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.

• Markets flat on New Year holiday; Sensex down slightly, Nifty up slightly

• ITC and FMCG stocks plunge on tobacco excise duty hike

• Auto stocks gain on strong December sales data

• Vodafone Idea up on major promoter funding, AGR relief

• Adani Group advances in defence and renewables

• Global trade uncertainty persists with US tariff delays

Indian equity markets concluded 2025 on a positive note with a strong rally in the final trading session, led by metal and energy stocks amid government support measures and value buying. However, the year was marked by underperformance relative to global peers, driven by record FII outflows, rupee depreciation, and trade uncertainties, though domestic inflows provided resilience. Key themes included sectoral recoveries, commodity surges, and optimism for policy-driven growth in 2026.