Benchmark indices concluded the first trading session of 2026 on a flat note, with the Nifty 50 edging up marginally by 16.95 points or 0.06 per cent to close at 26,146.55, while the Sensex slipped 32 points or 0.04 per cent to settle at 85,188.60. The session was marked by extreme sectoral divergence, with the automobile index surging over 1 per cent on robust December sales data, even as the FMCG sector plunged more than 3 per cent following the imposition of fresh excise duty on cigarettes.
The trading day witnessed the narrowest intraday range since September 2025, with the Nifty moving within a mere 84-point band, reflecting subdued participation amid global market holidays and continued foreign institutional investor selling. Market breadth remained neutral with 2,211 stocks advancing against 1,952 declining on the BSE, where 4,335 stocks were actively traded. As many as 144 stocks hit their 52-week highs, while 87 touched their 52-week lows.
ITC emerged as the session’s biggest casualty, crashing 9.69 per cent to ₹363.95, wiping out massive investor wealth as cigarette stocks reacted sharply to the new excise duty announcement. Other notable losers included Tata Consumer Products, which declined 1.57 per cent to ₹1,173.30, Dr Reddy’s Laboratories down 1.53 per cent at ₹1,252, Bajaj Finance falling 1.13 per cent to ₹975.60, and ONGC slipping 1.03 per cent to ₹237.90.
“The domestic market started the year with a range-bound session and ended slightly higher amid thin trading due to global holidays and continued FII selling,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Sectorally, auto stocks gained on strong December sales, while value buying supported IT stocks. However, overall advances were capped as FMCG stocks declined following the newly imposed excise duty on cigarettes.”
The automobile sector provided the session’s bright spot, with Bajaj Auto leading the gainers’ pack with a rally of 2.59 per cent to ₹9,585. Shriram Finance advanced 2.39 per cent to ₹1,020, NTPC climbed 1.99 per cent to ₹336.10, Eicher Motors gained 1.98 per cent to ₹283.55, and Wipro rose 1.52 per cent to ₹267.30, reflecting strong investor appetite for quality stocks backed by solid fundamentals.
Broader markets outperformed the benchmark indices, with the Nifty Midcap 100 rising 0.44 per cent to 60,750.45, gaining 265.95 points, while the Nifty Smallcap 100 closed marginally lower by 0.05 per cent at 17,704.90. Among sectoral indices, Nifty Bank gained 0.22 per cent to close at 59,711.55, Nifty Financial Services advanced 0.19 per cent to 27,666.80, and Nifty Next 50 jumped 0.45 per cent to 69,675.40.
“Today, the benchmark indices witnessed a range-bound trading session,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities. “Among sectors, the Auto Index was the top gainer, rallying 1 per cent, whereas the FMCG index corrected sharply, shedding over 3 per cent.”
From a technical perspective, analysts maintained a cautiously optimistic outlook. “The zone of 26,200-26,240 will act as an important hurdle for the index,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. “Any sustainable move above the 26,240 level will lead to a sharp upside rally in the index up to the 26,400 level in the short term.”
Looking ahead, market participants expect volatility to pick up as attention shifts to the upcoming third-quarter earnings season and Union Budget expectations. “In the days ahead, Q3 earnings, budget expectations, and global cues such as the India-US trade deal and potential Fed actions are expected to guide market direction, with earnings growth likely to remain the key driver in 2026,” Nair added.
Published on January 1, 2026
