Last Updated on January 1, 2026 9:32 pm by INDIAN AWAAZ
AMN / BIZ DESK
Indian equity benchmarks ended the first trading session of 2026 on a largely flat note, reflecting cautious investor sentiment and thin volumes. The Nifty 50 inched up 16.95 points, or 0.06 per cent, to close at 26,146.55, while the BSE Sensex slipped marginally by 32 points, or 0.04 per cent, to settle at 85,188.60. The day was characterised by sharp sectoral divergence, with gains in automobiles offset by steep losses in FMCG stocks.
Market activity remained subdued, with the Nifty recording its narrowest intraday range since September 2025, moving within an 84-point band. The muted movement was attributed to global market holidays and continued selling by foreign institutional investors (FIIs). Market breadth was neutral on the BSE, where 2,211 stocks advanced and 1,952 declined out of 4,335 actively traded shares. As many as 144 stocks hit fresh 52-week highs, while 87 touched 52-week lows.
FMCG stocks bore the brunt of selling pressure after the government announced a fresh excise duty on cigarettes. ITC plunged nearly 10 per cent, emerging as the session’s biggest loser and dragging the sector sharply lower. Other heavyweight losers included Tata Consumer Products, Dr Reddy’s Laboratories, Bajaj Finance and ONGC.
On the positive side, the automobile sector stood out as the top performer, supported by strong December sales data. Broader markets fared better than frontline indices, with midcap stocks posting modest gains, while smallcaps ended almost unchanged.
Market experts described the session as range-bound, noting that selective buying was visible in auto and IT stocks, even as overall sentiment remained cautious. From a technical standpoint, analysts highlighted the 26,200–26,240 zone as a key resistance for the Nifty in the near term.
Going forward, investors are expected to closely track third-quarter earnings, Union Budget-related expectations and global cues, which are likely to determine market direction in the coming sessions.
Sector-wise Performance
Automobile:
Top gainer of the day; index rose over 1% on strong December sales. Bajaj Auto and Eicher Motors led gains.
FMCG:
Worst-performing sector; index plunged over 3% after fresh excise duty on cigarettes. ITC and Godfrayflip saw heavy selling.
IT:
Posted modest gains, supported by value buying amid stable global cues.
Banking & Financials:
Nifty Bank and Financial Services indices ended slightly higher, showing resilience.
Energy & PSU:
Mixed performance; ONGC declined marginally amid broader market weakness.
Broader Markets:
Midcaps outperformed benchmarks, while smallcaps closed flat, indicating selective risk appetite.