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Indian Stocks Start 2026 Flat After Year-End Rally

Cautious tone reflects elevated valuations despite domestic support.

Overview

  • Nifty edged up 0.06% to 26,146.55 and Sensex slipped 0.04% to 85,188.60 as early strength faded in a holiday-thin session.
  • Autos and energy advanced on strong December sales and value buying, while FMCG fell sharply after the government set February 1 for higher tobacco excise.
  • Domestic institutions supported sentiment with Rs 6,759.64 crore of net buying on Dec 31 as foreign investors sold Rs 3,597.38 crore, extending 2025 outflows to about Rs 1.66 lakh crore.
  • Key levels watched include Nifty support near 26,000 and resistance around 26,250–26,300, keeping trade largely range-bound.
  • Brokerages maintain a cautiously constructive 2026 view, urging selectivity given rich mid/small-cap valuations as investors track the Union Budget, earnings and US–India trade developments.