The Indian Stock Market entered 2026 with remarkable momentum, as the Nifty scaled fresh all-time highs amid broad-based buying interest. Market participants are now preparing for a data-intensive week that will feature the commencement of the Q3 earnings season and crucial macroeconomic indicators both domestically and globally.

Market Performance Overview

Last week witnessed strong performance across major indices, with sustained buying support from domestic institutional investors. The market's upward trajectory reflects robust underlying fundamentals and positive investor sentiment.

The 50-share Nifty's achievement of hitting its all-time peak of 26,340 on Friday marked a significant milestone, demonstrating the market's resilience and growth momentum as it enters the new year.

Key Market Drivers This Week

Analysts identify several critical factors that will influence market direction in the coming week. Ajit Mishra, SVP Research at Religare Broking Ltd, highlighted that markets are entering a data-heavy period coinciding with the early phase of earnings season.

Domestic Focus Areas:

• Final readings of HSBC Services PMI
• Composite PMI data for business momentum insights
• Employment trend indicators
• Q3 earnings season commencement

Global Watch Points:

• US macroeconomic data releases
• China's economic indicators
• Non-farm payrolls and unemployment data
• Federal Reserve rate path expectations

Q3 Earnings Season Begins

The market's attention is set to shift toward corporate earnings, with the Q3 season officially beginning on January 12. Major index heavyweights will kick off the reporting cycle, providing crucial insights into business performance and future outlook.

Ponmudi R, CEO of Enrich Money, noted that traders are likely to build positions selectively ahead of results from key index constituents, suggesting strategic positioning based on earnings expectations.

Investment Flows and Currency Factors

Foreign Institutional Investors (FIIs) demonstrated renewed interest on Friday, purchasing equities worth ₹289.80 crore according to exchange data. This shift in FII sentiment, combined with continued domestic institutional support, has contributed to the market's positive momentum.

Ravi Singh, Chief Research Officer at Master Capital Services Ltd, emphasized that while global factors including US interest rates and geopolitical developments will influence short-term sentiment, domestic fundamentals are increasingly becoming the primary driver for Indian markets.

Key Monitoring Parameters:

• Rupee movement against the US dollar
• Brent crude oil benchmark trends
• Government spending patterns
• Consumption trend indicators

Market Outlook and Technical Perspective

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, observed that the current momentum suggests a decisive break from January's historical trend of consolidation or bearishness. The market structure remains firm, supported by robust underlying factors and positive sentiment.

Vinod Nair, Head of Research at Geojit Investments Ltd, expects overall sentiment to stay constructive, though markets may move within a steady range as participants await clearer earnings-led triggers and potential clarity on trade developments. The combination of domestic growth momentum and global economic health indicators will continue shaping investor sentiment as 2026 unfolds.

The government has approved 22 investment proposals under the Electronics Components Manufacturing Scheme (ECMS), marking a significant boost to India's electronics manufacturing sector. The approvals include major industry players such as Foxconn, Dixon Technologies, Tata Electronics, and Samsung, representing the third set of clearances under the ambitious scheme.

Major Investment and Production Targets

The approved projects demonstrate substantial scale and economic impact across multiple parameters:

The projects span across Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan, reflecting the government's focus on geographically balanced industrial growth.

Apple Ecosystem Vendors Drive Growth

A significant portion of the investments and employment opportunities will come from Apple's new vendors joining its global supply chain. Five key vendors from Apple's ecosystem have received approval: Motherson Electronic Components, Tata Electronics, ATL Battery Technology India, Foxconn (Yuzhan Tech India), and Hindalco Industries. These companies will export to Apple's international locations, strengthening India's position in global electronics supply chains.

Investment Distribution Across Categories

The investment allocation reveals strategic focus areas for electronics manufacturing:

The approved products include 5 bare components (PCBs, capacitors, connectors, enclosures, Li-ion cells), 3 sub-assemblies (camera modules, display modules, optical transceivers), and 3 supply chain items (aluminium extrusion, anode material, laminate).

Key Company Projects and Employment

Major companies have committed to substantial manufacturing operations and job creation. Foxconn's Yuzhan Tech India project in Tamil Nadu will manufacture mobile phone enclosures, generating employment for over 16,200 people. Tata Electronics will establish mobile phone enclosure manufacturing in Tamil Nadu, creating 1,500 additional jobs.

Other approved companies include Samsung Display Noida, Dixon's subsidiaries (Kushan Q Tech Microelectronics India and Dixon Electroconnect), TDK India, BPL Limited, Wipro Hydraulics, and AT&S India, among others.

Government's Strategic Vision

Union IT Minister Ashwini Vaishnaw emphasized the Centre's focus on big reforms, enabling policies, and efficient project execution. The minister encouraged industry players to prioritize design teams and adopt Six Sigma practices for global competitiveness. These approvals, combined with previous ECMS tranches and ongoing semiconductor initiatives, underscore India's determination to become a major hub in global electronics supply chains.

The scheme targets cross-sectoral applications including mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware, positioning India as a comprehensive electronics manufacturing destination.