NIFTY 100

Sensex and Nifty recovered early losses, led by buying in auto and metal stocks, Auto shares rose ahead of monthly sales data; metal stocks rebounded after a dip, India's industrial production grew 6.7 percent in November, a two-year high

* Sensex and Nifty recovered early losses, led by buying in auto and metal stocks
* Auto shares rose ahead of monthly sales data; metal stocks rebounded after a dip
* India's industrial production grew 6.7 percent in November, a two-year high

Sensex and Nifty rebounded from early losses on Tuesday, supported by buying in auto and metal stocks. Positive global cues, a stronger rupee, and strong industrial output aided sentiment, while Nifty expiry added volatility to the session.

shorts/business/nifty-recovers-200-pts-from-day-s-low-nifty-above-25-900-three-key-reasons-behind-market-rebound

* Sensex and Nifty recovered early losses, led by buying in auto and metal stocks
* Auto shares rose ahead of monthly sales data; metal stocks rebounded after a dip
* India's industrial production grew 6.7 percent in November, a two-year high

The equity benchmark indices Sensex and Nifty recovered from early losses in Tuesday's trade as buying in metals and auto shares supported the domestic market.

In morning trade, the Sensex declined by 224 points or 0.26 percent to an intraday low of 84,470.94, while the broader Nifty slipped below the 25,900 mark to 25,878, down 64 points or 0.24 percent.

Buying interest, however, emerged shortly thereafter, lifting the Sensex by 257 points to 84,728 by around 10:45 a.m., while the Nifty recovered to 25,952.

<a href="https://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriramfinance/STF" target="_blank">Shriram Finance</a>, Mahindra &amp; Mahindra and Bajaj Auto were among the top gainers in the Nifty50 pack, rising up to 2 percent, while <a href="https://www.moneycontrol.com/india/stockpricequote/online-services/eternal/Z" target="_blank">ETERNAL</a> and Bajaj Finserv were among the major laggards, declining up to 1 percent.
<h3>Key factors behind market rise</h3>
1) Value buying: Value buying emerged after the Nifty declined for three consecutive sessions amid thin year-end volumes.

"A clear directional change will happen only early in the new year when large institutions are back in action. It would be better for investors to watch the market now and wait for new triggers and new directional moves. However, weakness in the market can be used to nibble at high-quality large caps," said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

2) Auto, metal stocks in focus: Auto shares saw buying interest ahead of the release of monthly sales numbers, due in two days, which are expected to provide cues on the sustainability of consumption demand. The Nifty Auto was up nearly 1 percent amid buying in the index.

Buying was also seen in metal shares after a brief decline in commodities on Monday. The Nifty Metal index was trading about 0.7 per cent higher.

"The auto sales numbers expected in two days will give an indication of the sustainability of the consumption boom in the economy. This is significant from the economic growth perspective too, Vijayakumar said.
<h3><a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-flat-start-us-asian-markets-fall-3-liveblog-13747857.html" target="_blank">Stock Market LIVE Updates</a></h3>
3) Positive global cues: In Asian markets, Hong Kong’s Hang Seng index and Japan’s Nikkei 225 were trading in positive territory. US futures were also in the green, indicating a positive opening for the US markets after they ended lower on Monday.

4) Rupee rises: The rupee rose 3 paise to 89.95 against US dollar in early trade on Tuesday buoyed by a weaker greenback and strong IIP numbers. However, FII outflows, marginally higher crude oil prices, and a weaker opening in the domestic equity markets capped sharp gains in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 89.98 against the US dollar before rising to 89.95, up 3 paise from its previous close.

5) IIP Growth: India's industrial production grew at a two-year high of 6.7 percent in November this year, driven by strong performances in mining and manufacturing, mainly on account of order pile-up following a cut in GST rates. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 5 percent in November 2024.

6) Nifty expiry: Tuesday is also the weekly and monthly expiry of Nifty derivatives contracts. The expiry sessions often see higher volatility as participants roll over positions to the next series or square off existing positions, which can lead to sharp intraday movements in the index.
<h3>Technical outlook</h3>
Anand James, Chief Market Strategist at Geojit Investments, said the Nifty’s inability to sustain above the 26,050–26,077 zone has triggered a downward bias towards the 25,935–25,850 levels.

