The Indian equity markets opened the new year on a cautious note, with the Sensex settling flat in the first trading session of 2026. The Nifty 50 managed to stay above the 26,100 mark, supported by selective buying in power and infrastructure stocks. Despite global cues remaining mixed, domestic investors showed resilience, balancing profit-booking with fresh positions in defensive sectors.
Key Movers
- NTPC: Shares of NTPC advanced nearly 2%, driven by optimism around renewable energy expansion and steady demand in the power sector.
- Eternal: The stock rose 2% as investors bet on strong earnings momentum and sectoral tailwinds.
- Banking & Financials: Largely remained range-bound, reflecting cautious sentiment amid expectations of monetary policy updates later this quarter.
- IT Sector: Witnessed mild profit-booking after a strong run in December, with investors awaiting Q3 earnings guidance.
Sectoral Trends
- Power & Energy: Outperformed the broader market, with NTPC leading the charge.
- Infrastructure: Benefited from government spending expectations in the upcoming budget.
- Consumer Goods: Traded sideways as holiday demand tapered off.
- Pharma: Showed marginal gains, supported by defensive buying.
Investor Sentiment
Market participants remained watchful of global developments, including crude oil price fluctuations and U.S. Federal Reserve commentary. Domestic investors are also keenly awaiting signals from the Reserve Bank of India regarding interest rate direction. Analysts suggest that while the market may remain range-bound in the near term, selective opportunities in power, infrastructure, and options trading could provide attractive entry points.
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Conclusion
The first trading session of 2026 closed on a balanced note, with the Sensex flat and the Nifty holding firm above 26,100. Gains in NTPC and Eternal provided support, while broader indices reflected cautious optimism. As the year unfolds, investors will be closely monitoring policy cues, earnings announcements, and global developments to shape their strategies in India’s dynamic equity markets.
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