Benchmark equity indices opened the first trading session of 2026 on a positive note, with early gains led by auto and metal stocks, although weakness in FMCG and pharmaceutical shares capped the upside. In early trade, the S&P BSE Sensex rose by 104.21 points to reach 85,324.81, while the NSE Nifty50 advanced 28.60 points to trade at 26,158.20 as of 9:25 am, reflecting a cautiously optimistic start to the new year.
Commenting on the market outlook, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said that returns in the initial phase of 2026 are expected to remain modest. He noted that a sustained rally would likely depend on a visible improvement in corporate earnings and a return of foreign institutional investors as net buyers in the Indian equity market.
Among the top gainers in early trade, InterGlobe Aviation (IndiGo) led the pack with a rise of 2.09 per cent. It was followed by Mahindra & Mahindra, which gained 1.22 per cent, Reliance Industries, which advanced 1.12 per cent, Eternal, which added 1.01 per cent, and Larsen & Toubro, which climbed 0.68 per cent, supported by buying interest in large-cap stocks.
On the downside, ITC emerged as the biggest laggard, slipping 4.03 per cent in early deals. Other stocks that witnessed selling pressure included Bharat Electronics, which fell 0.49 per cent, Bajaj Finance, down 0.40 per cent, Sun Pharmaceutical Industries, which declined 0.29 per cent, and Trent, which eased 0.27 per cent.
Sharing his broader investment perspective for the year, Vijayakumar said that investors should carry forward key lessons from 2025. He highlighted the importance of diversification across geographies, adopting a multi-asset investment approach, and paying close attention to valuations. He added that while equities should command a higher allocation in 2026 compared to last year, investors should prefer large-cap stocks. Although the broader market could perform better than in the previous year, he cautioned that valuations, particularly in the small-cap segment, remain stretched and warrant careful consideration.