"However, we expect attempts to pull back early in the day, though we will wait for at least a push above 25,970–26,000 to play such upswings," he said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

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Sensex recovers 250 pts from day's low, Nifty above 25,950: Value buying, 5 other key factors behind market rebound

Sensex news today: Sensex recovers 250 pts from day's low, Nifty above 25,950 - Value buying, 5 other key factors behind market rebound

The equity benchmark indices Sensex and Nifty recovered from early losses in Tuesday's trade as buying in metals and auto shares supported the domestic market.

In morning trade, the Sensex declined by 224 points or 0.26 percent to an intraday low of 84,470.94, while the broader Nifty slipped below the 25,900 mark to 25,878, down 64 points or 0.24 percent.

Buying interest, however, emerged shortly thereafter, lifting the Sensex by 257 points to 84,728 by around 10:45 a.m., while the Nifty recovered to 25,952.

Shriram Finance, Mahindra &amp;amp; Mahindra and Bajaj Auto were among the top gainers in the Nifty50 pack, rising up to 2 percent, while ETERNAL and Bajaj Finserv were among the major laggards, declining up to 1 percent.
Key factors behind market rise
1) Value buying: Value buying emerged after the Nifty declined for three consecutive sessions amid thin year-end volumes.

&quot;A clear directional change will happen only early in the new year when large institutions are back in action. It would be better for investors to watch the market now and wait for new triggers and new directional moves. However, weakness in the market can be used to nibble at high-quality large caps,&quot; said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

2) Auto, metal stocks in focus: Auto shares saw buying interest ahead of the release of monthly sales numbers, due in two days, which are expected to provide cues on the sustainability of consumption demand. The Nifty Auto was up nearly 1 percent amid buying in the index.

Buying was also seen in metal shares after a brief decline in commodities on Monday. The Nifty Metal index was trading about 0.7 per cent higher.

&quot;The auto sales numbers expected in two days will give an indication of the sustainability of the consumption boom in the economy. This is significant from the economic growth perspective too, Vijayakumar said.
Stock Market LIVE Updates
3) Positive global cues: In Asian markets, Hong Kong’s Hang Seng index and Japan’s Nikkei 225 were trading in positive territory. US futures were also in the green, indicating a positive opening for the US markets after they ended lower on Monday.

4) Rupee rises: The rupee rose 3 paise to 89.95 against US dollar in early trade on Tuesday buoyed by a weaker greenback and strong IIP numbers. However, FII outflows, marginally higher crude oil prices, and a weaker opening in the domestic equity markets capped sharp gains in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 89.98 against the US dollar before rising to 89.95, up 3 paise from its previous close.

5) IIP Growth: India's industrial production grew at a two-year high of 6.7 percent in November this year, driven by strong performances in mining and manufacturing, mainly on account of order pile-up following a cut in GST rates. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 5 percent in November 2024.

6) Nifty expiry: Tuesday is also the weekly and monthly expiry of Nifty derivatives contracts. The expiry sessions often see higher volatility as participants roll over positions to the next series or square off existing positions, which can lead to sharp intraday movements in the index.
Technical outlook
Anand James, Chief Market Strategist at Geojit Investments, said the Nifty’s inability to sustain above the 26,050–26,077 zone has triggered a downward bias towards the 25,935–25,850 levels.

&quot;However, we expect attempts to pull back early in the day, though we will wait for at least a push above 25,970–26,000 to play such upswings,&quot; he said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Nifty’s Best Case Target  & Top Stock Bets For 2026| IPO Wave Set To Get Bigger| Opening Bell Live

Nifty’s Best Case Target  &amp; Top Stock Bets For 2026| IPO Wave Set To Get Bigger| Opening Bell Live

EC tells DMs not to issue hearing notices to 'unmapped' voters in West Bengal, Voters aged 85+, PWDs, and pregnant women exempted from hearings, BLAs-2 of political parties barred from hearing venues after recent disruptions

* EC tells DMs not to issue hearing notices to 'unmapped' voters in West Bengal
* Voters aged 85+, PWDs, and pregnant women exempted from hearings
* BLAs-2 of political parties barred from hearing venues after recent disruptions

The Election Commission has told West Bengal district officials not to summon ‘unmapped’ voters for hearings during the electoral roll revision and exempted seniors, PWDs, and pregnant women. Over 58 lakh names were deleted, sparking criticism and objections.

shorts/india/ec-halts-hearings-for-unmapped-voters-in-bengal-exempts-seniors-pwds-and-pregnant-women

Indian benchmark indices, Sensex and Nifty, are likely to see a flat to negative start on December 30, with cues coming from GIFT Nifty, which was trading marginally lower at around 25,936.50.

