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Markets Flat as Earnings Season Looms
1 Jan
Summary
- Equity indices closed flat due to derivatives expiry.
- Auto and metal stocks gained; pharma and healthcare declined.
- New excise duties on cigarettes effective February 2026.
Benchmark equity indices concluded trading sessions with minimal movement, influenced by the expiry of weekly Sensex derivatives contracts. In the absence of significant economic indicators, the Nifty managed to stay above the 25,150 mark, despite some early gains being retracted. Sectors like automotive and metals experienced upward trends, contrasting with declines in pharmaceutical and healthcare stocks as the market anticipated the forthcoming earnings season.
Investors are also reacting to new government regulations impacting the tobacco industry. Effective February 1, 2026, an additional excise duty on cigarettes and a Health and National Security Cess on pan masala will be implemented. This measure is expected to increase taxes beyond existing GST rates, potentially affecting sales volumes for cigarette manufacturers.
In other market movements, the S&P BSE Mid-Cap index saw a slight increase, while the Small-Cap index experienced a minor dip. The India VIX, a volatility gauge, decreased, indicating reduced market uncertainty in the short term. Several auto companies reported robust sales figures for December 2025, contributing to sector-specific optimism.
