NewsStocksIndian Markets Snap 5-Day Losing Streak as Sensex Rallies 302 Points on Trade Deal OptimismIndian Markets Snap 5-Day Losing Streak as Sensex Rallies 302 Points on Trade Deal Optimism
Indian equity markets recovered strongly on January 12, with Sensex gaining 301.93 points (0.36%) to close at 83,878.17 and Nifty rising 106.95 points (0.42%) to 25,790.25, ending a five-day losing streak. The recovery was driven by positive comments from US Ambassador Sergio Gor about India-US trade deal discussions. Metal and PSU Bank sectors led gains, while broader markets remained weak with midcap and smallcap indices declining.
*this image is generated using AI for illustrative purposes only.
Indian equity benchmarks staged a remarkable recovery on January 12, snapping a five-day losing streak as both the Sensex and Nifty closed in positive territory after a volatile trading session. The markets witnessed a sharp mid-session turnaround following optimistic comments about India-US trade deal prospects.
Market Performance Overview
The benchmark indices demonstrated resilience despite opening lower amid mixed global cues. The trading session was marked by significant volatility, with the Nifty hitting an intraday low of 25,473.40 before recovering to close near the day's high.
| Index | Closing Price | Points Change | Percentage Change |
|---|---|---|---|
| Sensex | ₹83,878.17 | +301.93 | +0.36% |
| Nifty 50 | ₹25,790.25 | +106.95 | +0.42% |
| Nifty Bank | ₹59,450.50 | +198.95 | +0.34% |
Trade Deal Catalyst Drives Recovery
The market turnaround was primarily attributed to comments from US Ambassador Sergio Gor regarding a potential India-US trade deal. Gor indicated that both sides would continue active engagement, with the next round of talks scheduled for the following day. This development provided the necessary catalyst for the sharp mid-session recovery that pushed indices into positive territory.
Sectoral Performance Analysis
Sectoral performance showed mixed trends, with metals leading the gains while certain defensive sectors faced pressure.
Top Performing Sectors:
- Metal Index: +2.00% (₹11,315.80, +221.00 points)
- PSU Bank Index: +0.70%
- FMCG Index: +0.60%
Underperforming Sectors:
- Pharma Index: -0.41% (₹22,668.50, -92.50 points)
- Capital Goods, Media, and Realty: declined 0.50% to 1.50%
Individual Stock Movements
Among Nifty constituents, Coal India emerged as the biggest gainer, rising 3.33% to ₹432.30 with an increase of ₹13.95. Other notable gainers included Trent, Asian Paints, Tata Steel, and JSW Steel. On the downside, Infosys was the biggest loser, declining 1.13% to ₹1,595.90, followed by Eicher Motors, Bajaj Finance, Tata Motors Passenger Vehicles, and Bajaj Auto.
Broader Market Weakness Persists
Despite the benchmark recovery, broader markets continued their underperformance trend. The BSE Midcap index fell 0.40%, while the Smallcap index shed 0.70%, indicating selective buying interest primarily focused on large-cap stocks. Notably, over 360 stocks hit 52-week lows during the session, including Tejas Networks, Signature Global, Tube Investment, United Breweries, and Siemens Energy, highlighting the underlying market weakness beyond the headline indices.
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