Markets End Lower on January 5 as IT and Banking Stocks Drag Nifty; FMCG and Select Industrials Offer Support

Indian equity markets ended Monday’s session on a weak note, with benchmark indices slipping into the red amid sustained selling pressure in IT and banking heavyweights on January 5, 2026. Despite strong gains in select FMCG, auto, and industrial stocks, broader market sentiment remained cautious, leading to a negative close for frontline indices.

Also Read: January 5, 2026: Indian Markets Trade Range-Bound Midday as IT and Banking Weigh, Select Consumption Stocks Shine

Benchmark Indices: Nifty Slips Below Day’s Open

The Nifty 50 closed at 26,250.30, down 78.25 points or 0.30%, reversing early stability as selling intensified in the latter half of the session. The index opened at 26,333.70, touched an intraday high of 26,373.20, and fell to a low of 26,210.05, reflecting persistent intraday volatility.

Other key indices also ended lower:

• Nifty Next 50 closed almost flat at 70,413.40

• Nifty Financial Services declined 0.17% to 27,851.45

• Nifty Bank fell 0.18% to 60,044.20

Weakness in financials and technology stocks largely dictated market direction through the session.

Top Gainers: FMCG, Auto and Defence Stocks Show Resilience

Amid a weak broader market, select stocks from FMCG, auto, and defence segments posted healthy gains:

• Nestlé India rose 2.76% to ₹1,315.00, supported by steady defensive buying in FMCG counters.

• Bharat Electronics (BEL) gained 2.53% to ₹413.35, backed by strong volumes, reflecting continued interest in defence-linked stocks.

• Eicher Motors advanced 2.17% to ₹7,494.00, extending gains on positive demand expectations.

• Hindustan Unilever added 1.60% to ₹2,385.50, reinforcing FMCG’s role as a defensive play.

• Tata Steel edged up 1.56% to ₹185.73, supported by steady metal prices and strong trading volumes.

These stocks helped limit the downside, even as broader indices remained under pressure.

Top Losers: IT and Banking Heavyweights Pull Markets Down

Technology and banking stocks emerged as the biggest drags on the benchmarks:

• HDFC Bank fell 2.31% to ₹978.50, exerting significant pressure on the Nifty and Bank Nifty.

• Wipro declined 2.23% to ₹263.00

• Infosys slipped 2.21% to ₹1,604.10

• HCL Technologies dropped 2.15% to ₹1,605.00

• ONGC eased 1.41% to ₹238.05

The sell-off in IT stocks reflected ongoing concerns over global technology spending, while weakness in HDFC Bank weighed heavily on financial indices.

Market Trend: Defensive Buying Amid Risk-Off Mood

Overall market activity pointed to a risk-averse tone. Investors preferred defensive FMCG stocks and selectively accumulated autos and industrials, while cutting exposure to IT and banking stocks. Volumes were robust in several frontline counters, but broader participation remained limited.

Conclusion: January 5, 2026

Indian markets closed lower on January 5 as losses in IT and banking stocks outweighed gains in FMCG, auto, and industrial names. With global cues uncertain and the earnings season approaching, market sentiment is likely to remain cautious in the near term, with stock-specific action and sector rotation continuing to dominate trading activity.