Indian Equity Markets Trade Flat on New Year’s Day January 1, 2026; FMCG Drag Offsets Gains in Power and Infra Stocks

Indian equity markets opened the New Year on a cautious and range-bound note, with benchmark indices trading almost flat in early afternoon trade on January 1, 2026. While selective buying was seen in power, infrastructure, and capital goods stocks, heavy selling in FMCG majors weighed on overall market sentiment, keeping the indices near unchanged levels.

Also Read: NIFTY 50 Ends 2025 Firmly Above 26,100; Metals, Energy and Banks Drive Year-End Gains

Benchmark Indices Consolidate Near Record Highs

The NIFTY 50 was trading marginally higher at 26,133.00, up just 3.40 points (0.01%), reflecting indecision among investors. The index opened at 26,173.30, touched an intraday high of 26,197.55, and slipped to a low of 26,113.40, highlighting a narrow trading range.

Other key indices also showed muted movement:

• NIFTY Next 50 edged up 0.08% to 69,420.65

• NIFTY Financial Services remained nearly flat at 27,615.65

• NIFTY Bank inched up 0.10% to 59,641.45

The flat performance suggests cautious positioning as investors assess fresh global cues and domestic developments at the start of the calendar year.

Power, Infra and Capital Goods Stocks Support the Market

Buying interest was visible in select PSU, infrastructure, and capital goods stocks, lending support to the indices.

• Eternal gained 2.03% to ₹283.70, supported by healthy volumes.

• NTPC rose 1.71% to ₹335.20, tracking strength in the power sector.

• Wipro advanced 1.39% to ₹266.95, outperforming other IT peers.

• Mahindra & Mahindra (M&M) climbed 1.36% to ₹3,759.50, aided by continued optimism in the auto space.

• Larsen & Toubro (L&T) added 1.33% to ₹4,137.90, reflecting sustained interest in infrastructure and capex-driven stocks.

These gains helped offset broader weakness in defensives and financials.

FMCG and Financial Stocks Face Sharp Selling Pressure

On the downside, FMCG stocks emerged as the biggest drag, led by a steep fall in ITC.

• ITC plunged 8.95% to ₹366.95, witnessing extremely heavy volumes and high traded value, dragging the benchmark lower.

• Dr Reddy’s Laboratories declined 1.65% to ₹1,250.40.

• Bajaj Finance slipped 1.26% to ₹974.40.

• Bharat Electronics (BEL) fell 1.01% to ₹395.55.

• ONGC eased 0.99% to ₹238.01, despite strength in energy counters earlier.

The sharp correction in ITC overshadowed gains elsewhere and capped upside in the indices.

Market Breadth and Investor Sentiment

Market breadth remained mixed, with gains in power, infrastructure, and auto stocks counterbalanced by heavy losses in FMCG and select large-cap names. Investors appeared cautious, preferring selective stock-specific trades rather than broad-based exposure at the start of the new year.

Conclusion: January 1, 2026

Indian equity markets began 2026 on a subdued and consolidative note, with the NIFTY 50 hovering near the 26,130 level. While power, infrastructure, and capital goods stocks provided support, sharp selling in ITC and weakness in select financials kept indices largely flat. Going forward, market direction is likely to be influenced by global cues, sector-specific developments, and earnings expectations, with volatility expected to remain stock-driven in the near term.