Indian equity markets concluded the initial trading session of the year 2026 without significant changes, with investors exercising caution due to the absence of strong domestic or global catalysts.
The Sensex saw a slight decline of 32 points, or 0.04%, settling at 85,188.6 by the session’s end. Conversely, the Nifty experienced a modest uptick of 16.95 points, or 0.06%, closing at 26,146.55.
Market analysts highlighted that the Nifty’s immediate support zone lies between 26,000–26,050, maintaining a positive short-term bias as long as this range holds. Additionally, they identified the 26,250–26,300 level as a critical supply zone, with a breakout above this range potentially leading to further gains towards 26,400–26,500.
Selling pressure was observed in select heavyweight stocks on the BSE, with ITC, Bajaj Finance, Asian Paints, and BEL ranking among the top losers. Conversely, NTPC, Eternal, Larsen & Toubro, Power Grid, and Mahindra & Mahindra supported the market by closing higher.
The broader market displayed a mixed trend, with the Nifty Midcap 100 index rising by 0.44% while the NSE Smallcap 100 experienced a slight decline of 0.05%.
In terms of sectors, FMCG stocks witnessed significant selling pressure, as evidenced by the 3.17% drop in the Nifty FMCG index, marking it as the worst-performing sector for the day. This decline was primarily fueled by a nearly 10% decrease in ITC shares following concerns over additional taxes on tobacco products effective from February 1.
Conversely, the auto sector outperformed the broader market, with the Nifty Auto index surging over 1% after various automobile manufacturers released their December 2025 sales figures. Other sectors like IT, metal, banking, and realty also closed the session on a positive note.
Market analysts noted that the markets remained range-bound on the first day of the new year, with gains in certain sectors offsetting weaknesses in FMCG stocks, resulting in minimal changes to the benchmark indices.
