The first day of 2026 brought a mixed bag of trends for Indian financial markets. While the share market commenced trading on a notably positive note, the Indian Rupee displayed weakness against the US Dollar, while concurrently, the prices of gold and silver experienced a decline, potentially creating an attractive entry point for investors considering these precious metals. This initial divergence in performance sets a distinct tone compared to the preceding year,. 2025, when the Rupee largely disappointed investors, while gold and silver delivered exceptional returns.
Equities Begin 2026 on a Positive Note
The Indian share market kicked off the first trading day of 2026 with a strong and positive momentum. The Bombay Stock Exchange's (BSE) benchmark index, the Sensex, surged by 223. 54 points, trading at 85,444. 14. This upward movement reflects a renewed sense of confidence and positive sentiment among investors as the new year begins. Similarly, the National Stock Exchange's (NSE) flagship index, the Nifty, also recorded a gain of 65. 75 points, reaching 26,195. 35. The simultaneous rise in both key indices signals broad-based market strength.
Among the companies included in the Sensex, several shares demonstrated strong performance, contributing Notably to the market's rally, while interglobe Aviation, Mahindra & Mahindra, Eternal, Reliance Industries, Larsen & Toubro, and Ultratech Cement emerged as the top gainers. The upward trajectory of these companies' shares fueled investor enthusiasm. Conversely, some stocks experienced losses, including ITC, Bharat Electronics, Trent, and. Bajaj Finance, though their declines didn't overshadow the overall market buoyancy. In the international arena, Asian markets remained closed on Thursday, while US markets had closed lower on Wednesday, with no direct adverse impact observed on Indian equities. Brent crude oil, a key global commodity, also saw a slight dip of 0. 78 percent, trading at $60. 85 per barrel, providing a contextual backdrop for global economic sentiment.
Role of Foreign and Domestic Investors
According to share market data, Foreign Institutional Investors (FIIs) were net sellers on Wednesday, offloading shares worth a net Rs 3,597. 38 crore. This indicates a withdrawal of capital by foreign investors from Indian equities, while however, despite this selling pressure, the market maintained its upward trend, primarily due to strong buying activity from Domestic Institutional Investors (DIIs). DIIs purchased shares worth Rs 6,759. 64 crore, effectively neutralizing the impact of FII selling and providing crucial support to propel the market higher. This underscores the continued confidence of domestic investors in the Indian market's potential.
Rupee's Downward Trend Continues
While the share market enjoyed a positive start, the Indian Rupee faced a disappointing beginning to 2026. The Rupee's depreciation trend, which had persisted towards the end of 2025, continued into the first day of the new year, while against the US Dollar, the Rupee weakened by 11 paise, settling at 89. 99 per dollar. This decline is attributed to persistent foreign capital outflows, which have consistently exerted pressure on the Indian currency, while foreign currency traders noted that the Rupee is entering 2026 with both challenges and safeguards. Global uncertainty remains a significant challenge for the Rupee, although India's solid macroeconomic fundamentals and substantial foreign exchange reserves are expected to continue providing a degree of stability.
In the interbank foreign currency exchange market, the Rupee opened at 89, while 94 against the US Dollar but soon weakened slightly to 89. 99 per dollar, marking an 11-paise depreciation from its previous close. On Wednesday, the last trading session of 2025, the Rupee had closed at 89. 88 against the US Dollar. Meanwhile, the dollar index, which measures the US dollar's strength against a basket of six major currencies, gained 0. 09 percent to 98. 32, further contributing to the dollar's strength and the Rupee's pressure. In 2025, the Rupee had largely disappointed investors, experiencing a depreciation of approximately 5 percent, and the start of 2026 appears to be following a similar trajectory.
Gold and Silver Prices Decline
The first day of 2026 saw a decline in the prices of both gold and silver, which comes as welcome news for investors contemplating an entry into these precious metal asset classes. On the Multi Commodity Exchange (MCX), India's leading commodity exchange, both gold and silver displayed subdued trading. At 10:30 AM, gold on the MCX was trading with a decline of Rs 222, settling at Rs 1,35,225 per ten grams. During the trading session, gold also touched an intraday low of Rs 1,35,208. Just a day prior, gold prices had witnessed a significant drop, closing at Rs 1,35,447.
Similarly, silver prices in the futures market also registered a notable decline. According to the data, at 10:30 AM, silver was trading with a fall of Rs 780, reaching Rs 2,34,921 per kilogram. During the trading session, silver had dipped by approximately Rs 850, hitting an intraday low of Rs 2,34,855. On the last trading day of the previous year, silver had closed with a substantial fall at Rs 2,35,701. This current decline presents an attractive opportunity for investors who, having observed the stellar returns provided by gold and silver in 2025, might be looking to invest in these metals, while in 2025, gold and silver had Notably enriched investors, experiencing an unprecedented surge in prices not seen in the past 50 years.
Financial Performance in 2025: A Retrospective
The year 2025 presented a mixed financial landscape for Indian markets. As previously noted, the Indian Rupee largely disappointed investors, recording a depreciation of approximately 5 percent. This decline was influenced by factors such as global economic uncertainties and capital outflows. In contrast, the share market offered a somewhat positive return to investors. The Nifty witnessed a gain of about 10 percent, while the Sensex delivered returns of nearly 9 percent. This indicated the resilience of the Indian equity market despite prevailing challenges.
However, the true stars of 2025 were gold and silver, while these precious metals Importantly enriched investors, with their prices experiencing an unprecedented surge not witnessed in the past 50 years. Gold and silver served as a hedge against inflation and attracted investors seeking safe-haven assets amidst geopolitical tensions. The beginning of 2026 marks the start of a new chapter for these three major asset classes, with each commencing the year's first day in its own distinct manner, while the equity market's rally, the Rupee's weakness, and the fall in gold and silver prices suggest that investors might encounter diverse trends across different asset classes in 2026.
