Indices end first trading session of 2026 on muted note amid ITC selloff

Indian equity benchmarks closed largely flat in the first trading session of 2026, as gains in Larsen & Toubro and M&M offset sharp losses in ITC after a new tobacco tax announcement

India's equity benchmarks ended flat in the first trading session of 2026. Gains in index-heavyweights Larsen & Toubro and Mahindra & Mahindra offset a decline in ITC, after the government announced a new tax regime on tobacco, taking effect from February.

 

The Sensex closed at 85,189, down 32 points or 0.04 per cent. It is the first time since 2018 that the index has declined in the opening session of a calendar year. Nifty, meanwhile, ended the session at 26,147, up 17 points or 0.06 per cent.

 

Shares of cigarette maker ITC fell 9.7 per cent, making it both the worst-performing Sensex stock and the biggest drag. But gains in other index heavyweights mitigated the decline.

 

 

"The domestic market started the year with a range-bound session and ended slightly higher amid thin trading due to global holidays and continued FII selling. Sectorally, auto stocks gained on strong December sales, while value buying supported IT stocks. However, overall advances were capped as FMCG stocks declined following the newly imposed excise duty on cigarettes,” said Vinod Nair, head of research at Geojit Investments. Q3 earnings, budget expectations, global cues such as the India-US trade deal and potential Fed actions are expected to guide market direction, with earnings growth likely to remain the key driver in 2026, he added.

 

The market breadth was better with 2,145 stocks gaining and 2,024 declining. Foreign Portfolio Investors (FPIs) were net sellers of equities worth ₹3,269 crore, while domestic institutions were net buyers worth ₹1,526 crore.

 

"Going ahead, for Nifty, the zone of 26,200-26,240 will act as an important hurdle for the index. Any sustainable move above the 26,240 level will lead to a sharp upside rally in the index up to the 26,400 level in the short term. On the downside, the zone of 26,030-26,000 will act as immediate support for the index,” said Sudeep Shah, head of technical and derivatives research at SBI Securities.

 

NTPC which rose 2.08 per cent was the best performing Sensex stock, followed by Eternal, which rose 2.05 per cent. 

Abakkus MF's maiden NFO raises nearly Rs 2,500 crore

 

Abakkus Mutual Fund (MF), the latest entrant in the MF industry, has raised nearly ₹2,500 crore through its first new fund offering (NFO), the fund house said. It had launched its flexicap fund on December 8. The NFO collection is among the highest for diversified equity schemes in 2025. "This is a reflection of strong interest from investors across the country, recording participation from nearly 5,518 pin codes from across 2,000 cities. About 36,688 retail and 1,060 institutional investors subscribed to the NFO," Abakkus MF said. The fund house has empanelled close to 4,700 distributors to build its reach.