Markets ended largely unchanged on the first trading day of 2026, BSE Sensex closed almost flat at 85,188.60, while the Nifty 50 managed to stay above the 26,100 mark, finishing at 26,146.55.
The markets opened the year on a positive note, with early gains supported by IT and auto stocks, which benefitted from strong sector momentum and positive investor sentiment. However, these gains were largely offset by declines in FMCG and tobacco shares, dragged down by the government’s announcement of higher excise duties on cigarettes. ITC and its peers were among the most affected, putting pressure on the FMCG index.
Midcap stocks outperformed slightly, while smallcap shares showed mixed trends. Overall, sector performance was uneven, reflecting cautious positioning by investors amid limited fresh triggers.
Market participants also remained watchful of broader economic indicators and upcoming corporate earnings, which are expected to influence short-term trends. The rupee and commodities had little impact on the session, leaving domestic sentiment as the main driver of price movements.
Investors entered 2026 with selective optimism, favoring sectors with growth potential while avoiding areas exposed to new regulatory or tax developments. Analysts said the market is likely to remain range-bound in the near term until more clarity emerges on policy direction and corporate performance.
Also Read: Sensex up 100+ points, Nifty above 26,150