Indian equity markets staged a sharp intraday turnaround on January 12, 2026, with the Sensex bouncing back from losses of over 700 points to finish higher, as reassuring remarks from the newly appointed US Ambassador to India, Sergio Gor, helped calm investor fears and lift overall market sentiment.
Key Market Movement
- The Sensex had slid more than 700 points early in the session, with the Nifty briefly dipping below the 25,500 level amid worries sparked by earlier tariff threats and selling pressure.
- Within about an hour, both indices recovered all losses, with the Sensex eventually closing around 302 points higher at 83,878 and the Nifty finishing up approximately 107 points at 25,790.
What Triggered the Rally?
The rebound was largely attributed to positive comments from Sergio Gor, who conveyed a more conciliatory tone on India–US trade relations:
- Gor emphasised the strategic importance of India to the United States and said the two countries remain actively engaged in trade discussions, helping reduce fears of escalating trade tensions.
- He reiterated that trade talks would continue soon and conveyed best wishes from US President Donald Trump to India’s leadership, which further boosted market confidence.
- Gor also announced that India would be invited to join PaxSilica, a US-led initiative aimed at securing a resilient global silicon and semiconductor supply chain, which added to positive sentiment.
Breadth of the Rebound
The rally was broad-based, helping:
- Bank Nifty claw back significant losses.
- Mid-cap and small-cap stocks pare declines.
- Export-oriented shares rebound after tariff worries eased.
What This Means for Markets
This turnaround highlighted how sensitive Indian benchmarks remain to geopolitical and trade news, especially developments involving major partners like the United States. Short-term sentiment can shift quickly when concerns about tariffs or diplomatic friction are soothed by clear diplomatic signals.
Leave A Comment