The Indian benchmark indices witnessed significant gains on Friday as the Sensex closed above 85,800 gaining over 623 points and the Nifty ended at 26,333 jumping 186 points.
During the morning session, the BSE Sensex opened the session near 85,300, rallying almost 100 points, while the NSE Nifty50 started trading above 26,150, rising only 14 points.
FIIs Remain Sellers, DIIs Provide Cushion
Foreign Institutional Investors (FIIs) continued to pare exposure on Thursday, selling equities worth Rs 3,268.60 crore, according to exchange data. Domestic Institutional Investors (DIIs), however, stayed supportive, purchasing shares worth Rs 1,525.89 crore.
Steady domestic inflows are helping offset sustained foreign selling and offering broader support to Indian equities, said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
Asian Markets Higher; US Shut for New Year Holiday
Asian equity markets traded in positive territory, providing early cues to domestic investors. South Korea’s Kospi, China’s Shanghai SSE Composite and Hong Kong’s Hang Seng index were all higher in early trade.
US markets remained closed overnight on Thursday due to the New Year’s Day holiday, leaving investors without fresh cues from Wall Street.
Crude Oil Prices Edge Up
In the commodities market, Brent crude, the global oil benchmark, rose 0.46 per cent to $61.13 per barrel, staying within a range considered comfortable for domestic macroeconomic stability.
Market participants are expected to monitor global cues, crude oil trends and institutional fund flows for direction as the new calendar year unfolds on a cautious but steady note.
Markets Open 2026 on Muted Note
Indian equity markets began calendar year 2026 in a cautious, largely range-bound manner, with benchmark indices ending almost flat amid thin holiday volumes, persistent foreign outflows and stock-specific selling.
Early optimism faded as heavy selling in ITC shares and a weaker rupee weighed on sentiment, traders said. Selective buying in a few pockets helped limit losses.
Sensex Flat, Nifty Posts Marginal Gains
The Sensex slipped 32 points, or 0.04 per cent, to close at 85,188.60 on Thursday after late-session selling erased early gains. The Nifty edged up 16.95 points, or 0.06 per cent, to settle at 26,146.55.
Analysts noted that the session marked the smallest daily trading range for the Nifty since September 17, 2025, reflecting market indecision and subdued participation from both buyers and sellers.
Tobacco Stocks Slide on Tax Notification
Shares of cigarette and tobacco product makers declined sharply after the government notified February 1 as the implementation date for additional excise duty on tobacco products and a health cess on pan masala. Godfrey Phillips India fell 17.09 per cent.
Consolidation Near Record Highs
Markets entered 2026 in a consolidation phase, with indices hovering near record highs amid selective buying and profit-booking.
“The Nifty-50 closed marginally higher at 26,146, managing to hold above the key 26,100 level despite muted global cues and holiday-thinned volumes,” said Aakash Shah, Research Analyst at Choice Broking.
