{"id":19369,"date":"2026-01-01T17:02:10","date_gmt":"2026-01-01T11:32:10","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=19369"},"modified":"2026-01-01T17:02:10","modified_gmt":"2026-01-01T11:32:10","slug":"markets-see-early-volatility-as-2026-begins-ending-the-session-on-a-flat-note","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/markets-see-early-volatility-as-2026-begins-ending-the-session-on-a-flat-note\/","title":{"rendered":"Markets See Early Volatility As 2026 Begins, Ending The Session On A Flat Note"},"content":{"rendered":"

Dalal Street Begins 2026 With Volatility as Early Gains Fade Into a Flat Close<\/p>\n\n\n\n\n\n\n\n
Index<\/td>\nPrice<\/td>\nChange<\/td>\n% Chg<\/td>\n<\/tr>\n
Nifty 50<\/a><\/td>\n26,146.55<\/td>\n16.95<\/span><\/td>\n+0.06%<\/span><\/td>\n<\/tr>\n
Nifty Bank<\/a><\/td>\n59,711.55<\/td>\n129.70<\/span><\/td>\n+0.22%<\/span><\/td>\n<\/tr>\n
Nifty Financial<\/a><\/td>\n27,666.80<\/td>\n53.50\u00a0<\/span><\/td>\n+0.19%<\/span><\/td>\n<\/tr>\n
BSE SENSEX<\/a><\/td>\n85,188.60<\/td>\n32.00<\/span><\/td>\n-0.04%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Indian equity markets kicked off calendar year 2026 on a cautious and volatile note, with benchmark indices surrendering early gains to end the session almost unchanged. While buying interest was visible across several sectors such as auto, IT, metals and PSU banks, sharp selling in FMCG stocks\u2014led by ITC after a fresh cigarette tax announcement\u2014capped the upside and kept markets range-bound throughout the day.<\/p>\n

The Sensex slipped 32 points, or 0.04 percent, to close at 85,188.60, while the Nifty 50 managed to edge higher by 16.95 points, or 0.06 percent, settling at 26,146.55. Despite the lack of directional momentum, the Nifty remained comfortably above the psychologically important 26,100 level, reflecting underlying support at lower levels.<\/p>\n

Also Read : International Funds Deliver Up To 79% Returns In 2025\u2014What Investors Can Expect In 2026<\/a><\/p>\n

Narrow Trading Range Reflects Cautious Start to the New Year<\/h2>\n

The first trading session of 2026 was marked by unusually low volatility and limited participation. The Nifty moved within a narrow intraday band of just 84\u201385 points, the smallest daily range recorded since September 17, 2025. After opening higher and briefly approaching the 26,200 zone, the index slipped into a consolidation phase and traded sideways for most of the session.<\/p>\n

Market participants attributed the subdued movement to a combination of profit booking after Wednesday\u2019s sharp rally, thin liquidity, and lingering caution amid mixed global cues. Midday selling erased most of the morning gains, though selective buying helped the benchmarks avoid deeper losses by the close.<\/p>\n

ITC Tax Shock Drags FMCG as Cigarette Stocks Reel<\/h2>\n

One of the key drags on the market was a sharp sell-off in cigarette and FMCG stocks following the government\u2019s announcement of a higher excise duty on cigarettes, effective February. ITC shares plunged 9.7 percent, emerging as the biggest loser on the Sensex and Nifty, while Godfrey Phillips India slumped 17.1 percent.<\/p>\n

Analysts at Jefferies described the tax hike as \u201ca clear negative\u201d for ITC, warning that higher levies could hurt volumes and revive concerns about market-share losses to the illicit trade. The steep decline in ITC weighed heavily on the FMCG index, which ended the day down over 3 percent, making it the worst-performing sector.<\/p>\n

IT, Auto and Metals Cushion the Downside<\/h2>\n

Despite the FMCG-led drag, gains in other sectors helped stabilise the market. IT stocks witnessed steady buying after recent corrections, while auto shares advanced on the back of strong sales data and optimism around domestic demand. Metal stocks continued to find support following the government\u2019s decision earlier in the week to impose tariffs on select steel imports.<\/p>\n

On the sectoral front:<\/p>\n