Indian markets begin 2026 on a firm note, Nifty inches towards 26,200

Indian equity markets opened the first trading session of 2026 on a positive note on Thursday, 1 January 2026 supported by improving domestic technical indicators and steady buying by domestic institutional investors, even as global cues remained mixed and major international markets stayed shut for the New Year holiday.

The benchmark Nifty 50 advanced 0.17 per cent in early trade to hover near the 26,200 mark, while the Sensex was marginally higher, gaining 0.04 per cent. Broader market indices were largely flat, with both midcap and smallcap stocks showing little movement in the opening hours.

Sectoral trends were mixed. Telecom stocks led the gains, rising about 1 per cent, while media and auto shares also traded higher. FMCG stocks came under pressure, slipping around 1 per cent, with pharma shares also in the red. On the NSE, a majority of sectoral indices were trading in positive territory.

Market participants are expected to track global equity trends, crude oil prices and institutional fund flows for direction through the session, analysts said.

On the institutional side, foreign institutional investors continued to pare their exposure, selling shares worth around Rs 3,600 crore on 31 December, marking their fifth straight session of net outflows.

Domestic institutional investors, however, stepped in with purchases of nearly Rs 6,800 crore, helping to cushion the impact of foreign selling and lending stability to the market.

Analysts advised investors to remain selective amid ongoing global uncertainty and market volatility. Accumulating quality stocks on declines with strict risk management was seen as a prudent strategy, while fresh long positions may require a sustained breakout above the 26,300 level on the Nifty.

In the currency market, the rupee opened marginally weaker, slipping by one paise to 89.88 against the US dollar.

Separately, Indian stock exchanges released the official trading holiday calendar for 2026, providing clarity on non-trading days across the cash, derivatives and currency segments.

Meanwhile, most major global markets, including those in China, Hong Kong, Japan, Singapore, Europe, the UK and the US, remained closed on Thursday for New Year’s Day. Markets in China and Japan are also set to observe an extended holiday, staying shut on Friday.

With IANS inputs