Market Wrap, Jan 12: SENSEX gains 302 points, NIFTY50 settles at 25,790 on US-India trade deal update; TCS, HCLTech end higher ahead of Q3 earnings

At close, the benchmark S&P BSE SENSEX stood at 83,878.17, up 302 points, or 0.36%, while the NSE's NIFTY50 index ended at 25,790.25, up 106.95 points, or 0.42%.

The market rallied as after assuming charge as the US Ambassador to India, Sergio Gor said, "Many of you have asked me for an update on the ongoing trade deal negotiations. Both sides continue to actively engage. In fact, the next call on trade will occur tomorrow. India is the world's largest nation."

Gor added, "So it's not an easy task to get this across the finish line, but we are determined to get there, and while trade is very important for our relationship, we will continue to work closely together on other very important areas such as security, counter-terrorism, energy, technology, education, and health..."

Commenting on today's market, Sachin Neema, fund manager at Garud Investment Managers, said that the markets finally reversed the five-session losing streak on the back of a relief rally, although the undertone still remains cautious with a negative bias.

Investors took solace in reports that the US-India trade negotiations are on track, which encouraged buying in select banking and oil stocks, whereas heavy buying was seen in metal stocks, especially in gold & silver.

FII fund outflows from domestic equities remain a concern, as delays in the outcome of trade talks are prompting overseas investors to trim their holdings.

NIFTY50 Heatmap

Among NIFTY50 stocks, 39 out of 50 constituents ended in the green, and the rest, 11, in the red. Coal India (CIL) shares ended as the top gainer on the index – up 3.39%, followed by Tata Steel (up 2.75%) and Asian Paints (up 2.5%).

On the other hand, Infosys was down over 1% and was the top loser. Tata Motors Passenger Vehicles Limited (TMPV) ended 1% lower.

IT services majors TCS and HCLTech ended higher ahead of their Q3 earnings announcements.

Key details

In the past five trading days, the BSE benchmark declined 2,185.77 points or 2.54%, and the NIFTY tumbled 645.25 points or 2.45%.

In Asian markets, South Korea's Kospi index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index ended higher.

Markets in Europe were trading on a mixed note.

US markets ended in positive territory on Friday.

Brent crude, the global oil benchmark, dipped 0.27% to $63.17 per barrel.