‘US Markets Rally On Christmas Eve, Oil Prices Edge Higher’: Ajay Bagga Lists 3 Big Catalysts For 2026

US markets were up on the Christmas Eve on Wednesday and global markets were largely shut on Christmas. This morning, the few Asian markets that are open today are up following the US lead. The US announced strikes on ISIS in northern Nigeria. Oil is up a bit on US-Venezuela tensions. Gold, Silver, Platinum, Palladium are all up strongly in Asian trading, continuing the spectacular run of 2025 into the year end. Copper is also trading up as 2026 is being described as the Year of Copper.

Indian markets are pointing to a weak start. FPIs have been net sellers on each of the last three days. With year end volumes expected to be low, the weak momentum in Indian markets points to the lack of a Santa rally. 

Ajay Bagga On Three Big Catalysts For 2026

Wednesday saw all sectors apart from media and metals closing down. This mornings cues are also weak. The focus will now shift to three big catalysts for 2026...the Union Budget 2026 which will see a pre Budget surge in industrials, railways and defence stocks in anticipation, further FTA talks with the EU and US and finally the earnings season by mid January. Earnings are expected to show an uptick and markets will start moving in anticipation of this. For Q4 CY2025, Indian markets have been on par with EMs and DMs both despite the sharp depreciation in the Indian Rupee in December. 

Impact On Indian Stocks

The momentum is shifting upwards and the triple catalysts of Budget, FTAs and Earnings could lead to a strong Q1 CY2026 for Indian stocks. For now we wind down a ho-hum disappointingly slow year for Indian equities, with hope intact but momentum poor.

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