ndian equity markets gave up early gains in the first trading session of 2026, with Sensex falling 200 points from the day’s high and Nifty trading below 26,150. At 11:44 am, Sensex stood at 85,255.59 (+0.04%) and Nifty at 26,145.75 (+0.06%). Around 1,962 shares advanced, 1,564 declined, and 166 remained unchanged.
The market decline was driven by:
- FII selling: Foreign investors offloaded equities worth Rs 3,597 crore on Wednesday, marking seven consecutive sessions of net selling. In December 2025, FIIs were net sellers of Rs 34,350 crore.
- Thin trading volumes: Liquidity remained low as global markets in the US, Europe, and Asia were closed for New Year’s Day.
- Profit booking: FMCG and pharma stocks saw profit booking. Tobacco shares were hit after the government imposed new excise duties, with ITC down 6% at Rs 378.45 and Godfrey Phillips falling 10% to Rs 2,484.80.
- Weekly derivatives expiry: The first weekly expiry of 2026 added intraday volatility.
- Rupee depreciation: The Indian rupee weakened 11 paise to 89.99 against the US dollar due to continued foreign fund outflows.
Benchmarks are expected to remain sideways in early 2026, with selective buying amid low liquidity and key triggers including quarterly earnings, India-US trade developments, and the upcoming Union Budget.
