Indian Markets Open 2026 on a Strong Note as IT Drags, Select Stocks Show Strength

Indian equity markets began the first full trading week of 2026 on a mixed and cautious footing on Monday, January 5. While frontline indices traded marginally higher, sectoral divergences remained sharp, with information technology stocks under pressure and select auto, metal, and industrial names providing support. Investor sentiment reflected a wait-and-watch approach amid global cues and stock-specific triggers.

Also Read: Indian Equity Markets End Strong as Nifty Climbs Above 26,300; PSU, Metals and Banks Lead Rally

Benchmark Indices: Modest Gains, Narrow Range

The Nifty 50 traded slightly higher at 26,352.75, up 24.20 points (0.09%), moving in a narrow intraday range. The index opened at 26,333.70, touched a high of 26,360.55, and slipped to a low of 26,263.60, indicating limited directional conviction.

Broader market indicators showed mild optimism:

• Nifty Next 50 rose 0.13% to 70,511.60

• Nifty Financial Services gained 0.22% to 27,961.50

• Nifty Bank outperformed, climbing 0.28% to 60,319.25

The marginal uptick in banking and financial stocks helped cushion the impact of weakness in IT counters.

Top Gainers: Industrials, Auto and Metals Lead

Buying interest was visible in select stocks across industrials, automobiles, and metals:

• Bharat Electronics (BEL) surged 3.49% to ₹417.20, supported by strong volumes, reflecting continued optimism around defence and electronics manufacturing.

• Eicher Motors advanced 1.89% to ₹7,473.00, extending gains amid sustained demand expectations in the premium two-wheeler segment.

• Maruti Suzuki rose 1.85% to ₹17,274.00, benefiting from positive outlook on passenger vehicle sales.

• Asian Paints added 1.63% to ₹2,817.70, indicating steady investor confidence in consumption-led plays.

• Tata Steel gained 1.56% to ₹185.73, tracking strength in metal stocks and stable global steel prices.

These gains highlighted selective risk-taking by investors in fundamentally strong names.

Top Losers: IT Stocks Under Pressure

The technology sector weighed heavily on the markets, with major IT stocks witnessing selling pressure:

• Infosys declined 2.83% to ₹1,594.00

• HCL Technologies fell 2.43% to ₹1,600.30

• Wipro slipped 2.06% to ₹263.45

• Tech Mahindra dropped 1.35% to ₹1,590.20

Additionally, ONGC eased 1.97% to ₹236.70, reflecting weakness in select energy stocks. The decline in IT shares suggests concerns over global demand outlook and cautious positioning ahead of earnings season.

Market Mood: Selective Buying, Sector Rotation: January 5, 2026

Overall, market participants appeared selective, rotating capital into autos, defence, metals, and financials, while trimming exposure to IT. Volumes remained stock-specific rather than broad-based, reinforcing the cautious undertone at the start of the year.

Conclusion

Indian markets kicked off 2026 with modest gains but clear sectoral divergence. While banking, auto, and industrial stocks provided support, persistent weakness in IT stocks capped broader upside. Going ahead, market direction is likely to be guided by global cues, upcoming corporate earnings, and macroeconomic data, with investors expected to remain selective in the near term.