Subdued start to 2026 continues as Nifty, Sensex open flat, auto stocks surge

MUMBAI: The subdued trading session continued in the Indian stock markets on Friday, with benchmark indices opening with marginal gains, reflecting a cautious stance among investors amid limited global cues as several Western markets remained closed for the New Year holiday.

At the opening bell, the Nifty 50 index started the session at 26,155.10, registering a modest gain of 8.55 points, or 0.03 per cent. Lower participation from overseas markets also resulted in muted trading volumes during the early hours.

Meanwhile, the BSE Sensex opened at 85,259.36, rising by 70.76 points, or 0.08 per cent, indicating a flat-to-positive start to the second trading session of 2026. Market experts said the cautious tone was largely due to limited international cues, with domestic factors driving early trade.

Ponmudi R, CEO of Enrich Money, said, “Indian equity markets are set to begin the second trading session of 2026 on a cautiously positive and stable note. As international markets reopen gradually, overseas cues remain limited, keeping early trade largely driven by domestic factors. With the Q3 earnings season approaching, investors are positioning for resilient results in consumer-oriented sectors, underpinned by GST rationalisation tailwinds and robust festive-season demand. Steady domestic institutional inflows continue to provide broader support, helping offset aggressive selling by foreign investors”.

In the broader market, indices traded in the green during early trade. The Nifty 100 index rose by 0.17 per cent, while the Nifty Smallcap 100 gained 0.15 per cent. The Nifty Midcap 100 also advanced by 0.31 per cent, indicating modest buying interest beyond the frontline indices.

Sectoral indices on the National Stock Exchange of India showed a mixed trend in the opening session. Nifty FMCG declined by 1.4 per cent, while Nifty IT slipped 0.19 per cent. Other major indices traded in the green, with the Nifty Auto index rising by 0.83 per cent, Nifty Metal gaining 0.59 per cent, and the PSU Bank index up by 0.55 per cent.

The auto stocks surged in opening as India’s automobile industry wrapped up calendar year 2025 on a strong footing, with most major manufacturers reporting robust year-on-year growth in December, driven by healthy consumer demand, improved rural sentiment, infrastructure spending, and on the back of a favourable macroeconomics.

Anand James, chief market strategist at Geojit Investments, said most of the previous session saw trades between the high and the close of the prior day, indicating caution but not a clear reversal. He added that with momentum missing, it may be better to play for swings as long as the market remains within the 26,330-26,100 range.

In other Asian markets, Singapore’s Straits Times Index rose by 0.44 per cent, Hong Kong’s Hang Seng Index gained more than 2 per cent, and South Korea’s KOSPI was up by more than 1 per cent. Japanese markets remained closed for New Year celebrations. (ANI)