TLDR
Market Recap: January 05, 2026
On January 05, Indian equities eased on the first full trading week of 2026, with benchmarks closing lower as heavyweight selling capped the early move, while smallcaps stayed resilient. Sensex ended at 85,439.62 (-322.39, -0.38%) and Nifty 50 at 26,250.30 (-78.25, -0.30%), with Nifty Midcap 100 at 61,265.70 (-0.16%) and Nifty Smallcap 100 at 17,926.40 (+0.53%). India VIX rose to 10.02 (+0.57, +6.03%), signalling higher near-term hedging demand despite still-low absolute volatility.
Key Drivers :
IT and OMC drag: Heavyweights pulled benchmarks off highs as defensives outperformed pockets of broader market strength.
Domestic flows stayed supportive: FII -₹36.25 cr, DII +₹1,764.07 cr kept dips bid despite global uncertainty.
Global risk pulse stayed elevated: Geopolitical headlines and trade rhetoric kept risk appetite cautious into the first full week of 2026.
Today’s Top Stories:
RBI OMO buy: ₹50,000 crore purchase keeps liquidity supported; bond and rate-sensitive positioning stays active.
Axis Bank update: Advances +14% YoY, deposits +15% YoY; earnings focus shifts to margins and funding mix.
IndusInd loans: Fourth straight sequential decline keeps growth and turnaround execution under a microscope.
HDFC AMC private credit: Plans Rs 2,500 crore fund; investors assess fee upside and competitive landscape.
CSB Bank surge: Deposits +21% YoY and advances +29% YoY push the stock to record highs.
TOP STORIES
1. RBI conducts ₹50,000 crore OMO buy to steady liquidity and yields
Gemini-2.5
What happened: RBI bought government bonds via ₹50,000 crore OMO, extending its liquidity-comfort posture into early January.
Why it matters: Keeps short-end funding stress contained and supports rate-sensitive pockets as supply and volatility get priced in.
Market impact: Bond traders stayed alert on yield moves and liquidity pass-through to banks, NBFCs, and rate plays.
RBI does ₹50,000 cr OMO buy. Your take?
2. Axis Bank Q3 business update: advances +14% YoY, deposits +15% YoY
Gemini-2.5
What happened: Axis reported advances up 14% YoY and deposits up 15% YoY for the December quarter.
Why it matters: Reinforces credit-cycle momentum into results season, with focus on margins, funding mix, and asset quality.
Market impact: The update supported sentiment around large private banks as investors positioned for earnings commentary.
Axis advances +14%, deposits +15%. What matters next?
3. IndusInd Bank: loans fall for fourth straight quarter
Gemini-2.5
What happened: IndusInd reported a fourth consecutive sequential decline in loans, keeping growth concerns front and center.
Why it matters: Extends scrutiny on the bank’s recovery path, including risk costs, liability strategy, and competitive positioning.
Market impact: The stock stayed in focus for downside protection trades and relative underperformance risk versus peers.
$INDUSINDBK.NSE ( ▲ 1.65% )
IndusInd loans down again. Your view?
4. HDFC AMC moves into private credit with a Rs 2,500 crore fund plan
Gemini-2.5
What happened: HDFC AMC announced plans to enter private credit, targeting a Rs 2,500 crore fund raise.
Why it matters: Expands product breadth and fee pool beyond public markets, as investor demand shifts toward structured credit.
Market impact: Investors tracked the addressable AUM, execution timeline, and competitive intensity in India’s private credit space.
HDFC AMC entering private credit. How big is this?
5. CSB Bank hits record high after strong Q3 growth update
Gemini-2.5
What happened: CSB reported deposits +21% YoY and gross advances +29% YoY, lifting the stock to record territory.
Why it matters: Highlights strong traction in a smaller bank franchise, with the market watching deposit quality and gold-loan mix.
Market impact: The move revived momentum interest in select lenders alongside broader bank-growth optimism.
CSB deposits +21%, advances +29%. Trade view?
GYAANI HOT TAKES
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