Indian Stock Markets Recover After Five-Day Decline
Market Recovery in Mumbai
Mumbai, Jan 12: Indian stock markets made a notable recovery on Monday, breaking a five-day losing streak, as positive developments from the United States boosted investor sentiment.
The market's mood shifted significantly after US Ambassador to India, Sergio Gor, announced that trade discussions between the US and India would commence as early as Tuesday.
This announcement sparked renewed buying activity across major sectors, allowing the benchmark indices to rebound from their earlier lows.
The Sensex surged nearly 1,100 points from its lowest point during the session, ultimately closing at 83,878, which reflects an increase of 302 points or 0.36 percent.
Similarly, the Nifty index on the National Stock Exchange also demonstrated a robust recovery, climbing from an intra-day low of 25,473.40 to a peak of 25,813.15, before finishing at 25,790, up 107 points or 0.42 percent.
An analyst noted, 'Despite the overall bearish momentum indicators, the 100-day EMA (25,540–25,600) provided essential support, facilitating the bounce back.'
'Immediate resistance is anticipated at 25,800–25,870, which will be the next significant challenge,' the market observer added.
However, the broader market faced some challenges, with the Nifty MidCap index dipping slightly by 0.05 percent and the Nifty SmallCap index falling by 0.52 percent.
On the economic front, investors are keenly awaiting significant upcoming events, including the release of retail inflation data for December, based on the consumer price index, scheduled for later today.
Market participants are also closely monitoring the Union Budget, which is set to be unveiled on Sunday, February 1, 2026.
In the commodities market, performance was bolstered by strength in metals, driven by renewed buying interest amid supply constraints.
'Value buying was apparent in consumer and banking stocks, as investors looked for opportunities following recent corrections, buoyed by expectations of stronger Q3 earnings and improving demand,' the market analyst concluded.