Indian equity markets began 2026 with a muted performance, closing the first trading session flat. The BSE Sensex dipped slightly by 32 points to 85,188.60, while the NSE Nifty edged up 17 points to 26,146.55. Trading volumes were thin due to global holidays. A significant drag was ITC, which fell nearly 10% following the government's announcement of new excise duties on tobacco products effective February 1. Auto and IT sectors showed gains, while FMCG stocks declined.