The New Year brought a smile in the markets as the BSE Sensex rose around 200 points in early trade, while the NSE Nifty 50 moved above the 26,150 level, supported by buying in auto, IT and select banking stocks.
Among the key gainers, auto stocks advanced on expectations of stable demand and improving margins. Information technology shares also edged higher, aided by bargain buying after recent corrections and hopes of steady global tech spending. Select private sector banks added to the upside, helping benchmarks maintain early gains.
However, the broader market showed mixed trends. FMCG stocks were among the top losers, facing selling pressure amid valuation concerns and muted near-term growth outlook. Metal stocks also traded lower after recent gains, as investors booked profits. Mid-cap and small-cap stocks showed a cautious trend, with limited participation.
Market sentiment remained subdued as most global markets were closed for New Year holidays, leading to lower trading volumes. Investors also remained watchful ahead of key global cues, including signals on US interest rates, geopolitical developments and updates on global economic growth.
Analysts said the positive opening was an extension of the recovery seen in the final sessions of 2025. However, they cautioned that markets may remain range-bound in the near term due to mixed global signals and stock-specific action.
The Indian rupee traded slightly weaker against the US dollar in early trade, adding to the cautious tone. Going ahead, investors are expected to focus on corporate earnings, macroeconomic data and global cues to assess market direction in the opening weeks of 2026.
Also Read: Sensex climbs 546 points, Nifty tops 26,100 in 2025 finale