Track the latest updates on GIFT Nifty right here on Moneycontrol.

The Indian benchmark indices started the week on a negative note, extending the fall on third consecutive session on December 29 amid broad-based selling due to persistent foreign fund outflows, and geopolitical developments.

At close, the Sensex was down 345.91 points or 0.41 percent at 84,695.54, and the Nifty was down 100.2 points or 0.38 percent at 25,942.10.

Here is how financial markets across the globe fared overnight:

GIFT Nifty (Flat)

The GIFT Nifty is trading flat at around 25,936.50, indicating a flat to negative opening for the day.

Asian Equities (Slip)

A rally in Asian stocks paused after a seven-day run, tracking technology-led declines on Wall Street.



US Equities (Down)

Wall Street's main indexes ended lower on Monday, kicking off the final week of the year on a softer note, as heavyweight technology stocks retreated from last week's gains that had pushed the S&amp;amp;P 500 to record highs.

The information technology sector weighed on the S&amp;amp;P 500, as most tech and AI-linked stocks declined. Nvidia slipped 1.2% and Palantir Technologies dropped 2.4%.

The S&amp;amp;P 500 lost 24.20 points, or 0.35%, to 6,905.74 and the Nasdaq Composite lost 118.75 points, or 0.50%, to 23,474.35. The Dow Jones Industrial Average fell 249.04 points, or 0.51%, to 48,461.93.



US Bond Yield (Flat)

The yield on 10-year Treasuries was little changed at 4.1%, while 2-year Treasuries was was trading at around 3.45 percent.



Dollar Index (Flat)

The U.S. dollar was steady on Tuesday ahead of the Federal Reserve's release of its December minutes report, which is expected to reveal divisions inside the central bank about next year's policy pathway.



Asian Currencies (Mixed)

Asian currencies were trading mostly lower in the the early trade on Tuesday with Indonesian Rupiah leading the losers, followed by Japanese Yen, Taiwan Dollar.



Crude (Down)

Oil prices retreated a touch early on Tuesday after rising more than 2% in the previous session, partly driven by spillover from a pullback in precious metals even as escalating Russia–Ukraine tensions left markets grappling with supply disruption fears.



Gold (Up)

Gold and silver fluctuated after a slump from fresh all-time highs.



Fund Flow Action

Foreign Institutional Investors (FIIs) continued their selling on fifth straight session on December 29 as they offloaded equities worth Rs 2759 crore, while Domestic Institutional Investors (DIIs) purchased equities of Rs 2643 crore, on same day.



Hope you're all set for today's trade. We wish you a profitable day ahead.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Tick: Top global cues to watch in today’s trade

Musk and Gates feud over USAID funding cuts and global health aid., Musk labels USAID "criminal," denies harm from funding cuts., Gates warns cuts could reverse disease progress, urges Musk to witness impact.

* Musk and Gates feud over USAID funding cuts and global health aid.
* Musk labels USAID "criminal," denies harm from funding cuts.
* Gates warns cuts could reverse disease progress, urges Musk to witness impact.

Elon Musk and Bill Gates are feuding over cuts to USAID funding. Musk, leading a task force to reduce federal spending, supports the cuts, while Gates warns they threaten global health. The debate centers on whether governments or billionaires should fund aid.

shorts/technology/bill-gates-is-a-liar-elon-musk-targets-microsoft-co-founder-again-over-usaid-death-narrative

Sensex Today | Stock Market LIVE Updates: Benchmark indices erased all opening losses and trading flat. Except metal and oil &amp; gas, all other sectoral indices are trading in the red. Shriram Finance, Hindalo, Reliance Industries, are among major gainers on the Nifty, while losers are Apollo Hospitals, Tata Steel, L&amp;T, Jio Financial, Titan Company. BSE Midcap and Smallcap indices down 0.3% each.

