Indian benchmark indices, the Sensex and Nifty 50, are anticipated to begin Friday's trading session on a quiet note. The muted sentiment follows a holiday-thinned global session and a lack of fresh domestic triggers, with investors focusing on stock-specific actions.
Market Outlook and Previous Session Snapshot
The first trading day of 2026 ended with mixed results for the indices. The Sensex dipped 32 points, or 0.04%, to close at 85,188.60. In contrast, the Nifty 50 managed a gain of 17 points, or 0.06%, settling at 26,146.55. Analysts note that the market is likely to remain range-bound, driven by individual stock performances rather than broad sectoral moves until new catalysts emerge.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "The domestic market started the year with a range‑bound session... Sectorally, auto stocks gained on strong December sales, while value buying supported IT stocks. However, overall advances were capped as FMCG stocks declined." He identified the upcoming Q3 earnings season, budget expectations, and global developments as key factors for future direction.
Key Global and Domestic Cues for Traders
Early indicators point to a cautious start. The Gift Nifty was trading at 26,314, up 23 points or 0.09% from the previous close of Nifty futures, suggesting a flat-to-positive opening for the domestic market.
Globally, trading activity is expected to be light. Several Asian markets, including Japan and China, remained shut for holidays, while South Korea had a delayed opening. Wall Street was closed on New Year's Day. In the currency market, the US dollar started 2026 on a softer footing, with the yen steadying near 156.74 per dollar.
Commodities and Geopolitical Developments
Precious metals saw a rebound in early trading. Spot gold rose 0.8% to $4,346.69 per ounce, while spot silver jumped 2.1% to $72.75 per ounce. Oil prices held steady after a sharp annual decline, with Brent crude below $61 a barrel. Investors are awaiting an OPEC+ meeting scheduled for January 4.
In a significant geopolitical move, the Trump administration imposed new sanctions on Venezuela's oil trade. The US Treasury targeted four firms based in Hong Kong and mainland China, along with four associated oil tankers, intensifying pressure on Caracas's exports.
Moving forward, the Indian market's trajectory will hinge heavily on corporate earnings for the October-December quarter and pre-budget expectations. With continued foreign institutional investor (FII) selling and a lack of immediate global triggers, stock-specific movements are likely to dominate trading in the near term.
