Sensex, Nifty snap five-day losing streak on trade optimism

Domestic equity benchmarks snapped a five-day losing streak on Monday after a sharp intraday rebound. The move was driven by positive global cues, value buying and reassuring comments on India-US trade ties from newly appointed US Ambassador to India Sergio Gor. The Sensex, which was down over 700 points in early trade, recovered more than 1,000 points from the day?s low by the close. The Nifty also climbed back above the 25,790 level as sentiment improved, with metals, PSU banks and energy stocks leading the recovery.

The market reacted after Gor said India and the US remain actively engaged on trade and that talks are continuing despite differences. He also conveyed greetings from President Donald Trump to Prime Minister Narendra Modi. Sentiment received an added boost after Gor announced that India would be invited next month to join PaxSilica.

The recovery was broad-based. Bank Nifty rebounded sharply, while midcap and smallcap indices erased a large part of their early losses. Export-oriented stocks also gained as fears of an immediate tariff escalation eased after weeks of sustained selling and foreign fund outflows.

The S&P BSE Sensex advanced 301.93 points or 0.36% to 83,878.17. The Nifty 50 index gained 106.95 points or 0.42% to 25,790.25. In the past five consecutive trading sessions, the Sensex declined 2.54% while the Nifty fell 2.45%.

State Bank of India (up 1.40%), ICICI Bank (up 1.12%) and Reliance Industries (up 0.59%) were major drags on the Nifty today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.41% and the S&P BSE Small-Cap index fell 0.68%.

The market breadth was weak. On the BSE, 1,569 shares rose and 2,724 shares fell. A total of 192 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 4.05% to 11.37.

Economy:

India?s consumer inflation rose to 1.33% in December, accelerating from 0.71% in the prior month. The rise in consumer inflation was mainly driven by food prices, while fuel and light inflation rate eased in December.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.48% to 6.604 as compared with the previous close of 6.636.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 90.1700 compared with its close of 90.1800 during the previous trading session.

MCX Gold futures for 5 February 2026 settlement added 1.91% to Rs 141,470.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.29% to 98.84.

The United States 10-year bond yield rose 0.72% to 4.202.

In the commodities market, Brent crude for March 2026 settlement declined 32 cents or 0.51% to $63.02 a barrel.

Global Markets:

The Dow Jones Futures were down 375 points, indicating a weak opening in the US market today.

European were mixed on Monday as investors weighed geopolitical developments in Iran and renewed pressure on Federal Reserve Chair Jerome Powell.

Most Asian markets ended higher, tracking gains on Wall Street from last week after a US jobs report showed that the unemployment rate fell, signaling resilience in the labor market. South Korea?s Kospi closed at an all-time high today as Asia-Pacific markets advanced. Japanese markets were closed for a holiday.

Investors will be keeping an eye on oil prices as Iran entered a third week of protests, which have reportedly seen more than 500 people killed. President Donald Trump is weighing options for intervention in Iran, media reports said.

On Sunday, Japanese Prime Minister Sanae Takaichi?s coalition partner, Hirofumi Yoshimura, said that she may call an early general election. His comments come after domestic media reported that Takaichi was considering a snap election in February, citing government sources.

On Friday stateside, the S&P 500 rose to new highs on Friday, notching a weekly gain, following the release of the latest jobs report. The broad market index closed up 0.65% to 6,966.28, a fresh record close. It also notched a new all-time intraday high in the session.

The Nasdaq Composite gained 0.81% to 23,671.35. The Dow Jones Industrial Average added 237.96 points, or 0.48%, to end at 49,504.07, scoring a new closing record as well.

The December jobs report showed nonfarm payrolls increasing by 50,000 last month, less than the 73,000 estimate that was widely reported in the media. That data, though slightly weaker than expected, showed a U.S. economy that?s still trudging along, with investors anticipating that growth will ramp up.

The unemployment rate inched down to 4.4%, while widely circulated media reports had provided a forecast of 4.5%. Traders took that as a sign that improvement in the economy would happen soon.

Stocks in Spotlight:

TCS rose 0.86%. The IT major reported a 14% year-on-year (YoY) decline in consolidated net profit for the December quarter at Rs 10,657 crore, compared with Rs 12,380 crore in the year-ago period. The profit after tax (PAT) is attributable to the company?s shareholders.