Stock Market LIVE Updates: Sensex, Nifty trade flat; Shriram Finance, Hindalco, M&M top gainers

Live Blog

Sensex Today | Stock Market LIVE Updates: Benchmark indices erased all opening losses and trading flat. Except metal and oil &amp;amp; gas, all other sectoral indices are trading in the red. Shriram Finance, Hindalo, Reliance Industries, are among major gainers on the Nifty, while losers are Apollo Hospitals, Tata Steel, L&amp;amp;T, Jio Financial, Titan Company. BSE Midcap and Smallcap indices down 0.3% each.

Stock Market LIVE Updates: Sensex, Nifty trade flat; Shriram Finance, Hindalco, M&amp;M top gainers

Metals sector poised for growth in 2026 amid global demand changes., AI, green energy, and grid upgrades boost metals demand and industry change, FIIs may return to Indian stocks in 2026 with better earnings and macro stability.

* Metals sector poised for growth in 2026 amid global demand changes.
* AI, green energy, and grid upgrades boost metals demand and industry change
* FIIs may return to Indian stocks in 2026 with better earnings and macro stability.

Jimeet Modi sees metals as a key growth sector for 2026 due to AI, green energy, and supply deficits. He expects resilient Q3 FY26 earnings, selective PSU bank consolidation, possible FII inflows, and warns of a potential AI stock bubble.

shorts/business/daily-voice-ai-hype-fragile-us-growth-fii-caution-and-why-metals-may-still-shine-in-2026

* Metals sector poised for growth in 2026 amid global demand changes.
* AI, green energy, and grid upgrades boost metals demand and industry change
* FIIs may return to Indian stocks in 2026 with better earnings and macro stability.

Jimeet Modi, the Founder and CEO of SAMCO Group believes metals represent a significant opportunity as the global economy enters 2026.

"The sector is undergoing a structural transformation, shifting from cyclical commodities to critical strategic assets. The alignment of AI infrastructure, green energy transition, massive grid modernisations and government measures to protect the domestic industry has created a unique demand floor," he said in an interview to Moneycontrol.

With supply deficits emerging in key base metals and stabilized input costs, the metals industry is positioned for substantial value creation and sustained profitability throughout the entirety of the upcoming fiscal year, he said.

Do you expect any significant global challenges for Indian equities in 2026?

US recorded its highest unemployment rate of 4.6% in the last 4 years in the month of November. On the other hand, the US GDP grew by a healthy 4.3% for the quarter ending in September. US economy has expanded but it didn’t add many jobs. This is a fragile environment of growth which can lead to recessions going forward.

If the AI related productivity gains materialise then unemployment could shoot up and if it doesn’t, then companies who have pumped in billions of dollars for AI capex will have to take major write offs. This is the fine balancing act that the global markets will have to walk on in 2026. Developments around these changes will pose challenges not only for Indian equities but for the entire emerging markets.

Do you expect a strong Q3 FY26 earnings season?

Q3 FY26 earnings are expected to be resilient, especially in sectors benefiting from GST rationalisation and festive-season demand. Cyclical pockets like hotels, travel, and discretionary consumption tend to see operating leverage during this period.

Do you expect the government to announce additional measures in the Union Budget to sustain strong economic growth in the coming years despite global challenges?

The government's focus has changed after the General Elections in 2024. Before the elections government's focus was on capital expenditure. The government front-loaded a lot of capex mainly in the railway, infrastructure and defence space earlier.

But after the elections, the government's focus is more on populist measures. This doesn’t mean that the government will slow down its capex spree, but since the government’s kitty is full of populist promises offered during the election period, there is a limited scope for them to add significant capex from what they did last year. I would be very happy to be proven wrong here, but economics weighs heavily than expectations.

Do you see the government possibly announcing major PSU bank consolidation in 2026?

A major, broad-based PSU bank consolidation in 2026 remains unlikely. Following the completion of a significant consolidation cycle, the priority has shifted toward fortifying asset quality, governance standards, and sustainable credit growth. Any future movements will likely be selective and strategic, targeting specific operational efficiencies rather than pursuing scale for its own sake.

The current landscape suggests a focus on organic strength and capital adequacy over further structural disruption. This targeted approach ensures stability while allowing for surgical adjustments to the banking architecture as market conditions dictate throughout the upcoming fiscal year.

Do you see the new US Federal Reserve governor continuing the monetary easing cycle in 2026?

