Muted global cues, but domestic triggers likely to move the market on the first trading day of 2026.
Indian stock markets are expected to begin the new year on a cautious yet positive note. Early trends from GIFT Nifty on January 2, 2026, indicated a flat-to-positive start, with the index trading around 26,314. The mood remains subdued globally as most markets reopened after holiday closures. However, stock-specific actions are likely to dominate the first trading day of the year, with major companies such as Vodafone Idea, RailTel Corporation, Maruti Suzuki, Hyundai India, Indian Bank, HUDCO, and others in focus.
Vodafone Idea under pressure after tax penalty notice
Shares of Vodafone Idea may come under selling pressure after the telecom company received a notice from the Office of the Additional Commissioner, CGST, Ahmedabad South. The order proposes a hefty penalty of ₹637.9 crore, along with additional tax and interest, citing alleged discrepancies in tax payments and excessive input tax credit claims.
Given the company’s ongoing financial challenges and focus on raising capital to fund 5G rollout, this development could weigh on investor sentiment in the near term.
Hyundai India reports steady sales growth
On a brighter note, Hyundai Motor India started the new year with a positive update. The company reported total vehicle sales of 58,702 units in December 2025, marking a 6.6% year-on-year increase. Domestic sales stood at 42,416 units, reflecting strong local demand, while exports continued to play a key role in driving growth.
The numbers underline Hyundai’s consistent performance in India’s competitive passenger vehicle market, supported by strong customer response to its SUV lineup and electric models.
HUDCO sees strong loan approvals in Q3
The Housing and Urban Development Corporation (HUDCO) remained active in supporting India’s housing and infrastructure push. During the third quarter of the current fiscal, the company sanctioned loans worth over ₹46,000 crore. For the April–December 2025 period, the total sanctioned amount touched ₹1,39,151 crore — a strong reflection of rising demand for infrastructure and housing finance.
HUDCO’s robust project pipeline and government-backed growth initiatives continue to enhance its long-term outlook.
Devyani International to merge with Sapphire Foods
In a major consolidation move in India’s quick service restaurant (QSR) space, Devyani International announced plans to merge with Sapphire Foods India. This merger will bring popular brands like KFC and Pizza Hut under one listed entity.
Since both companies operate these brands across different regions, the merger is expected to streamline operations, optimize costs, and create a stronger, unified entity in the growing QSR segment. Market analysts expect investors to keep a close watch on this development as it could reshape the competitive landscape for food service companies in India.
Maruti Suzuki records highest-ever annual sales
India’s largest carmaker, Maruti Suzuki, ended 2025 on a high, posting its highest-ever sales in a calendar year. The automaker continues to lead the passenger vehicle segment despite rising competition in the SUV category.
The company’s consistent performance amid shifting consumer preferences underscores its strong brand presence, extensive distribution network, and wide product range. Analysts expect Maruti’s strong sales momentum to support its financial performance in the upcoming quarters.
Aurobindo Pharma expands through acquisition
Aurobindo Pharma added strength to its domestic portfolio by acquiring the branded non-oncology prescription formulations business of Khandelwal Laboratories Private Limited through its wholly owned subsidiary, Auro Pharma Ltd.
This acquisition is a strategic move to enhance Aurobindo’s foothold in India’s branded formulations segment, complementing its diversified product basket and expanding its market presence across therapeutic areas.
Indian Bank continues growth momentum
Indian Bank reported a robust set of numbers for the December quarter (Q3 FY26). The bank’s total business rose 13.4% year-on-year to ₹14.30 lakh crore, while gross advances increased 14.5% to ₹6.40 lakh crore.
These healthy growth figures reflect the bank’s consistent credit expansion and strong operational performance. With solid fundamentals and improving asset quality, Indian Bank remains one of the better-positioned public sector lenders in the current environment.
RailTel bags ₹567 crore digital health project
Infra stock RailTel Corporation of India also made headlines after securing a ₹567 crore order from the Assam Health Infrastructure Development & Management Society. The project aims to develop and maintain a Hospital Management Information System (HMIS) across the state.
The ambitious project, to be completed by January 2032, significantly boosts RailTel’s long-term order book and reinforces its position as a key player in India’s digital infrastructure mission.
Olectra Greentech begins new EV plant operations
In the electric mobility sector, Olectra Greentech announced the commencement of commercial production at Phase I of its new greenfield EV manufacturing facility in Hyderabad. Operations started on December 31, marking a big step forward for the company in scaling its electric bus and commercial vehicle manufacturing capabilities.
The move strengthens Olectra’s position in India’s fast-growing electric mobility ecosystem and supports the government’s broader clean transport push.
Market outlook
With GIFT Nifty hinting at a flat-to-positive open, Indian equities may start the session on a steady note on January 2. Global cues remain muted after holiday trade, meaning domestic developments and company-specific news will likely dictate market moves.
Investors are expected to track key updates from companies like Vodafone Idea, RailTel, Maruti Suzuki, and Hyundai India closely, as these firms set the tone for the first market session of 2026.