Revenue from operations in Q3 rose 5% YoY to Rs 67,087 crore, up from Rs 63,973 crore in the corresponding quarter of the previous financial year.

The company announced an interim dividend of Rs 57 per equity share for FY26, comprising a third interim dividend of Rs 11 per share and a special dividend of Rs 46 per equity share. The company has fixed 17 January 2026, as the record date.

The company's order book total contract value (TCV) stood at $9.3 billion in Q3 December 2025, lower than $10 billion in Q2 September 2025 and $9.4 billion in Q1 June 2025.

Avenue Supermarts (Dmart) rose 0.75%. The company consolidated net profit rallied 18.26% to Rs 855.92 crore in Q3 FY26 as against Rs 723.72 crore in Q3 FY25. Revenue from operations rose 13.32% to Rs 18,100.88 crore in Q3 FY26 as against Rs 15,972.55 crore in Q3 FY26.

Tejas Networks tumbled 9.40% after the company reported a consolidated net loss of Rs 196.55 crore in Q3 FY26, compared with a net profit of Rs 165.67 crore recorded in Q3 FY25. Total revenue from operations plunged 88.38% to Rs 306.79 crore in Q3 FY26, down from Rs 2,642.24 crore recorded in the corresponding quarter of the previous year.

Manappuram Finance rose 3.17% after the company denied a media report claiming regulatory concerns had delayed its proposed transaction with Bain Capital-linked entities. The company termed the report factually incorrect and speculative.

KP Green Engineering rose 3.28% after the company announced its largest-ever order win, securing advance work orders worth Rs 819 crore from BSNL under the 4G Saturation Project.

Hindustan Zinc rose 3.40%, as silver prices surged to fresh record highs.

Indian Renewable Energy Development Agency (IREDA) gained 3.55% after the company?s consolidated net profit rallied 15.42% to Rs 1,381.36 crore on 26.80% increase in total revenue from operations to Rs 6,135.08 crore in Q3 FY26 over Q3 FY25.

Globus Spirits slipped 3.33%. The company?s standalone net profit skyrocketed over fifteen times to Rs 31.42 crore on a 19.1% increase in revenue from operations (excluding excise duty) to Rs 716.39 crore in Q3 FY26 over Q3 FY25.

Shakti Pumps India jumped 5.19% after the company received letter of award (LoA) for setting up 16,780 stand‐alone off‐grid DC solar photovoltaic water pumping systems (SPWPS) pumps in Karnataka. The contract is valued at Rs 654.03 crore and is expected to be executed on or before 31st March 2026.

Signatureglobal (India) dropped 6.47% after the company flagged a slowdown in demand and said it will miss its earlier pre-sales guidance for FY26. In a regulatory filing on 11 January 2026, the real estate developer reported a 27% decline in pre-sales to Rs 20,200 crore in Q3 FY26 compared with 27,700 crore posted in Q3 FY25.

Maruti Suzuki India added 0.65%. The company said that its board approved the acquisition of land at the Khoraj Industrial Estate from Gujarat Industrial Development Corporation (GIDC) to expand production capacity, driven by growing market demand, including exports.

Cupid advanced 2.30% after the company announced that a meeting of the board of directors will be held on Thursday, 29 January 2026, to consider the declaration of bonus shares and the Q3 results.

Mahindra & Mahindra (M&M) rose 0.34%. The company reported a 25.41% increase in production to 68,992 units in December 2025, compared with 55,015 units in December 2024.

Embassy Developments hit an upper circuit of 5% after the company reported pre-sales of approximately Rs 1,392 crore in Q3 FY26, up 240% QoQ from Rs 409 crore in Q2 FY26.

Alembic Pharmaceuticals shed 0.49%. The company announced that it has received tentative approval from the US Food & Drug Administration (USFDA) for its supplemental Abbreviated New Drug Application (sANDA) for Bosutinib Tablets, 400 mg.

IPO Update:

The initial public offer (IPO) of Bharat Coking Coal received bids for 11,65,18,17,600 shares as against 34,69,46,500 shares on offer, according to stock exchange data at 16:57 IST on Monday (12 January 2026). The issue was subscribed 33.58 times.

The issue opened for bidding on Friday (9 January 2026) and it will close on Tuesday (13 January 2026). The price band of the IPO is fixed between Rs 21 and 23 per share. An investor can bid for a minimum of 600 equity shares and in multiples thereof.

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