The current US Fed Governor Jerome Powell will end his term in May 2026. Kevin Hassett who is a ‘Trump man’, is the frontrunner for the Fed chair. President Trump has been yearning for bigger rate cuts ever since he became the President.

With his own man now in the Fed chair, getting more rate cuts won’t be a problem. However, even if Hassett becomes the Fed chief, he won’t be able to ignore inflation and cut rates beyond a point. Inflation has been running above the Fed’s comfort level of 2% for more than 4 years. If larger rate cuts materialise, then they would certainly add up to already sticky inflation.

Do you think FIIs still believe Indian market valuations are high, considering the inconsistency in their flows? Do you see any possibility of net inflows in 2026?

FIIs have remained cautious largely due to valuation discomfort, especially in segments where earnings growth has lagged price performance. The inconsistency in flows reflects selective allocation rather than a negative view on India as a market.

India continues to offer superior growth visibility, improving balance sheets, and macro stability compared to peers. As earnings catch up and global risk appetite stabilises, we do see the possibility of net FII inflows in 2026, particularly into large caps and sectors with strong cash flows and predictable earnings.

Do you see a bubble building up in AI stocks globally? Will the IT sector come back into focus in 2026?

There are credible indicators that the global AI stock rally is exhibiting bubble-like characteristics - skyrocketing valuations, circular financing, heavy capex and rising debt, and mounting expert warnings about excessive optimism and systemic risk.

Many dominant tech names now make up a large share of major indices, raising concerns that the AI-driven surge may be driven as much by narrative and capital flows as by underlying earnings growth. At the same time, much of the investment is tied to real enterprise adoption and infrastructure build-out, which could temper any sharp correction if monetisation gains follow through.

Regarding the IT sector in 2026, recent modest gains in tech indices reflect renewed sentiment, but earnings visibility remains mixed amid client caution and macro uncertainty. Broader focus will depend on how quickly AI spending shifts from experimentation to repeatable revenue, and how companies manage pricing and margins in a changing demand environment.

Overall, markets may see a rotation back in IT as investors seek value picks with stable earnings and growth.

What could be the hidden gem sectors in 2026?

Metals represent a significant opportunity as the global economy enters 2026. The sector is undergoing a structural transformation, shifting from cyclical commodities to critical strategic assets. The alignment of AI infrastructure, green energy transition, massive grid modernizations and government measures to protect the domestic industry has created a unique demand floor.

High metal intensity required for data centers and electric vehicle architecture ensures a long-term growth trajectory. With supply deficits emerging in key base metals and stabilized input costs, the industry is positioned for substantial value creation and sustained profitability throughout the entirety of the upcoming fiscal year.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Daily Voice: AI hype, fragile US growth, FII caution, and why metals may still shine in 2026

Daily Voice: Jimeet Modi sees strong value creation and sustained profitability in metals going into 2026

Jimeet Modi, the Founder and CEO of SAMCO Group believes metals represent a significant opportunity as the global economy enters 2026.

&quot;The sector is undergoing a structural transformation, shifting from cyclical commodities to critical strategic assets. The alignment of AI infrastructure, green energy transition, massive grid modernisations and government measures to protect the domestic industry has created a unique demand floor,&quot; he said in an interview to Moneycontrol.

With supply deficits emerging in key base metals and stabilized input costs, the metals industry is positioned for substantial value creation and sustained profitability throughout the entirety of the upcoming fiscal year, he said.

Do you expect any significant global challenges for Indian equities in 2026?

US recorded its highest unemployment rate of 4.6% in the last 4 years in the month of November. On the other hand, the US GDP grew by a healthy 4.3% for the quarter ending in September. US economy has expanded but it didn’t add many jobs. This is a fragile environment of growth which can lead to recessions going forward.

If the AI related productivity gains materialise then unemployment could shoot up and if it doesn’t, then companies who have pumped in billions of dollars for AI capex will have to take major write offs. This is the fine balancing act that the global markets will have to walk on in 2026. Developments around these changes will pose challenges not only for Indian equities but for the entire emerging markets.

Do you expect a strong Q3 FY26 earnings season?

Q3 FY26 earnings are expected to be resilient, especially in sectors benefiting from GST rationalisation and festive-season demand. Cyclical pockets like hotels, travel, and discretionary consumption tend to see operating leverage during this period.

