Market Wrap, Jan 1: SENSEX flat, NIFTY50 ends at 26,146, Nifty FMCG tanks 4% as ITC crashes 10%; VIX down 3%

The Indian stock market ended the first trading session of 2026 on a flat and mixed note. The benchmark equity indices saw a volatile day, with auto stocks rallying while FMCG shares remained under pressure on Thursday, January 1.

Further, shares of cigarette, tobacco, pan masala, and similar product manufacturers like Godfrey Phillips and ITC tumbled on Thursday as the government announced February 1 as the date from which additional excise duty will be levied on tobacco products and a new cess on pan masala.

The auto stocks were also on investors’ radar as the carmakers reported their December sales numbers. Ashok Leyland was the top gainer on the Nifty Auto index after it reported a 27% increase in total sales for December 2025.

According to exchange data, on Wednesday, the foreign institutional investors (FIIs) sold shares worth ₹3,597.38 crore, while the domestic institutional investors (DIIs) bought equities worth ₹6,759.64 crore on a net basis.

Globally, Asian markets remained closed on account of New Year's. On Wall Street, US shares ended lower on the last trading session of 2025. The Dow Jones Industrial Average fell 0.63%, the S&P 500 declined 0.74%, and the tech-heavy Nasdaq dropped 0.76%.

Here are the key developments of Thursday's session that you need to know

As many as 3,223 stocks traded on the NSE on Thursday. Out of this, 1,683 advanced and 1,448 stocks declined, while 92 scrips remained unchanged.

This indicated that the market breadth was in favour of advances.

A total of 66 stocks hit their 52-week highs, while 62 stocks touched their one-year lows. Besides, 79 stocks hit their upper circuit limits, and 52 touched their lower circuit bands on Thursday.

The market capitalisation of NSE-listed firms stood at ₹474.79 lakh crore at the close of the session.

India VIX, the volatility gauge, stood at 9.19 levels, slumping 3.06%.

The broader markets also ended mixed, with the Nifty Smallcap 100 index falling 0.05% to close at 17,704.90, while the Nifty Midcap 100 index ended at 60,750.45, gaining 0.44%.

Among sectors, Nifty Auto took the lead among winners, gaining 1.03%, while Nifty Realty (0.84%), Nifty Metal (0.79%), Nifty IT (0.76%) and Nifty PSU Bank (0.45%) were the other top gainers.

Meanwhile, weighed down by ITC (-9.69%), United Spirits (-2.65%) and Tata Consumer Products (-1.57%), Nifty FMCG tanked 3.17%. Nifty Pharma was also declined -0.4%.

On the NIFTY50, 38 stocks ended in the green, while 12 declined on Thursday.

Bajaj Auto was the most contributing stock, rising 2.59%, followed by Shriram Finance (2.39%), NTPC (1.99%), Eternal (1.98%) and Wipro (1.52%).

On the contrary, ITC (-9.69%), Tata Consumer Products (-1.57%), Dr Reddy’s (-1.53%), Bajaj Finance (-1.13%) and ONGC (-1.03%) were the biggest laggards on the 50-share index.