Metal and Automobile Sectors Lead Indian Market Rally Amid Subdued Overall Sentiment

2026-01-04 15:23:09

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Indian equities witnessed a muted session on Tuesday, with the broader market constrained by cautious positioning as the year-end holiday season approaches. The BSE Sensex slipped marginally by 20.46 points, or 0.02%, settling at 84,675.08, oscillating between 84,470.94 and 84,806.99 throughout the session. Similarly, the National Stock Exchange’s Nifty50 declined by 3.25 points, or 0.01%, closing at 25,938.85 after touching a low of 25,878.00 and high of 25,976.75.

Despite the headline indices’ tepid performance, specific sectors delivered notable strength. Metal equities demonstrated significant resilience, with Hindustan Copper surging 9% on robust trading volumes. The metal post-earning strength extended across other commodities-linked names, as Hindalco climbed 2.1%, while Vedanta, NMDC, and SAIL rallied sharply. JSW Steel added 1.6%, and Tata Steel extended gains by more than 2%.

The automobile sector equally impressed investors, with Bajaj Auto emerging as the top gainer in the Nifty25 index, advancing 2.3%. Mahindra & Mahindra rose 2%, while Tata Motors Passenger Vehicles and other auto-linked stocks gathered momentum. This sector outperformance contrasted sharply with weakness in realty, consumer durables, and technology stocks, where Infosys, Indigo, and Asian Paints retreated 1% to 1.4%.

Financial and banking stocks showed mixed signals. Axis Bank, Bharti Airtel, State Bank of India, and Adani Ports & Special Economic Zone moved notably higher, while Bajaj Finance and HCL Technologies posted moderate declines. Shriram Finance gained approximately 2%, and Bajaj Finserv added 1.7%.

Market internals reflected the broader uncertainty. On the BSE, 2,259 stocks concluded lower, compared to 1,919 that advanced, with 181 remaining flat. Gujarat Kidney and Super Specialty Hospital’s listing debut at Rs 120.75 initially offered a 6% premium to its issue price but subsequently retreated to Rs 103.35, a decline of nearly 10% from the offer price.

On the macroeconomic front, India’s industrial production accelerated to 6.7% year-over-year growth in November, rebounding from a revised 0.5% increase in the prior month and marking the strongest expansion since October 2023. Manufacturing output expanded by 8% annually during the same period, compared to a revised 2% increase previously, signaling renewed momentum in the industrial sector heading into the new year.

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