Do you expect the government to announce additional measures in the Union Budget to sustain strong economic growth in the coming years despite global challenges?

The government's focus has changed after the General Elections in 2024. Before the elections government's focus was on capital expenditure. The government front-loaded a lot of capex mainly in the railway, infrastructure and defence space earlier.

But after the elections, the government's focus is more on populist measures. This doesn’t mean that the government will slow down its capex spree, but since the government’s kitty is full of populist promises offered during the election period, there is a limited scope for them to add significant capex from what they did last year. I would be very happy to be proven wrong here, but economics weighs heavily than expectations.

Do you see the government possibly announcing major PSU bank consolidation in 2026?

A major, broad-based PSU bank consolidation in 2026 remains unlikely. Following the completion of a significant consolidation cycle, the priority has shifted toward fortifying asset quality, governance standards, and sustainable credit growth. Any future movements will likely be selective and strategic, targeting specific operational efficiencies rather than pursuing scale for its own sake.

The current landscape suggests a focus on organic strength and capital adequacy over further structural disruption. This targeted approach ensures stability while allowing for surgical adjustments to the banking architecture as market conditions dictate throughout the upcoming fiscal year.

Do you see the new US Federal Reserve governor continuing the monetary easing cycle in 2026?

The current US Fed Governor Jerome Powell will end his term in May 2026. Kevin Hassett who is a ‘Trump man’, is the frontrunner for the Fed chair. President Trump has been yearning for bigger rate cuts ever since he became the President.

With his own man now in the Fed chair, getting more rate cuts won’t be a problem. However, even if Hassett becomes the Fed chief, he won’t be able to ignore inflation and cut rates beyond a point. Inflation has been running above the Fed’s comfort level of 2% for more than 4 years. If larger rate cuts materialise, then they would certainly add up to already sticky inflation.

Do you think FIIs still believe Indian market valuations are high, considering the inconsistency in their flows? Do you see any possibility of net inflows in 2026?

FIIs have remained cautious largely due to valuation discomfort, especially in segments where earnings growth has lagged price performance. The inconsistency in flows reflects selective allocation rather than a negative view on India as a market.

India continues to offer superior growth visibility, improving balance sheets, and macro stability compared to peers. As earnings catch up and global risk appetite stabilises, we do see the possibility of net FII inflows in 2026, particularly into large caps and sectors with strong cash flows and predictable earnings.

Do you see a bubble building up in AI stocks globally? Will the IT sector come back into focus in 2026?

There are credible indicators that the global AI stock rally is exhibiting bubble-like characteristics - skyrocketing valuations, circular financing, heavy capex and rising debt, and mounting expert warnings about excessive optimism and systemic risk.

Many dominant tech names now make up a large share of major indices, raising concerns that the AI-driven surge may be driven as much by narrative and capital flows as by underlying earnings growth. At the same time, much of the investment is tied to real enterprise adoption and infrastructure build-out, which could temper any sharp correction if monetisation gains follow through.

Regarding the IT sector in 2026, recent modest gains in tech indices reflect renewed sentiment, but earnings visibility remains mixed amid client caution and macro uncertainty. Broader focus will depend on how quickly AI spending shifts from experimentation to repeatable revenue, and how companies manage pricing and margins in a changing demand environment.

Overall, markets may see a rotation back in IT as investors seek value picks with stable earnings and growth.

What could be the hidden gem sectors in 2026?

Metals represent a significant opportunity as the global economy enters 2026. The sector is undergoing a structural transformation, shifting from cyclical commodities to critical strategic assets. The alignment of AI infrastructure, green energy transition, massive grid modernizations and government measures to protect the domestic industry has created a unique demand floor.

High metal intensity required for data centers and electric vehicle architecture ensures a long-term growth trajectory. With supply deficits emerging in key base metals and stabilized input costs, the industry is positioned for substantial value creation and sustained profitability throughout the entirety of the upcoming fiscal year.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

11 out of 17 years NIFTY 100 has given positive returns in December.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	26,596.88	26,710.32	26,778.73	26,528.47	26,415.03	26,346.62	26,233.18
Fibonacci	26,597.93	26,640.85	26,710.32	26,528.47	26,459.00	26,416.08	26,346.62
Camarilla	26,500.12	26,516.79	26,533.46	26,528.47	26,466.78	26,450.11	26,433.44

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