Markets begin the year on flat note

Mumbai:Equity benchmark indices Sensex and Nifty ended almost flat on the first trading session of 2026, as massive selling in ITC stock and foreign fund outflows amid thin investor participation diminished the initial enthusiasm.

A selective buying trend on some counters supported the equity market, but a weak rupee against the dollar impacted sentiments, traders said. In a see-saw trade, the 30-share BSE Sensex dipped 32 points or 0.04 per cent to settle at 85,188.60 on Thursday due to fag-end selling. During the day, it hit a high of 85,451.70 and a low of 85,101.52, fluctuating 350.18 points. The 50-share NSE Nifty went up marginally by 16.95 points or 0.06 per cent to end at 26,146.55.

"This was the smallest daily trading range recorded since September 17, 2025, reflecting a phase of indecision and limited participation from both buyers and sellers," Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said.

From the 30-Sensex firms, ITC tanked 9.69 per cent, following Bajaj Finance, Asian Paints, Bharat Electronics and ICICI Bank. In contrast, NTPC, Eternal, Mahindra & Mahindra, Larsen & Toubro and Power Grid were among the gainers.

"Sectorally, auto stocks gained on strong December sales, while value buying supported IT stocks. "However, overall advances were capped as FMCG stocks declined following the newly imposed excise duty on cigarettes," Vinod Nair, Head of Research, Geojit Investments Limited, said. Shares of cigarette and tobacco product makers tumbled after the government notified February 1 as the date from which additional excise duty on tobacco products, and a health cess on pan masala will be levied. Godfrey Phillips India plummeted 17.09 per cent.

"Indian equity markets started the first trading session of 2026 on a mixed and cautious note, with indices largely consolidating at higher levels amid selective buying and profit-booking.