex advanced 475.51 points or 0.56 per cent to 85,664.11, while the broader Nifty rose to 26,300.30, up 153.75 points or 0.59 per cent.
Hindalco Industries, Coal India, and Bharat Electronics were the top gainers in the Nifty50 pack, rising up to 2 per cent, while ITC and Bajaj Auto were the major laggards, declining up to 4 per cent. Market breadth was positive as about 2183 shares advanced, 1204 shares declined and 165 shares were unchanged.
IT stocks were largely range-bound, with gains in heavyweight stocks helping limit sectoral losses. The Nifty IT index edged up 0.35 per cent.
Most sectoral indices traded in the green. Nifty FMCG slipped 1.14 per cent, while Nifty Bank, Nifty Auto, Nifty Financial Services, Nifty Realty and Nifty Metal indices gained between 0.7 and 1.2 per cent. The broader market also remained firm, with midcap and smallcap indices rising between 0.6 and 0.9 per cent, pointing to broad-based participation.
What Is Driving The Markets Higher?
1) Global markets lend support
Asian equities were largely positive, with South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng trading in the green. US futures were also up as much as 0.7 percent, pointing to a firm opening for Wall Street later in the day.
2) Strength in heavyweight stocks
Buying interest was concentrated in large-cap names, with Reliance Industries rising nearly 1 percent for the second straight session.
“The monthly sales data from auto companies as well as business updates from other sectors signal a likely improvement in December quarter earnings, lifting markets,” G Chokkalingam, Founder and Head of Research at Equinomics Research, told Reuters.
3) Support from domestic institutions
Consistent buying by domestic institutional investors (DIIs) provided a cushion to the market.
“Steady domestic institutional inflows continue to provide broader support, helping offset aggressive selling by foreign investors,” said Ponmudi R, CEO of Enrich Money.
Chokkalingam added that a positive earnings season, followed by a favourable Union Budget and a potential trade agreement with the US, could act as key triggers for markets after the consolidation seen in 2025.
4) Rupee shows mild strength
In the currency market, the rupee traded in a narrow range and appreciated 6 paise to 89.92 against the US dollar. Forex traders said the USD/INR pair is expected to remain range-bound, with the RBI defending the 90 level, even as foreign fund outflows persist.
5) Auto stocks extend rally
The automobile sector played a key role in lifting the markets. The Nifty Auto index advanced for the fourth straight session, rising nearly 1 per cent to 28,732.65 and hitting a fresh intraday high of 28,808.40.
Mahindra & Mahindra and Maruti Suzuki led the gains after reporting strong December sales numbers. Passenger vehicle sales touched a record 45.5 lakh units in 2025, marking a nearly 6 per cent increase over the previous year. Growth was driven by higher disposable incomes, GST-related benefits, demand for second vehicles, and increasing preference for customised offerings.
Maruti Suzuki posted a robust 22 per cent jump in sales, while Mahindra & Mahindra and Tata Motors Passenger Vehicles overtook Hyundai Motor India in market share, highlighting a shift in the competitive dynamics of the auto sector.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the strong 25.8 per cent year-on-year growth in passenger vehicle sales in December reflects healthy economic momentum, though its sustainability at a slower pace will be crucial for future earnings growth.
Market technicals
Devarsh Vakil, Head of Prime Research at HDFC Securities, said a sustained move above the 26,234 level could indicate a breakout from the ongoing consolidation and pave the way for a retest of record highs. He added that 25,900 is likely to act as immediate short-term support for the Nifty.
