Markets began 2026 on a muted note with indices little changed, as low holiday volumes and mixed sectoral trends defined the session.
Key Themes & Picks
A flat-to-positive open is indicated for the next session.
Auto and banking sectors lead on strong sales and credit growth.
FMCG faces pressure from tobacco excise hikes impacting ITC.
Key picks: Canara Bank, Nykaa, and select auto ancillaries.
Subdued activity persists amid a constructive broader 2026 outlook.
Indian equity markets started 2026 on a muted note, with the Nifty 50 closing marginally higher at 26,146.55 (up 0.06%) and the Sensex at 85,188.60 (down 0.04%) amid low volumes due to global New Year holidays. Overnight, US futures edged higher, while Asian markets opened cautiously. Gift Nifty futures traded around 26,313 early today, indicating a flat-to-positive open with potential gains of 20-50 points for the Nifty.
Key themes include strong December auto sales (TVS up 50% YoY, Hero MotoCorp up 40%), robust banking credit growth, and infrastructure orders, offset by FMCG pressure from tobacco excise hikes impacting ITC. Activity remains subdued post-holidays, with ~20-25 fresh or highlighted recommendations aggregated today, mainly from domestic sources like Bajaj Broking and Prabhudas Lilladher. Global updates are limited, but broader 2026 outlooks from Goldman Sachs and Morgan Stanley remain constructive.
Standout calls: Bajaj Broking on Canara Bank and Nykaa; Prabhudas Lilladher's intraday picks on Finolex Industries, Astral, and Samvardhana Motherson; positive auto momentum on TVS and Hero.
Analysts adopt a cautiously positive view, expecting Nifty consolidation around 26,000-26,200 with upside potential on breakout. Support from auto sales and banking data counters thin volumes. Broader markets show resilience.
| Index | Recommendation | Target/Range | Key Driver | Source |
|---|---|---|---|---|
| Nifty 50 | Range-bound with upward bias | 25,700–26,300 | Auto sales strength, banking growth | Bajaj Broking Times of India |
| Sensex | Flat-positive | 85,000-86,000 | Selective buying in large-caps | Livemint Nifty Expectations |
| Bank Nifty | Bullish | Near 60,000 | Credit expansion | General brokerage consensus |
Low India VIX supports muted volatility, with focus on FII returns post-holidays.
PSU banks gain traction on growth visibility.
E-commerce and festive demand drive picks.
Technical breakouts highlighted for intraday.
Strong December sales fuel optimism.
Global brokerages maintain bullish 2026 views: Goldman Sachs targets Nifty at 29,000 (overweight upgrade); Morgan Stanley sees earnings-led recovery with domestic demand themes (autos, financials, consumer). HSBC also overweight on macro tailwinds. Thematic focus: EVs (TVS, Hero gains), banking resilience, and infra/digital boom. No major BSE/NSE regulatory calls today; watch corporate actions like stock splits (e.g., MCX).
Sentiment leans cautiously bullish with selective opportunities in autos, banking, and consumer retail. Watch auto stocks for sustained momentum and PSU banks for growth visibility. Pre-market snapshot—updates may evolve.
This is aggregated data for informational purposes; consult a financial advisor. Not investment advice.