Did Sensex and Nifty Close Flat on the 1st Trading Day of 2026?
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Synopsis
On January 1, 2026, the Indian equity markets ended on a flat note, with the Sensex dipping slightly while the Nifty edged up. Analysts highlight the ongoing cautious sentiment among investors due to the absence of strong market triggers. Read on for a detailed analysis of market movements and sector performances.
Key Takeaways
- The Sensex closed at 85,188.6, down 32 points.
- The Nifty finished at 26,146.55, up 16.95 points.
- Market sentiment remains cautious due to the absence of strong triggers.
- FMCG stocks were the worst performers, with a drop of 3.17 percent.
- The auto sector outperformed, rising by over 1 percent.
Mumbai, Jan 1 (NationPress) - The Indian equity markets concluded the inaugural trading session for the year 2026 on a neutral note, as investors exercised caution amid the lack of significant domestic or international catalysts.
At the end of trading, the Sensex experienced a slight drop of 32 points, equivalent to 0.04 percent, finishing at 85,188.6.
Conversely, the Nifty saw a modest increase of 16.95 points, or 0.06 percent, closing at 26,146.55.
“For the Nifty, the 26,000-26,050 range continues to function as an immediate support zone; as long as this level is maintained, the short-term outlook remains positive,” an analyst noted.
On the upside, the 26,250-26,300 area is identified as a significant resistance zone. A decisive breakout and sustained movement above this range could pave the way toward 26,400-26,500, according to market analysts.
There was notable selling pressure in select heavyweight stocks on the BSE, with ITC, Bajaj Finance, Asian Paints, and BEL among the top decliners.
In contrast, shares of NTPC, Eternal, Larsen & Toubro, Power Grid, and Mahindra & Mahindra supported the market, closing higher.
The broader market displayed a mixed performance; the Nifty Midcap 100 index rose by 0.44 percent, while the NSE Smallcap 100 declined marginally by 0.05 percent.
Sectorally, FMCG stocks experienced significant selling, with the Nifty FMCG index dropping 3.17 percent, marking it as the day's worst-performing sector.
This decline was primarily driven by a nearly 10 percent drop in ITC shares, as investors responded to concerns regarding the government's decision to implement additional taxes on tobacco products starting February 1.
Conversely, the auto sector outperformed the broader market, with the Nifty Auto index increasing by over 1 percent following reports from several automobile manufacturers regarding their sales figures for December 2025.
Other sectors like IT, metal, banking, and realty also ended the session positively.
Analysts indicated that the markets remained range-bound on the first day of the new year, with gains in certain sectors countering the weakness in FMCG stocks, resulting in benchmark indices remaining largely unchanged.
Point of View
The performance of the Indian equity markets on the first trading day of 2026 reflects a cautious optimism among investors. The mixed sectoral performances indicate a balancing act where gains in certain areas offset declines in others, showcasing the resilience of the market amid uncertainties.
NationPress
07/01/2026
Frequently Asked Questions
What were the closing figures for Sensex and Nifty on January 1, 2026?
The Sensex closed at 85,188.6, down 32 points, while the Nifty finished at 26,146.55, up 16.95 points.
Which sectors saw significant movements during the trading session?
The FMCG sector experienced notable declines, while the auto sector outperformed the market.
What support and resistance levels are analysts focusing on for the Nifty?
Analysts are focusing on the 26,000-26,050 range as support and the 26,250-26,300 range as a resistance zone.
