Equities End Steady in First Session of 2026 as Auto Gains Offset FMCG Drag

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

January 1, 2026 at 11:55 AM IST

Indian equity benchmarks ended largely unchanged in the first trading session of 2026, as gains in auto stocks offset sharp losses in cigarette makers following the government’s announcement of a higher excise duty on cigarettes effective February. The Nifty50 edged up 0.06% to 26,146.55, while the BSE Sensex slipped 0.04% to 85,188.60, amid a lack of major domestic or global triggers and thin participation. Twelve of the 16 major sectors closed higher, with the auto index rising 1% on improved dealer sales in December, aided by tax cuts.

Sectoral performance, however, was mixed. Nifty FMCG emerged as the worst performer, falling 3.17%, dragged down by a steep sell-off in cigarette stocks. ITC tumbled 9.7% and Godfrey Phillips plunged 17.1% after the tax hike announcement, with analysts flagging potential pressure on volumes and a renewed risk of market-share losses to illicit trade. On the Sensex, ITC, Bajaj Finance, Asian Paints, Bharat Electronics and ICICI Bank led declines, while broader markets were subdued, with small caps down 0.1% and midcaps outperforming, up 0.4%.

Top Movers of the Day
Shares of Larsen & Toubro, Hindalco, TVS Motor, Titan, Shriram Finance and Bharat Petroleum hit fresh all-time highs in intraday trade on the BSE, supported by broad-based buying in large-cap stocks. Reliance Industries, Bajaj Auto and Indus Towers also remained in focus after touching their respective 52-week highs, rising as much as 5% during the session.

Cupid Ltd extended its strong run, hitting a new record high of ₹524.95 on the NSE and marking a 15-session winning streak, during which the stock has gained nearly 27%.

Karur Vysya Bank shares climbed nearly 4% to a fresh peak after the lender reported healthy growth in its business metrics for the December 2025 quarter.

United Spirits shares slipped nearly 4% after the company announced the resignation of its vice president – commercial finance, effective December 31, 2025.

Birla Corporation, rose over 2% after providing an update on its ESG score assigned by SES ESG Research.

Blue Dart Express surged more than 9% after tax authorities sharply reduced a GST demand on its aviation arm.

Vodafone Idea jumped up to 10% following a settlement with Vodafone Group on long-pending contingent liabilities related to the 2017 merger.

SML Mahindra hit a 5% upper circuit after reporting a 67% year-on-year increase in vehicle sales for December.

Steel Strips Wheels gained nearly 8% after posting its highest-ever monthly sales on strong domestic demand.

Piccadilly Agro Industries rallied close to 13% after commencing commercial production at its Chhattisgarh unit, expanding capacity to 200 kilolitres per day.

Futures & Options
Nifty January 2026 futures settled at 26,291, trading at a premium of 144.35 points to the Nifty 50’s cash close of 26,146.55, which edged up 16.95 points or 0.06% on the day. Volatility eased, with the India VIX slipping 3.06% to 9.19, reflecting subdued risk appetite in the opening session of the year. ITC, Vodafone Idea and Indus Towers were the most actively traded stock futures in the F&O segment, while January 2026 derivative contracts are scheduled to expire on 27 January 2026.

Bonds
Government bond yields edged higher on the first trading day of 2026 as supply concerns weighed on sentiment ahead of the central government’s debt sale scheduled for Friday and expectations of a heavy state borrowing calendar for the January–March quarter. The benchmark 10-year yield ended mostly flat at 6.5818% on Thursday, compared with 6.5881% on Wednesday.

Forex
The rupee began 2026 on a softer note, slipping marginally as dollar demand from corporates weighed on the currency amid thin volumes during the first trading session of the New Year. The rupee opened weaker at 89.9525 per US dollar and traded in a narrow range before settling 0.1% lower at 89.97, compared with Wednesday’s close of 89.87. With New Year holidays keeping global markets quiet, routine demand–supply flows dominated price action, echoing a broader 2025 pattern in which persistent dollar demand continued to cap any meaningful appreciation in the rupee.

Crypto
Crypto markets pressure was evident across altcoins, with XRP, Solana, Tron, Dogecoin, Cardano and Hyper liquid declining more than 5% during the period, while BNB bucked the trend with a modest 0.25% gain. Bitcoin remained range-bound between $87,500 and $88,000 as consolidation persisted in the digital asset market, trading near $87,440 today. Over the past 24 hours, Bitcoin slipped 0.90%, while Ethereum edged up 0.14%, reflecting mixed sentiment among major cryptocurrencies.

US Stock Futures
US stock futures traded mixed as markets entered the first trading sessions of the new year, reflecting a blend of cautious profit-taking and optimism after a strong 2025 performance. Futures linked to the S&P 500 and Nasdaq edged slightly lower amid thin holiday liquidity, while Dow Jones futures held relatively steady, suggesting selective positioning rather than broad risk aversion.

US Treasury Notes will not trade today, January 1, 2026, due to the US bond market closure for New Year's Day.

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