Indian stock market indices, the Nifty 50 and the Sensex, are expected to exhibit a mixed to positive opening on Tuesday, January 6, 2026, mirroring gains observed in Asian markets.
Global and Domestic Cues
Gift Nifty trends indicate a positive start for the Indian benchmark index, with the Gift Nifty trading at 26,392, a rise of 76 points or 0.28% from the previous Nifty futures close. Positive closures in European indices, including the DAX, STOXX 50, and FTSE 100, may provide underlying support, particularly for export-oriented and cyclical sectors.
On Monday, January 5, both the Nifty 50 and the Sensex closed in the red, influenced by selling in heavyweight stocks such as HDFC Bank, Reliance Industries, and IT counters. The NSE Nifty index, after hitting an intraday record high of 26,373.20, failed to maintain momentum, ultimately dropping 78.25 points (0.30%) to close at 26,250.30. Similarly, the 30-share BSE Sensex fell by 322.39 points (0.38%) to settle at 85,439.62.
Market Sentiment and Outlook
Market analysts suggest a cautious approach, anticipating a range-bound opening unless fresh triggers emerge. The India VIX edging higher indicates some level of caution among traders. Despite intermittent buying by Foreign Institutional Investors (FII), consistent Domestic Institutional Investor (DII) inflows could offer stability.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, maintains a positive outlook on the Indian stock market, noting the Nifty 50 index's ability to sustain above 26,200. Parekh anticipates the index will approach 26,500 in the near future, with a near-term support level around 26,150.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty is currently positioned at a crucial support zone. Shetti expects a bounce back from the 26,200-26,150 levels in the next 1-2 sessions, with an upside target around 26,700. Ajit Mishra from Religare Broking suggests focusing on quality stock-specific opportunities, with Nifty support in the 26,000-26,200 range and potential to move towards 26,500-26,700.
Sectoral Performance
On January 5, selling pressure was broad-based, with IT and energy indices experiencing significant declines. Conversely, realty, FMCG, and metal stocks demonstrated strength. The Nifty Bank index reached a new lifetime high of 60,437.35 during the day but closed in the red at 60,044.20, down 0.18%. The Nifty Auto index has outperformed the broader market over the past week, gaining 5.4%. Automobile stocks continued their rally, with Maruti Suzuki India and Eicher Motors reaching new lifetime highs.
FII/DII Activity
Recent FII/DII trading activity reveals a mixed trend. On January 5, 2026, FIIs recorded net sales of ₹36.20, while DIIs showed net purchases of ₹1,764.10.
Key Stocks and Events
- Axis Bank, Trent, ONGC, Waaree Energies, and Torrent Pharma are among the stocks to watch.
- IDBI Bank reported a 15% year-on-year growth in net advances.
- Hindustan Laboratories has filed for an IPO.
- Tata Motors PV and JLR Retail sales are down.
Overall, the Indian stock market is expected to open with mixed to positive signals, influenced by global cues and technical factors. While caution is advised due to volatility and geopolitical concerns, analysts suggest maintaining a positive outlook with a focus on identifying stock-specific opportunities.
