The Indian equity markets kicked off the first trading session of 2026 on a cautious and subdued note, reflecting a wait-and-watch sentiment among investors. Both benchmark indices, the Sensex and the Nifty 50, struggled for direction in early trade on Thursday, January 2, 2026, after the long New Year holiday.
Benchmark Indices Show Muted Opening
At the opening bell, the S&P BSE Sensex was trading marginally lower, down by 35 points at 79,410. Similarly, the broader Nifty 50 index on the National Stock Exchange (NSE) was almost flat, inching up by a mere 5 points to 23,970. This tepid start followed a record-breaking rally in the previous year, prompting investors to book profits in select heavyweights.
The market breadth was mixed, indicating a stock-specific movement. Sectoral indices presented a divergent picture. While the Nifty Bank and Financial Services indices showed some resilience, the Nifty FMCG and Auto indices faced selling pressure, largely dragged down by their major constituents.
Key Stocks in the Spotlight: Losers and Gainers
Several prominent stocks were in focus during the early trading hours, with a clear trend of profit-booking visible in recent outperformers.
ITC emerged as the biggest loser among the Nifty constituents. The FMCG giant's shares witnessed significant selling pressure, trading lower and pulling down the Nifty FMCG index. Analysts attributed this move to profit-taking after a strong performance and possibly due to sector rotation at the start of the new year.
Other major stocks that faced the heat included Titan Company and Maruti Suzuki India. Both stocks, which have seen substantial runs, opened in the red, indicating that investors were cashing in on gains. Bharat Electronics Ltd (BEL) and Mahindra & Mahindra (M&M) were also among the stocks that traders were closely monitoring for price action and momentum cues.
On the flip side, some stocks managed to hold ground or trade in positive territory. Power Grid Corporation and Axis Bank were among the notable gainers in the early session, providing some support to the benchmarks. The performance of these stocks helped offset some of the losses from the laggards.
Market Sentiment and Expert Outlook
The flat opening on January 2, 2026, suggests that the market is taking a brief pause to consolidate after the historic highs achieved in 2025. Traders are likely reassessing their positions and looking for fresh triggers for the next leg of the rally. Global cues were relatively stable, allowing domestic factors to drive the sentiment.
Market experts suggest that the initial sessions of the new year are often characterized by portfolio rebalancing and adjustments. The movement in stocks like ITC and Titan is seen more as a technical correction rather than a change in the fundamental outlook. Investors are advised to watch for key support and resistance levels for the Nifty, with immediate support pegged around 23,800 and resistance near the 24,100 mark.
The focus now shifts to upcoming domestic macroeconomic data, corporate earnings season expected later in the month, and global economic indicators for further direction. The overall long-term structure of the market remains intact, but short-term volatility due to profit-booking in overbought stocks is anticipated to continue.
