Indian equity markets are expected to start Friday's trading session on a positive note, setting the stage for a marginal weekly gain. However, analysts caution that sustained selling by foreign investors could put a lid on significant advances.
Market Indicators and Weekly Performance
The Gift Nifty futures were trading at 26,338 points as of 7:52 a.m. IST on Friday, January 2, 2026. This indicates a likely opening for the Nifty 50 index above its previous close of 26,146.55 points recorded on Thursday.
For the week, the benchmark indices have managed to stay in positive territory despite thin trading volumes. The Nifty 50 has gained 0.4%, while the BSE Sensex has risen 0.2% during the holiday-shortened week. The subdued liquidity is attributed to Christmas and New Year holidays observed in several major global financial markets.
December proved to be a lackluster month for the benchmarks, which closed marginally lower. Market participants cite a lack of major domestic triggers and the elusive India-U.S. trade agreement as key factors behind the muted performance.
Corporate Updates and Foreign Investor Activity
Investor attention is now shifting towards business updates from companies, particularly banks, ahead of the quarterly earnings season. These updates are crucial for assessing the recovery in corporate earnings growth, which will provide near-term direction for the market.
On the flip side, foreign portfolio investors (FPIs) have been net sellers, creating headwinds for the market. Provisional data shows that FPIs sold shares worth 32.69 billion rupees on Thursday alone. This marks the seventh consecutive session of outflows, a trend that continues to weigh on market sentiment.
Stocks in the Spotlight
Several key corporate developments are likely to influence specific stocks and sectors in Friday's session:
- Fast-Food Merger: In a major consolidation move, Sapphire Foods and Devyani International, the operators of KFC and Pizza Hut in India, have agreed to merge in a deal valued at $934 million. This merger aims to create a dominant fast-food franchisee powerhouse in the world's most populous nation.
- Banking Growth: The South Indian Bank reported a healthy growth in its business for the quarter ending December 31. The bank's gross advances rose by 11.3%, while its deposits grew by 12.2% year-on-year.
- Auto Sales Surge: Two-wheeler giant Hero MotoCorp reported a stellar 40% jump in sales during December. The company attributed this strong performance to robust momentum in its scooter segment and its global business operations.
As the market navigates between positive corporate news and foreign fund withdrawals, traders are likely to adopt a cautious approach in the near term.
