Indian stock markets saw a turnaround on Monday, breaking a five-day losing streak, as upbeat news from the United States boosted investor confidence. The markets surged following remarks by US Ambassador to India Sergio Gor about upcoming trade talks between the two countries. This development sparked renewed buying activity across various sectors, leading to a strong recovery in benchmark indices.
The Sensex, India’s 30-share index, rallied nearly 1,100 points from its intraday low, closing at 83,878 with a gain of 302 points or 0.36%. Similarly, the Nifty on the National Stock Exchange also showed resilience, climbing from a low of 25,473.40 to a high of 25,813.15 before settling at 25,790, up 107 points or 0.42%.
Analysts noted that while momentum indicators were bearish, the 100-day EMA (25,540–25,600) played a crucial role in initiating the market rebound. They highlighted that the immediate resistance levels are at 25,800–25,870, representing the next significant challenge for the market.
Despite the positive performance of key indices, the broader market faced downward pressure, with the Nifty MidCap index slipping marginally by 0.05% and the Nifty SmallCap index declining by 0.52%. Investors are now awaiting the release of retail inflation data for December, based on the consumer price index, and are keeping a close eye on the upcoming Union Budget presentation scheduled for February 1, 2026.
The commodities segment outperformed, driven by strong performances in the metals sector amid supply constraints. Market participants also engaged in value buying in consumer and banking stocks, capitalizing on recent corrections and anticipating stronger Q3 earnings and improved demand trends.
