The Indian equity markets extended their subdued start to the new year on Friday, January 2, 2026, with benchmark indices opening almost flat. The cautious opening reflected a lack of strong directional cues from global markets, many of which remained shut for the New Year holiday.
Benchmarks Show Marginal Gains in Early Trade
At the opening bell, the Nifty 50 index commenced trading at 26,155.10, marking a minor gain of 8.55 points or 0.03%. The BSE Sensex opened at 85,259.36, rising by 70.76 points or 0.08%. This indicated a largely flat-to-positive start for the second trading day of the calendar year.
Market analysts attributed the tentative sentiment to thin trading activity and limited participation from foreign investors due to holidays in key Western markets. Domestic factors were the primary drivers of early trade movements.
Sectoral Performance: Auto Stocks in the Fast Lane
Sectoral indices on the National Stock Exchange (NSE) presented a mixed picture. The standout performer was the Nifty Auto index, which jumped 0.83% in early trade. This surge was fueled by robust year-on-year sales growth reported by major automakers for December 2025, supported by healthy consumer demand and improved rural sentiment.
Other sectors trading in positive territory included Nifty Metal (up 0.59%) and the PSU Bank index (up 0.55%). Conversely, the Nifty FMCG index declined by 1.4%, and the Nifty IT sector slipped 0.19%.
In the broader market, indices like the Nifty Midcap 100 and Nifty Smallcap 100 also traded with modest gains, indicating selective buying interest beyond the heavyweight stocks.
Expert Views and Market Outlook
Ponmudi R, CEO of Enrich Money, noted that markets began on a "cautiously positive and stable note." He highlighted that with the Q3 earnings season approaching, investors are positioning for resilient results in consumer-oriented sectors, supported by GST rationalisation benefits and strong festive demand.
Anand James, Chief Market Strategist at Geojit Investments, pointed to the lack of clear momentum. He suggested that as long as the Nifty remains within the 26,100 to 26,330 range, traders might look for swing opportunities rather than trending moves.
While Indian markets were subdued, other open Asian markets like Hong Kong's Hang Seng and South Korea's KOSPI posted significant gains of over 2% and 1%, respectively.
