Mumbai: The Indian stock market saw a rollercoaster ride on Monday, January 12, as investors reacted to both domestic and international developments. Early in the session, benchmark indices fell sharply, with the S&P BSE Sensex dropping over 700 points and the Nifty50 dipping below 25,700.
However, the market staged a strong recovery in the afternoon. The turnaround came after reports suggested that the US and India will discuss their ongoing trade deal on Tuesday, January 13.
This news brought relief to investors who had been worried about trade tensions affecting the market. The Sensex swung 850.86 points during the day, hitting a low of 82,861.07 and a high of 83,711.93. By late afternoon, the Sensex was trading at 83,654.13, up 77.89 points (0.09 percent), while the Nifty50 rose 18.15 points (0.07 percent) to 25,701.45.
US Ambassador to India, Sergio Gor, shared optimism about the trade talks, saying both countries continue to actively engage and are determined to finalize the deal. He emphasized that trade is important, but cooperation will continue in areas like security, counter-terrorism, energy, technology, education, and health.
Despite the recovery, the rally was limited. Investors remained cautious ahead of earnings announcements from major IT companies, TCS and HCLTech, later in the day. Global developments also kept traders on edge. The Indian government noted its close monitoring of the situation in Iran, where anti-government protests have reportedly killed hundreds. US President Donald Trump hinted at potential military options in Iran, adding to the geopolitical uncertainty.
Overall, the markets displayed high volatility but managed to recover some of their early losses, reflecting a mix of hope over trade discussions and caution due to global and corporate developments.
