Nifty, Sensex welcome 2026 with marginal gains, session to remain muted amid global holiday

MUMBAI: The domestic benchmark indices began the first trading session of 2026 with marginal gains on Thursday, supported mainly by domestic investors, as most global markets remained shut for the New Year’s holiday. The Nifty 50 index opened at 26,173.30, gaining 43.70 points or 0.17 per cent, while the BSE Sensex started the day at 85,255.55, up 34.95 points or 0.04 per cent.

Market participants indicated that trading activity is expected to remain muted during the session due to the absence of global cues. Experts highlighted that domestic institutional investors continued to play a key role in supporting the markets.

Banking and market expert Ajay Bagga said, “Indian markets saw short covering on the last trading day of CY2025. However, FPIs remained heavy sellers in the cash market while DIIs stepped in for a record 87th successive day of net inflows. FPI positioning remains extremely short at 91 per cent short. Gift Nifty is indicating a positive open. Volumes will be low with most global markets on holiday”.

Looking ahead, expectations for 2026 remain optimistic. Bagga believes that continued stimulus through big tax cuts in the US is expected to support corporate earnings.

Japan and China are also considering large stimulus measures, while the German stimulus is likely to aid the broader European economy in 2026. At the same time, concerns remain around stretched valuations and ongoing geopolitical risks, including tensions related to China-Taiwan, Russia-Ukraine, and the US-Venezuela situation, which are largely seen as already discounted by markets.

In the broader market, indices traded with a positive bias. The Nifty 100 was up by 0.18 per cent, the Nifty Midcap 100 surged 0.23 per cent, and the Nifty Smallcap 100 gained 0.18 per cent in early trade.

Sectoral indices on the National Stock Exchange of India also opened mostly higher. The Nifty Auto index rose 0.24 per cent, Nifty IT gained 0.13 per cent, Nifty Media surged 0.19 per cent, Nifty PSU Bank advanced 0.15 per cent, Nifty Pharma moved up 0.05 per cent, and Nifty Consumer Durable climbed 0.24 per cent.

Globally, nearly all major markets remained shut for the New Year’s holiday. US markets closed lower on the final trading day of the year. The S&P 500 slipped on the last day but still ended 2025 with gains of around 16 per cent, supported by continued AI-related optimism. The Dow Jones Industrial Average and the Nasdaq Composite also posted double-digit gains for the year.

With limited global participation and steady domestic support, Indian markets are expected to remain range-bound through the session as they welcome the new year. (ANI)