Stock recommendations for 2 January from MarketSmith India

Market breadth was mildly positive, with 1,683 stocks advancing against 1,448 declines, indicating selective buying interest beneath the surface. On the sectoral front, Auto, IT, Metals, and Realty stocks outperformed, supported by bargain hunting and expectations of steady demand.. On the other hand, FMCG emerged as the key laggard, witnessing profit booking after its recent rally. Financials were mixed, with private banks and financial services inching higher, helping cushion the benchmarks. On the downside, defensive pockets such as FMCG and select pharma names weighed on sentiment.