Weekly Market Report: Indian Indices, Mutual Funds, Commodities & Global Outlook – Week Ending 2 Jan 2026

Indian Equity Market – Index Performance
Indian equity markets ended the week on a strong note, supported by positive domestic cues and expectations from the upcoming earnings season.
Key Indices:

• Nifty 50: Closed near record highs around 26,300 levels, gaining on a weekly basis.
• BSE Sensex: Traded in the range of 85,700–85,800, posting steady weekly gains.
• Bank Nifty: Remained firm, supported by selective buying in private banks.
• Midcap & Smallcap Indices: Continued to outperform large caps, indicating broader market participation.

Market Drivers:

• Positive domestic macro indicators.
• Optimism around Q3 corporate earnings.
• Strong retail participation despite intermittent foreign institutional selling.

2. Market Updates – Key Observations
Markets started 2026 with positive momentum after a volatile December.
IT and banking stocks provided stability, while selective buying was seen in consumption and capital goods.
Volatility remained moderate, reflecting cautious optimism among investors.

3. Mutual Fund Weekly Overview
Equity Mutual Funds:

• Equity-oriented mutual funds delivered positive returns during the week, with select funds generating up to 3–4% gains.
• SIP inflows remained strong, highlighting continued confidence among long-term retail investors.

Fund Manager Strategy:

• Mutual funds increased cash allocation marginally, adopting a cautious stance at higher market valuations.
• Large-cap and flexi-cap funds saw steady inflows, while mid- and small-cap exposure was managed selectively.

Investor Insight:
Long-term SIP investors continued to benefit from market volatility, reinforcing disciplined investing strategies.

4. Wealth Management Perspective

• Indian equities remain relatively attractive compared to global peers despite elevated valuations.
• Wealth managers are focusing on asset allocation rather than aggressive equity exposure.
• Balanced portfolios with equity, debt, and gold are being recommended to manage volatility and protect long-term wealth.

5. Commodities Update
Gold

• Gold prices moved higher during the week, supported by expectations of interest rate cuts in global markets and a softer dollar.
• Gold continues to act as a hedge against market volatility and global uncertainty.

Silver

• Silver prices remained strong, supported by both investment demand and industrial usage.
• Prices are trading near multi-year highs, though short-term volatility remains possible.

Crude Oil

• Crude oil prices stayed under pressure due to global oversupply concerns.
• Weak demand outlook and rising inventories continue to weigh on oil prices, despite geopolitical tensions.

6. Global Market and Foreign News

• Global equity markets witnessed moderate inflows, supported by optimism around technology and AI-driven growth.
• Oil markets remained weak due to oversupply and slower global demand, particularly from China.
• Global central bank policies and interest rate expectations remain key triggers for market movement.

7. Outlook – Forward View

• Indian markets may consolidate at higher levels in the near term as investors await corporate earnings and economic data.
• Long-term fundamentals remain strong, supported by domestic growth, consumption, and investment-led expansion.
• Investors are advised to stay invested, avoid timing the market, and focus on asset allocation and quality investments.

Long-Term Strategy:

• Continue SIPs in equity mutual funds.
• Maintain diversification across asset classes.
• Use market corrections as opportunities for long-term wealth creation.