India’s equity markets opened the new year with a cautious stance, ending the first trading session of 2026 largely flat. The BSE Sensex dipped 32 points (0.04%) to 85,188.60while the NSE Nifty 50 inched up 17 points (0.06%) to 26,146.55staying comfortably above the 26,100 mark.
After a positive start, both indices remained range-bound throughout the sessionreflecting investor caution as markets assessed global and domestic factors. At mid-afternoon, the Sensex briefly gained 54 points to 85,275, while the Nifty climbed 27 points to 26,157, before consolidating near the closing levels.
Sector Performance and Market Trends
The Nifty 50 had ended 2025 on a recovery noterising 0.7% on the last trading day of the year, supported by metal stocks. The gains were bolstered by government tariffs on select steel productsaimed at curbing cheap imports and strengthening domestic production.
While blue-chip indices showed stability, small-cap stocks laggedindicating a cautious risk appetite among investors. Meanwhile, foreign institutional investors continued their selling trendoffloading shares worth ₹3,597 crore, marking a sixth consecutive session of outflows.
Key Highlights
Indices range-bound: Markets opened 2026 cautiously, reflecting a balance between domestic optimism and global uncertainty.
Sector trends: Metals led the short-term rally, while small-cap stocks underperformed.
Foreign investor sentiment: Persistent outflows suggest global investors remain watchful, even as domestic growth trends remain positive.
End-of-year performance: Nifty finished 2025 with a 10.5% gainemerging as India’s top-performing major index, though it trailed several global peers.
Market Outlook for 2026
Analysts remain bullish on India’s stock markets in 2026, citing improving corporate earnings, steady economic growth, and attractive valuations. Domestic demand is expected to stay robust, supported by government initiatives and reforms aimed at boosting industrial sectors.
Investors are approaching the new year with a measured optimismbalancing potential risks from global volatility against India’s economic resilience. With policy support, structural reforms, and strong earnings momentum, the Indian equity market is positioned for sustainable growthmaking 2026 a year of cautious but steady optimism for both domestic and foreign investors.
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