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Indian Markets Open 2026 with Muted Gains as Global Markets Observe Holiday

Indian benchmark indices, Sensex and Nifty, opened the first trading session of 2026 with marginal gains, supported by sustained domestic institutional investment. Trading activity is expected to remain subdued due to the New Year's holiday shutting most major global markets. Experts note that while foreign portfolio investors have been net sellers, domestic investors have provided consistent support for a record 87 consecutive days. The broader market and most sectoral indices also traded positively, with an optimistic outlook for 2026 hinging on anticipated global stimulus measures.

Key Points: Sensex, Nifty Start 2026 with Gains; Global Holiday Mutes Trade

  • Marginal gains on New Year's opening
  • DIIs provide record support amid FPI selling
  • Global markets shut, volumes low
  • Optimistic 2026 outlook with global stimulus
3 min read

Nifty, Sensex welcome 2026 with marginal gains, session to remain muted amid global holiday

Indian stock markets began 2026 with marginal gains led by domestic investors. Trading is expected to remain muted with global markets closed for New Year's.

"FPIs remained heavy sellers... while DIIs stepped in for a record 87th successive day of net inflows. - Ajay Bagga, Banking & Market Expert"

Mumbai, January 1

The domestic benchmark indices began the first trading session of 2026 with marginal gains on Thursday, supported mainly by domestic investors, as most global markets remained shut for the New Year's holiday.

The Nifty 50 index opened at 26,173.30, gaining 43.70 points or 0.17 per cent, while the BSE Sensex started the day at 85,255.55, up 34.95 points or 0.04 per cent.

Market participants indicated that trading activity is expected to remain muted during the session due to the absence of global cues.

Experts highlighted that domestic institutional investors continued to play a key role in supporting the markets.

Ajay Bagga, Banking and Market Expert, told ANI, "Indian markets saw short covering on the last trading day of CY2025. However, FPIs remained heavy sellers in the cash market while DIIs stepped in for a record 87th successive day of net inflows. FPI positioning remains extremely short at 91 per cent short. Gift Nifty is indicating a positive open. Volumes will be low with most global markets on holiday".

Looking ahead, expectations for 2026 remain optimistic. Bagga believes that continued stimulus through big tax cuts in the US is expected to support corporate earnings.

Japan and China are also considering large stimulus measures, while the German stimulus is likely to aid the broader European economy in 2026. At the same time, concerns remain around stretched valuations and ongoing geopolitical risks, including tensions related to China-Taiwan, Russia-Ukraine, and the US-Venezuela situation, which are largely seen as already discounted by markets.

In the broader market, indices traded with a positive bias. The Nifty 100 was up by 0.18 per cent, the Nifty Midcap 100 surged 0.23 per cent, and the Nifty Smallcap 100 gained 0.18 per cent in early trade.

Sectoral indices on the National Stock Exchange of India also opened mostly higher. The Nifty Auto index rose 0.24 per cent, Nifty IT gained 0.13 per cent, Nifty Media surged 0.19 per cent, Nifty PSU Bank advanced 0.15 per cent, Nifty Pharma moved up 0.05 per cent, and Nifty Consumer Durable climbed 0.24 per cent.

Globally, nearly all major markets remained shut for the New Year's holiday. US markets closed lower on the final trading day of the year. The S&P 500 slipped on the last day but still ended 2025 with gains of around 16 per cent, supported by continued AI-related optimism. The Dow Jones Industrial Average and the Nasdaq Composite also posted double-digit gains for the year.

With limited global participation and steady domestic support, Indian markets are expected to remain range-bound through the session as they welcome the new year.

- ANI

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Reader Comments

R
Rohit P
Midcap and Smallcap indices gaining more than Nifty is interesting. Seems like the broader market rally might continue. But valuations are stretched, as the article says. Need to be very selective with new investments this year.
A
Ajay M
While the marginal gain is okay, I'm a bit concerned. The article mentions FPIs are 91% short! That's a huge bearish bet against India. Our markets are rising mainly on domestic money. What happens when that slows down? We need to address what's making foreign investors so nervous.
S
Sarah B
Working in the IT sector, it's reassuring to see Nifty IT in the green. Global stimulus, especially in the US, should help our export-oriented companies. A stable start is better than volatility on the first day.
K
Karthik V
Auto and Consumer Durables up. Good signs for domestic consumption. Hope the budget next month gives more impetus to manufacturing and puts more money in the hands of the middle class. That's the real fuel for the economy.
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Nikhil C
"Geopolitical risks are largely seen as already discounted by markets." I find this line a bit too optimistic. A major flare-up in Taiwan or with our northern neighbor can't be "discounted" so easily. Investors should keep some powder dry for corrections.

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