Stock Market Today: Sensex at 85,548, Nifty 26,263; Hero, TVS Rally as ITC Shares Falls 4%

Overview:

• Sensex rose 330 points to 85,548 while Nifty gained 117 points to 26,263.

• Auto stocks climbed up to 1% after strong December sales from Hero, TVS, and Bajaj.

• ITC fell nearly 4% to Rs. 345.35 after the cigarette excise duty hikes.

The Indian stock market today showed strong momentum as benchmark indices traded higher in a broad-based rally. At press time, Sensex traded 330 points higher at 85,548, while the Nifty gained 117 points to reach 26,263. Market participants returned to trading after the New Year break, with positive global cues and strong monthly auto sales data driving investor sentiment. Here’s what happened in the stock market today based on Moneycontrol Live Updates.

Sectoral Performance Shows Mixed Signals

The stock market today saw auto, metal, and realty indices leading gains between 0.5-1%. PSU Bank and media sectors also traded in positive territory. However, the FMCG sector faced significant pressure, falling 1% amid concerns over increased cigarette excise duties.

Among individual stocks, Maruti Suzuki, Hindalco Industries, Bharat Electronics, Asian Paints, and Coal India emerged as major gainers on the Nifty. On the other hand, ITC, Bajaj Auto, Dr Reddy's Labs, Shriram Finance, and Titan Company were among the notable losers.

ITC Faces Steep Decline on Tax Concerns

ITC share price tumbled nearly 4%, hitting a fresh 52-week low of Rs. 345.35 as multiple brokerages downgraded the stock following the government's announcement of new excise duty on cigarettes.

Morgan Stanley downgraded ITC to 'equal-weight' from 'over-weight' with a target price of Rs. 366, while JPMorgan cut its rating to 'neutral' with a reduced target of Rs. 375 from Rs. 475. Analysts suggest the company may need to implement price hikes of 25-35% to maintain net realization per stick, which could impact volumes and earnings growth.

Auto Sector Shines with Strong Sales Numbers

Indian stock market today received a major boost from the automobile sector. The impressive December sales figures are believed to be the main factor behind this latest surge. Hero MotoCorp shares reported a 40% jump in total sales to 4.56 lakh units, with domestic sales growing 42.5%.

TVS Motor Company's total sales surged 50% to 4.81 lakh units, while electric vehicle sales grew 77%. Bajaj Auto also reported strong performance with total sales up 14% at 3.69 lakh units. These robust numbers reflect improving consumer sentiment and the positive impact of recent GST cuts on the sector.

Also Read: Stock Market Today LIVE: Sensex Near 85,550, Nifty Just Below 26,325 on Metal, Autos and Bank Stock’s Rally

Banking and Financial Stocks Show Strength

Nifty Bank index extended gains for the fourth consecutive session, with IndusInd Bank leading with a 1.6% rise. Federal Bank, Yes Bank, HDFC Bank, and ICICI Bank also traded higher. Public sector banks performed particularly well, with the Nifty PSU Bank index rising for the fifth straight session.

Indian Bank surged 2.36% after reporting a 13.4% increase in total business to Rs. 14.30 lakh crore. Punjab & Sind Bank gained over 3% following its announcement of 11.84% growth in total business.

Corporate Actions and Major Developments

Share market news today included several significant corporate announcements. Sapphire Foods fell 5% while Devyani International gained 7% following the announcement of the merger, which will consolidate the Indian franchise operations of KFC and Pizza Hut under one entity.

Vodafone Idea received a penalty notice of Rs. 637.9 crore from tax authorities, though the company plans to contest the order. Aurobindo Pharma announced the acquisition of Khandelwal Laboratories' non-oncology business for Rs. 325 crore.

Midcap and Smallcap Segments Gain Traction

The broader market showed positive momentum with BSE midcap and smallcap indices trading in the green. Ola Electric led midcap gainers with a 6.37% jump, followed by Indian Renewable Energy and NALCO. The market breadth remained favorable, with approximately 2,294 shares advancing against 1,191 declining shares.

Also Read: Best Investment Options in India 2026: Maximize Your Wealth

Investor Outlook

The stock market today reflects cautious optimism as trading volumes remain moderate post the holiday season. With key support at 26,050-26,000 levels and resistance near 26,250-26,300, the Nifty may continue consolidating before a decisive breakout. Investors should monitor upcoming economic data and corporate earnings for fresh triggers in the coming sessions.

FAQs

1. Why is the stock market up today?

The rise in the stock market is attributed to positive news from around the world, good December automobile sales data, and renewed participation following the New Year's holiday. The gains in banking and public sector undertakings contributed to the broad market upturn.

2. Which sector(s) have been the strongest performers today? 

The automobile sector, metal sector, and real estate sector were the top three performing sectors of the day, increasing between 0.5% and 1%. The public sector banks and graphic media were also performing well, while there was some weakness in fast-moving consumer goods (FMCG) stocks because there were concerns regarding increased excise taxes on cigarettes.

3. Why is ITC share price down so much today? 

The stock price of ITC dropped almost 4% this morning due to the Government's increase in the excise tax on cigarettes. Brokerage houses have downgraded ITC stock based on concerns that the price increases will adversely affect both sales volume and profit growth.

4. How did the auto makers perform in their December sales? 

Hero Moto Corp reported 40% growth, TVS Motor experienced a 50% growth increase, and Bajaj Auto had a 14% growth increase in their December sales numbers. The report of growth in December's auto sales assisted in boosting the prices of the auto sector's stocks during trading today.

5. What level(s) should investors monitor on the Nifty going forward? 

According to analysts, Nifty has support in the 26,000-26,050 range and resistance in the 26,250-26,300 zone. Nifty is likely to trade within this range for some time before a decisive breakout.