..... . VALI disclosures . .....: 01/01/2026, FinancialMarket REPORT

Thursday, January 1, 2026

01/01/2026, FinancialMarket REPORT

The Indian stock market witnessed healthy cross-segment buying on the last day of 2025, driven by short covering triggered by optimism that the coming year will be better than the current one, due to anticipated earnings growth, an India-US trade deal, and the return of foreign investors to the Indian market.

The Sensex jumped 546 points, or 0.64%, to close at 85,220.60, with Reliance, Kotak Mahindra Bank, and Axis Bank as the top contributors to the gains. The Nifty 50 settled at 26,129.60, rising 191 points, or 0.74%. The BSE Midcap index rose by 1%, while the Smallcap index jumped 1.19%.

Investors earned nearly ₹4 lakh crore in a single session as the overall market capitalisation of BSE-listed firms rose to nearly ₹476 lakh crore from ₹472 lakh crore in the previous session.

Indian stock market: 10 key highlights from the day

1. Why did the Indian stock market rise today?

The Indian stock market ended higher on short covering after the recent correction. The focus is now on the upcoming Q3 earnings season, which is expected to be better than the previous several quarters.

"Markets ended 2025 on a strong note, posting a broad-based recovery. Looking ahead, expectations are rising for a constructive rebound in 2026, supported by improving demand conditions. Investor sentiment is likely to hinge on corporate earnings and a potential uptick in nominal GDP growth," said Vinod Nair, Head of Research, Geojit Investments Limited.

2. Top gainers in the Nifty 50 index

JSW Steel (up 4.88%), ONGC (up 2.46%), and Tata Steel (up 2.35%) ended as the top gainers in the index. As many as 44 stocks ended higher in the Nifty kitty of stocks.

3. Top losers in the Nifty 50 index

TCS (down 1.13%), Tech Mahindra (down 0.85%), and Grasim Industries (down 0.31%) ended as the top losers in the index.

4. Sectoral indices today

Barring Nifty IT (down 0.30%), all sectoral indices ended with gains. Nifty Oil and Gas jumped 2.66%, followed by Consumer Durables, Media, Metal, PSU Bank, Auto, and Private Bank, each rising by over a per cent.

Nifty Bank climbed 0.69% to end at 59,581.85. The Financial Services index jumped 0.84%.

5. Most active counters in terms of volume

Vodafone Idea (335.4 crore shares), Filatex Fashions (33 crore shares), and Tata Silver Exchange Traded Fund (19.75 crore shares) were the most active counters in terms of volume on the NSE.

6. 14 stocks jump more than 15% on BSE

KSR Footwear, California Software Company, Softtech Engineers, Kiri Industries, SRG Housing Finance, and Orient Technologies were among the 14 stocks that surged more than 15% on the BSE.

7. Advance-decline ratio

Out of 4,374 stocks traded on the BSE, 2,799 advanced, while 1,413 declined. Some 162 stocks remained unchanged.

8. Over 120 stocks hit 52-week highs

Some 126 stocks, including Titan Company, Shriram Finance, Indus Towers, IDFC First Bank, Canara Bank, and BPCL, hit their 52-week highs in intraday trade on the BSE.

9. Nearly 150 stocks hit 52-week lows

As many as 145 stocks, including Crompton Greaves Consumer Electricals, Embassy Developments, Poly Medicure, and Whirlpool of India, hit their 52-week lows on the BSE.

10. Nifty's technical outlook

According to Sudeep Shah, Vice President - Technical and Derivatives Research at SBI Securities, the previous swing high zone of 26,230-25,250 will act as an immediate resistance for Nifty 50.

Shah said any sustained move above the 26,250 level could extend the rise to 26,350, followed by 26,500. On the downside, the psychological zone of 26,050-26,000 will act as a strong support for the index.

Ajit Mishra, the SVP of research at Religare Broking, underscored that the Nifty has once again approached the upper end of its prevailing consolidation range near 26,200.

"A decisive breakout above this level could trigger the next leg of upward momentum, while failure to do so may lead to renewed profit-taking," said Mishra.

source: Mint

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms.We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Thursday, January 1, 2026

01/01/2026, FinancialMarket REPORT

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