The Indian stock market kicked off 2026 on a modest note as liquidity remained low, with most major international markets closed for New Year’s Day.
The Nifty 50 closed with a 0.06% gain, ending at 26,146, while the S&P BSE Sensex closed 0.04% lower at 85,1.88The broader markets closed mixed, with the Nifty Midcap 100 index surging 0,30%, while the Nifty Smallcap 100 fell 0,20%,
Sector performance were mixed, with Nifty FMCG skidding 3.2% amid a sharp crash in heavyweight ITC, followed Nifty Chemicals, Nifty Pharma and Nifty Oil and Gas, all closed lower.
On the upside Nifty Auto surged 1%, while Nifty Realty, Nifty Metal, Nifty IT and Nifty PSU Bank, all gained between 0.70% and 0.90%.
January is set to be a busy month for the Indian stock market, with companies rolling out business updates alongside their December quarter results. Investors will also keep a close watch on the ongoing trade talks with the US and the US Federal Reserve meeting.
Historically, January has been a weak month for the Indian stock market, with the Nifty 50 closing lower in each of the last five years. Though domestic liquidity continues to support local equities, it remains to be seen whether FPIs will shift their stance after withdrawing a record. 1.6 lakh crore from the Indian stock market in 2025, as per NSDL data.
Tobacco stocks tumble after excise duty hike
Shares of tobacco companies dipped heavily, with ITC, Godfrey Phillips, and VST Industries crashing 10%, 18%, and 1%, respectively, after the government imposed an excise duty on cigarettes, effective next month onwards. This triggered concerns on the Street that higher prices could lead to a drop in volumes.
The excise duty will be imposed in the range of 2,050–8,500 per thousand sticks, based on the length of the products, starting February 1, according to a Finance Ministry order issued late on Wednesday.
Reliance Infrastructure witnessed another round of selling pressure, hitting 5%lower circuit to close at 164.5 apiece.
Deepak Fertilizers & Petrochemicals resumed its losing streak after a brief pause, as shares tumbled 3.4% to 1,245 apiece. KPR Mill also slipped back into the red with a 3.20% decline at 912 apiece.
Extending its losing streak for the third straight session, CCL Products India sank 3.6% to 910, its lowest level since early November.
Ather Energy also came under pressure, slipping 2.15% to 738.50 apiece. The stock had delivered a whopping 123% gain in 2025.
Other key laggards include United Spirits, Gillette India, Usha Martin, TBO Tek, Sarda Energy & Minerals, Triveni Engineering, Tata Chemicals Kaynes Technology India, and six other constituents of the Nifty 500, all falling by over 2%.
Vodafone Idea rebounds sharply; Ajanta Pharma, Ashok Leyland shine
Among the top gainers, Vodafone Idea recovered sharply from Wednesday’s slump, emerging as the top performer in the Nifty 500 pack. The stock surged 8.8% to 11.7 apiece, largely recovering the losses seen in the previous session.
Transformers & Rectifiers also witnessed a sharp rebound from the recent slump, with the stock spiking 8% to 307.90 apiece.
Keeping its bull run intact for the fourth straight session, Ajanta Pharma shares advanced another 6% to 2,938 apiece, while Finolex Cables, Adani Total Gas, and Aditya Birla Sun Life AMC each rallied over 4.5%.
Ola Electric began 2026 on a positive note, with the stock rising 3.5% to 37.5 a piece. However, it remained one of the biggest wealth destroyers of 2025 after crashing 58% during the year.
Ashok Leyland closed 3% higher at 185 apiece after reporting a beat in December wholesale volumes. The company dispatched 21,533 units to dealers in December, marking a 27% rise compared with the same period last year.
Other top performers from the Nifty 500 included Finolex Cables, Adani Power, PNB Housing Finance, Granules India, Chalet Hotels, Astral, REC, IndusInd Bank, and APL Apollo Tubes, all of which rose by over 3%.
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